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Congressional Record—Senate S8742 S8742 CONGRESSIONAL RECORD — SENATE December 17, 2015 be increased in spending for whatever Finally, these aren’t really tax cuts. Mr. MANCHIN. Madam President, my purpose had to be paid for. That was Tax cuts are when you lower taxes and colleague and dear friend from Vir- the standard. Everything has to be paid lower expenditures or raise other taxes ginia, Senator WARNER, has worked ex- for. We had to find offsets. Then all of so it is revenue neutral. If you cut tensively on trying to reform our Tax a sudden, we are considering a $680 bil- taxes in a time of deficit, which means Code. We had something called the lion hole in the deficit that doesn’t you have to simply borrow the dif- Simpson-Bowles Commission, which I have to be paid for. It is like we are all ference of what the revenues would think he took the lead on and was very concerned about the debt, except when have been, that is not a tax cut. That much instrumental. What does this do we aren’t. Frankly, as someone who is a tax shift. to give you the chance to basically fix has been here for a fairly short time, I We are simply shifting the taxes from the problems we have with the Tax find this puzzling. The rule ought to ourselves to our children. This bill Code? apply both ways, because tax expendi- should be called the ‘‘tax your grand- Mr. WARNER. It decreases our rev- tures, by the way, are what they are. children act’’ because we are cutting enue line going forward. It does take Republican and Democratic economists our own taxes, but we are borrowing some of the things, particularly in concede that the deductions, loopholes, the money that otherwise would be col- international tax reform, off the table. and changes in the Tax Code are called lected and our kids are going to have There are arguments that some of tax expenditures. That is what they to pay it back at some point with in- these being made permanent may are, because otherwise they would be terest. make it easier. I will give you an ex- revenues to the government. That is unethical. That isn’t right. If ample. The R&D tax credit is some- These are real dollars, and this is 5-year-olds knew what was going on thing that most of us on both sides of what has happened since the Tax Re- and could vote, we would be dead the aisle support. Here is the kind of form Act of 1986, when tax expenditures ducks, because that is who is bearing only-in-Washington math that takes represented about 5 percent of GDP. the burden of these policies. place. We are making permanent the Here we are today, and then the pack- What do we have to do to solve this? R&D tax credit and not paying for it. age we are talking about. We are going In some ways, it is simple and in other Yet, if next year we decided to cut up into this area. This is almost 8 per- ways it is hard. Conceptually it is sim- back on the R&D tax credit, that would cent of GDP. This is a huge outlay that ple. We have to bring expenditures and be viewed as additional revenue to the is like new mandatory spending. It revenues into balance. That means bottom line, even though the cost of it happens automatically. It doesn’t have looking at the whole course of Federal has never been built in. Again, people to be reviewed every year. There is no revenues and also Federal investments, who maybe are watching might say: I assessment of whether these expendi- and we also have to make investments don’t understand that accounting. tures are effective or not, and some of to make our economy grow. Let me assure you: If you ques- them obviously are. The best solution to this deficit prob- tioning that accounting, then welcome I have no problem with many of the lem is a growing economy. But ulti- to Washington, DC, and Federal Gov- items that are in here—mortgage inter- mately for me, this is an issue of eth- ernment accounting and budget lines. est deduction, health care interest de- ical stewardship. Tom Brokaw wrote I think this will make it more chal- duction. But some of them deserve con- the famous book ‘‘The Greatest Gen- lenging. There are some benefits, as I sideration, just as our budgets deserve eration.’’ They fought World War II, said earlier—predictability to our busi- consideration. This is on automatic sacrificed, built the Interstate High- ness community. I would echo what the pilot. This is a kind of new mandatory way System, and built the economy Senator from Maine has said. At the spending. The other piece is that we that we are running on today—the end of the day, we are simply transfer- are deepening the debt hole. This is the greatest generation. ring the obligations from our responsi- percent of GDP of spending, and these I shudder to think what would be the bility to that of our kids and are revenues. This is the deficit. This is case if Tom Brokaw wrote a book grandkids. Long term, that is not the debt. That is what is killing us in about our generation, which is bor- going to give them the same kind of the long run. rowing and is not keeping our infra- country that we all inherited. There is a tremendous interest rate structure up, is not adequately pro- Mr. MANCHIN. As we finish up on risk here—as the Senator from Vir- viding for the common defense, and is the colloquy here, the House is going ginia pointed out. We are now at his- shifting the cost from us to our chil- to vote twice. They are going to vote torically low interest levels. In living dren. That is not stewardship; that is on the extenders bill and the omnibus memory, I don’t know a time when in- intergenerational theft. That is what bill. For the second time, we are going terest rates have been as low as they we are engaged in here. to roll them into one in the Senate. We are. For every point that interest rates We are going to have one vote tomor- will not have the opportunity to vote go up with an $18 trillion debt, the cost row. I intend to vote for the bill be- twice. The omnibus bill is something to the Treasury is $180 billion. The cause I believe in the budget section, that I could have supported. The ex- math isn’t that complicated. If interest but I am very uncomfortable with the tenders bill is absolutely something I rates go up to 5 percent, just interest tax extender section. I don’t have pol- cannot support, for the future of our payments on this $18 trillion debt will icy problems with many of those tax country and our children. It is a shame be $900 billion a year. So 90 percent of extenders. I do have a fundamental that we don’t have a separate vote. our current total discretionary budget problem if they are not paid for. I don’t With that, I thank the Senator from would go to interest payments. It think it is honest for us to go home and Maine and the Senator from Virginia would swamp the defense budget. It say that we cut your taxes when our for this colloquy. would swamp the discretionary budget. grandchildren are going to have to pay With that, we yield the floor. Yet we are tiptoeing along the edge of those bills with interest. The PRESIDING OFFICER. The Sen- this precipice. That is the point that I think needs ator from Arizona. If interest rates go up with an $18 to be made about this, not that we are Mr. MCCAIN. Madam President, I ask trillion debt, we are in real financial going to be able to stop this train that unanimous consent to address the Sen- trouble. The second problem with this is going to be coming through here in ate in morning business and take as huge debt is it gives us no room for the next 24 hours, but that we really much time as I may consume. slack. It gives us no room for an emer- need to talk next year about serious The PRESIDING OFFICER. Without gency, for a recession, for hostilities, tax reform, about trying to balance objection, it is so ordered. for a major terrorist attack and its ef- revenues and expenditures and putting f fect on our economy. We have no cush- this country on a financial path, on a ion because we have used the cushion fiscal path that is sustainable and re- PRESIDENTIAL STRATEGY TO up. We continue to use it up, even when sponsible. DEFEAT ISIL the economy improves. This $18 trillion I yield the floor. Mr. MCCAIN. Madam President, 70 some day is going to have to be paid The PRESIDING OFFICER. The Sen- years ago, a group of American leaders back. ator from West Virginia. forged the rules-based international VerDate Sep 11 2014 06:08 Dec 18, 2015 Jkt 059060 PO 00000 Frm 00010 Fmt 0624 Sfmt 0634 E:\CR\FM\G17DE6.017 S17DEPT1 emcdonald on DSK67QTVN1PROD with SENATE December 17, 2015 CONGRESSIONAL RECORD — SENATE S8743 order out of the ashes of World War II.
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