March 19, 2003 CONGRESSIONAL RECORD — HOUSE H2113 a Support Our Troops rally or a reserv- government. And one can just project, through the ceiling. So it is obvious ist center and say, ‘‘Congressman, I if we continue to spend two and three that sooner or later, and I hope sooner will take my $90,000 tax cut now, and I and sometimes four times the rate of for the sake of our children and our don’t care if veterans have to stand in inflation, then government takes over; grandchildren, that we have to bring longer lines, have shortages of beds or and instead of empowering people in our spending into line so that this can’t get into VA hospitals tomorrow.’’ the United States, instead of empow- curve does not continue to keep going We all want to engage in shared sac- ering businesses to encourage them to up and up and up and soak up more and rifice. We are at a critical time in our expand and develop and offer better more of our gross domestic product. Nation’s history. Our first obligation and more jobs, government has been at has to be to our seniors and those the feeding trough to use more of those Now, I would like to for a few mo- fighting for our freedom in Iraq and dollars by increasing taxes across the ments turn our attention to another other dangerous places in the world. country. curve, another set of curves, and these We cannot cut their beds, their budg- How do we deal with a situation curves are just some detail-building on ets; we cannot balance tax cuts on where we have made our taxes so pro- the curve that the gentleman showed their backs. gressive that the lower-paying 50 per- us. What we have here are three curves. So I am hopeful that the Members of cent of income tax payers in this coun- One of them is the gross Federal debt. this body on both sides of the aisle will try only pay 1 percent of the total in- Now, that is the total amount of review these budgets and get back to come tax revenues. So we can see, it is money which the Federal Government the real priorities of America, taking easy to suggest that any tax cut is a owes, and we will note a line here in care of our senior citizens, taking care tax cut for the rich, since the upper 50 the middle, and that is where we are of our veterans, making sure that we percent pay 99 percent. In fact, the now. We will notice that that goes are meeting our obligations to them, upper 10 percent pay almost 84 percent through this debt line at about $6.4 taking care of our children, and mak- of the total income taxes. So we have trillion. That is the amount of money ing sure that their future is not laced put more and more taxes on higher in- we owe. with deficits and that we are not bal- comes to discourage that kind of effort, ancing budgets on their backs as well. and we have put more and more taxes Now, as a matter of fact, we owe f on business. Really, business taxes are more than that now, but that is the b 1900 a tax that that business, in order to amount of money that we owed on the 20th of last month. This debt keeps FINDING SOLUTIONS FOR survive, has got to pass on to con- growing and growing; and right now REDUCING DEBT sumers in the fashion of increased prices for their particular product. So the Treasury Department is having to The SPEAKER pro tempore (Mr. the increased price we pay for any move monies around so that they can BONNER). Under the Speaker’s an- product we buy, part of that is really a pay their obligations, because we have nounced policy of January 7, 2003, the hidden tax, because you pay it to busi- already exceeded our debt limit ceiling. gentleman from Michigan (Mr. SMITH) ness to pay their tax, and they have to So we need to pass a budget resolution is recognized for 60 minutes as the des- charge a price that is going to allow soon, because buried in that is a mech- ignee of the majority leader. them to survive. anism which will automatically in- Mr. SMITH of Michigan. Mr. Speak- Mr. Speaker, the gentleman from er, tonight I would like to follow up crease the debt limit ceiling to what- Maryland (Mr. BARTLETT) and I have ever monies the budget would have us the previous Special Order by starting been trying to convince Congress on spend for the next year. out with some comments on the budg- both sides ever since we have been here et, on spending, on the tremendous def- of the unfairness of the increased We will notice that all of the expend- icit that we are leaving to our kids. spending that has resulted in increased itures beyond our current date are ex- Then also, I want to, on this eve of the borrowing that is going to end up leav- trapolations. They are just guesses of war, finish up with some concerns that ing our kids a mortgage. I am a farmer. what we are going to be spending in the I have with such countries as France The gentleman from Maryland (Mr. future. But everything to the left of and Germany and Russia, I think put- BARTLETT) is a farmer, plus a scientist; that are the monies that we have ting our kids at a little greater risk. and in the farming community, you try spent, and so those are real numbers. But first let me react to some of the to pay off some of