Date: 2004-03-25
Speaker: JIM DAVIS (democrat)
Chamber: H
State: Florida

Mr. Chairman. our debate this aftemoon is in part over our disagreement about the best way to address the ever growing debt and now record deficit. Despite the many differences enumerated this afternoon there are certain truths which must direct our decisions: The Federal debt now tops over 7 trillion dollars. This amounts to over $24.000 worth of debt per U.S. resident. Thats an awesome burden to place on the backs of our children. This year. U.S. taxpayers will waste $156 billion on interest payments on the federal debtmoney that should have helped support our troops in the field. students in the classroom and seniors relying on Medicare. Medicaid and Social Security. And as this deficit spirals out of control. our governments excessive borrowing will deal a blow to our economy by forcing up interest rates for small businesses. homebuyers and students who rely on loans. Federal Reserve Board Chairman Alan Greenspan has highlighted the risks of sustained deficits saying. "History suggests that an abandonment of fiscal discipline will eventually push up interest rates. crowd out capital spending. lower productivity growth. and force harder choices upon us in the future." The U.S. federal deficit is now among the highest in the industrialized world. and our debt level is fast approaching those of other major industrial countries. With the federal debt now close to 40 percent of the Gross Domestic Product. deficits will likely put pressure on the U.S. dollar. As a member of the New Democrat Coalition I have supported a fiscally responsible deficit reduction plan to balance the budget in 10 years. suspend recent tax cuts for the top two tiers of earners. eliminate corporate tax loopholes. prioritize spending and revive budget enforcement mechanisms. such as the PayAsYouGo (PAYGO) provisions which Senate Democrats and Republicans passed to force the government to live within its means. The Senate plan sent alarms through this chamber last week because the Senate Budget Resolution includes genuine PayAsYouGo provisions that can bring fiscal responsibility to the budget. The House Budget Committees version betrays the budgetary spirit of PayAsYouGo because it enforces budgetary constraints on entitlement programs but not tax cuts. Tell me Mr. Chairman how this unbalanced approach to the budget will eventually lead to a balanced budget. The President visited my district a few weeks ago and during a speech about the economy never once did he mention the $7 trillion dollar debt or the record deficit this country now faces. Never once did he mention the potential for harm and devastation that rising interest rates pose for small businesses and exporters in my district. And not once did he mention any one of the 2.6 million jobs lost throughout the country since 2000. We cannot continue to ignore the implications of our fiscal irresponsibility. By failing to mention these concerns. the President has forgone all responsibility for addressing them. So in closing. I urge my colleagues to take up the responsibility thrown off by our leadership. Defeat the Republican House Budget Resolution because it fails to implement meaningful budgetary mechanisms that will bririg this budget into balance.