Statement of Congresswoman Nancy Pelosi
March 8, 2001-- | Opposing the Bush Tax Rate Plan (H.R. 3)
"I am concerned about the impact of the Bush tax cut on the overall federal budget. We must not sacrifice investments in education, infrastructure and health, which make our economy stronger, in order to provide excessive tax cuts.
"In 1981, President Reagan passed a major tax cut, increased defense spending drastically, and supported cuts in investments in the American people. His policy marked the beginning of the worst economic downturn since the Great Depression and quadrupled the national debt.
"Over the last eight years, the Clinton Administration has eliminated the budget deficit but we still have a $3.5 trillion national debt. Interest payments on the debt alone cost the United States more than $200 billion a year. A lower national debt means lower interest rates, lower mortgage payments, lower car payments, lower credit card payments, and more jobs. Paying down the national debt will put the U.S. government in the best possible position to meet the Social Security and Medicare needs of future generations, when the retirement of the "Baby Boom" generation places a significant strain on the federal budget.
"Nearly $3 trillion of the $5.6 trillion projected surplus is supposed to be dedicated to Social Security and Medicare. Are the Republicans going to take those funds from Seniors to pay for their tax cut? Increased debt service, farm payments, extending expiring tax credits, and emergency defense and non-defense spending will also need to be accounted for in a responsible budget.
"Unfortunately, the Republican majority has jammed this tax cut through before we even have a budget resolution. Therefore, we are forced to have this debate without any budgetary framework. However, we do know that of the nearly $2 trillion of the surplus that remains after we protect Social Security and Medicare, funding a tax cut must compete with providing a prescription drug benefit for seniors and the modernization of our schools, two of the top priorities of the American people. Do we want to underwrite an unaffordable tax cut at the expense of our children's education and our senior's and veteran's health?"
Print This Story
E-mail This Story