that mortgage so comments that we have been listening Now, this gross Federal debt, which that your kids will have a better more often is referred to as the na- to, that we need to increase spending chance. Well, right now, we are sort of on some of these important items. tional debt, that debt is made up of two pretending that our problems today are subparts. One of those is called the Let me start with the tax cut. When so great that somehow it justifies debt held by the public, and that is the gentleman from Maryland (Mr. going into the huge debt that we are sometimes referred to simply as the BARTLETT) and I first came to this Con- going to leave our kids and our gress in 1993, one of the first events was grandkids. public debt or sometimes it is the Wall a Democratically controlled House and Mr. Speaker, I yield to the gentleman Street debt. Now, that is the debt that Senate; and with a new Democrat from Maryland (Mr. BARTLETT). the Federal Government owes because President, we increased taxes more Mr. BARTLETT of Maryland. Mr. it has bought securities and bonds; and than taxes have ever been increased in Speaker, for the next few moments I because it has sold these securities and the history of this country. The tax would like to continue to direct atten- bonds and so forth, it has gotten money cuts that are being suggested now do tion to the spending curve that the from those. But that is not the only not commence to negate that huge tax gentleman from Michigan (Mr. SMITH) debt that we owe, because we owe an- increase that we had in 1993. But let me was just talking about. If we look at other debt which we see started out talk about trying to attract more vot- that curve, we will see that it goes up fairly low and has now been increasing ers by suggesting that Congress should ever and ever steeper. Now, the gen- more and more; and this also, as we spend more money. tleman from Michigan (Mr. SMITH) see, is an exponential kind of a curve, For a moment, look at what has hap- talked about a pretty steady 7.5 per- and we will understand why in a mo- pened over the last 10 years of spending cent increase. ment. This is a debt held by govern- history. This is how much we have Now, one would think with a steady ment accounts, it says here. A simpler been increasing spending. As my col- increase that we ought to have a curve way to understand that debt is that leagues can see, fairly level, and it that is going up at the same rate, but that is the trust fund surplus debt. started to go up more and more in 1995, it does not do that. This is a phe- That is the debt we owe to trust funds 1996, and 1997, and started taking off in nomenon called the ‘‘exponential 1998. Discretionary spending of the curve.’’ Every time we have an interest which have accumulated surpluses. United States has increased an average rate like this or a growth rate like Now, how do we have trust funds that of 6.3 percent each year since 1996 and that, the curve will go up ever steeper are accumulating surpluses? That is 7.7 percent each year since budget bal- and steeper. Now, it is obvious when we because we are taking monies from the ance was reached in 1998, showing a look at that curve, it cannot continue paychecks of people and putting it in tremendous increase in the growth of because pretty soon it will go right trust for them, presumably putting it

VerDate Dec 13 2002 04:23 Mar 20, 2003 Jkt 019060 PO 00000 Frm 00157 Fmt 7634 Sfmt 0634 E:\CR\FM\K19MR7.156 H19PT1 H2114 CONGRESSIONAL RECORD — HOUSE March 19, 2003 in trust for them, so that the money Now, for about 4 or 5 years, Wash- board. In effect, it encourages savings, will be there later on when they need it ington is telling us that we had sur- encourages investment, encourages and they are retired, like Social Secu- pluses and we were balancing the budg- businesses to expand. rity, like Medicare, like civil service et. But I want my colleagues to take a So we have to end up making that de- retirement, like railroad retirement. look at this gross Federal debt, or the cision: Are we going to borrow money There are about 50-some of these trust national debt, and notice there never to pay our way, or are we going to in- funds, and this year we will have about was a moment in time when that debt crease taxes to pay our way? I suggest $191 billion surpluses in these trust went down. It kind of flattened out that there are a lot of expenditures of funds. here, we notice; and now it has really government, and, in fact, this budget, Now, more than three-fourths of all picked up the last couple of years. But the budget that the Committee on the of that surplus is in the Social Secu- there never was a time when it went Budget turned out, says, let us look for rity trust fund, and it is good there is down. waste and fraud and abuse, and figure such a big surplus there, because dur- Now, the budget that was balanced is that we are going to put the responsi- ing the retirement of the baby what Washington calls the ‘‘unified bility on the different departments of boomers, we are going to run enormous budget.’’ That is all the money that government to seek out that waste and deficits in Social Security if we do not comes into Washington and all of the fraud and abuse. do something to fix that problem. But money that Washington checks out. Already we have identified more than that is a discussion for another But about 10 percent of the money that enough to accommodate that 1 percent; evening. comes into Washington is money that to say, look, across the board we are at Mr. SMITH of Michigan. Mr. Speak- they have taken from our citizens, pre- least going to have a 1 percent reduc- er, on the definition of surplus, we say sumably to put in trust for our citi- tion in this time of war, so we can ade- the trust funds have surplus; but actu- zens, but instead of putting it in trust quately make sure that we can ade- ally, what they have is IOUs, so when for our citizens, we print IOUs and put quately fund the military budget, the programs like Medicare become insol- that in what should be the trust fund, homeland defense budget. Those have vent or have less money coming in and then we spend that money. So that been increased at the President’s re- than enough to pay promised benefits now it accumulates a debt here. quest, suggestion, in both of those in 2012, or when the money coming in Now, for every dollar that we took areas. Where we have cut back is in from Social Security taxes is less than out of the trust fund debt to pay down other areas. what is adequate to pay promised bene- the public debt, and that is when they If we are in a time of war, is it not fits for Social Security in 2017, all we say we had a surplus and the debt was reasonable to start prioritizing our have when we go to that box is a bunch going down, that debt did go down. We spending, especially since that kind of of IOUs. can see it here. traditional increased spending as if So what is government going to do to Mr. SMITH of Michigan. But maybe there is no problem, do more for this pay back those IOUs? They are going an analogy, sort of like using one cred- group, more for that group, do more for to increase taxes again, or they are it card to pay off another credit card. the old, do more for the young, have going to cut benefits, or they are going So we borrow money from the trust midnight basketball games so kids do to probably, most likely, increase bor- funds to pay down the public debt, and not get in trouble, that is the kind of rowing again. So they go again and bid then a lot of politicians in Washington spending rampage that we have been up the available money and borrow brag that we are paying down the pub- on. that money to pay back to make sure lic debt of the United States, and with What I am suggesting and what the we pay Social Security benefits. But muscle-flexing and suggesting that we gentleman from Maryland is sug- even then, by the mid-2030s, the trust are going to put the Social Security gesting is that that kind of spending funds are going to be gone and the in- money in a lockbox, and that lockbox that ends up having a deficit, let me solvency of many of these programs is was again nothing but IOUs where the define my definition for deficit, deficit going to be devastating in terms of the government took the money and used is the annual overspending. Debt is burden that it puts on our kids. it for a couple of years to pay down the when you take that annual over- Mr. BARTLETT of Maryland. Mr. debt or the Wall Street debt or the debt spending and add it up to the debt that Speaker, that is exactly right. And held by the public. That kind of hood- we have for our kids and our grandkids. that is why these are shown as debt. winking I think has brought about a Mr. Speaker, I yield to the gentleman Because although there are surpluses lot of suspicion of the American people from Maryland (Mr. BARTLETT). in the trust funds, as the gentleman with their Congress and with the White Mr. BARTLETT of Maryland. The from Michigan (Mr. SMITH) points out, House and with Washington. gentleman mentioned lockboxes, Mr. there are no monies in the trust funds. Again, if we look at the tremendous Speaker. It might be wise to spend a Because we have a computer in Wash- growth, how fast we have increased few moments talking about lockboxes. ington which, when we take some spending of the Federal Government, if We have not heard lockboxes men- money from your paycheck, presum- we simply went back to where we were tioned in the last several months. That ably put in trust for you, it only mo- 7 years ago, we would have a huge sur- is because we now have no surpluses. mentarily goes in trust for you, and plus on both the Social Security as In terms of the national debt, we then we almost immediately take that well as the extra money coming in never had any surpluses. We had sur- money out; and in its place we put a from taxes. pluses in terms of the unified budget; nonnegotiable bond in there. It is a So it is a situation I think where we but when the unified budget was bal- nonnegotiable security; that is, we can- have to ask ourselves the question, Do anced, the national debt was still going not negotiate it. It is only a security we want to reduce the debt that we are up almost $200 billion a year. That is that can be redeemed by the Federal leaving to our kids? Do we want to do because it was about $200 billion a year Government. When the time comes to that by increasing taxes? And that is of trust fund monies that we were tak- redeem that, as the gentleman from what the Democrat substitute proposal ing and spending. Michigan points out, our children are for the budget does; they increase What were the lockboxes? They were then going to have to either increase taxes. talked about a whole lot and were very taxes to get the money or borrow the popular. What were they, and what did money and pass that debt on to their b 1915 they do? children. I hope they do not do that, They say, we will go along with the The first lockbox was the Social Se- because I am ashamed that we are tax breaks for the lower-income; curity lockbox. What that legislation passing this debt on to our children. which, as I mentioned before, does not said was that if there is a surplus in As we can see, in a few years, in a few represent very much of the tax revenue Social Security, and of course there is years, the debt owed to these trust coming into the government. But they a surplus, and will be for 10 or 12 years funds is going to exceed the debt that say, we are not going to go along with in Social Security, if there is a surplus we owe to what we generally call the the legislation that we passed 2 years in Social Security, we cannot use that Wall Street debt or the public debt. ago that gives tax breaks across the for ordinary spending; we have to use it

VerDate Dec 13 2002 02:43 Mar 20, 2003 Jkt 019060 PO 00000 Frm 00158 Fmt 7634 Sfmt 0634 E:\CR\FM\K19MR7.158 H19PT1 March 19, 2003 CONGRESSIONAL RECORD — HOUSE H2115 to pay down the debt. The only debt we can we do to encourage our businesses need to do so that we not only keep could pay down with that is this public to invest and expand and have more these businesses in this country, but debt, so what they did was to take the and better jobs in this country? we attract other businesses to this monies out of the trust fund and to pay The other tax cuts, some of the other country? down the public debt, but for every $1 tax cuts, potential tax cuts, maybe Do Members not think that that is of public debt they paid down, they in- should not be considered now; but let the question we really ought to be ask- curred another $1 of trust fund debt. us at least look at the kind of tax in- ing here? Notice what is happening to these centives that can encourage savings Mr. SMITH of Michigan. Mr. Speak- curves. As this one went down, that is and investment and business expan- er, a survey was done of the businesses the public debt we are paying down, sion. that inverted or moved to another the trust fund debt went up, so the net Mr. BARTLETT of Maryland. The country to pay their lower tax rate, effect on the debt was zero. gentleman mentioned business taxes, but kept their jobs and their oper- There was another smaller trust fund and the fact that businesses really pass ations in this country. that was included in the lockbox, and that tax on. I would just like to con- A survey was taken, and for over half that is the Medicare Trust Fund. We centrate on that for a moment. of those companies it was a question of did the same thing with that. But there In a very real sense, we cannot tax a going out of business or reducing their were 40 or 50 other trust funds that we business, because that simply becomes expenses and taxes, one of the ex- did not have a lockbox for. They did part of the cost of doing business. If penses, reducing that expense by not amount to a whole lot, but we hap- the business is going to remain in busi- roughly 17 percent that we overcharge pily took them and spent them. When ness, if that company is going to re- compared to other countries, by mov- we did that, of course, even though we main in business, they have to pass ing their business overseas. were advertising a balanced budget on that tax on or they cannot remain in So absolutely, rather than the sug- the unified budget, the total debt that business. gestion in the Democratic budget that we owed, the national debt, here called I would like to make the argument, says let us punish those businesses that the gross Federal debt, kept going up which I think is pretty hard to refute, move their headquarters and their tax- and up. Obviously, we should not con- that business taxes are probably the ing location outside of this country by tinue to do this forever. most regressive tax we have. I know saying that they cannot move or else By the way, the gentleman from my liberal friends are very fond of busi- they lose a lot of the benefits, and we Michigan (Mr. SMITH) mentioned ness tax, and they would like to in- are not going to buy from them for spending. The question is always crease it. I am not sure they have military use, and we are going to pun- asked, if we spend more money for this thought through what happens when ish them anyway in some form of addi- group or more money on that program, we increase business taxes. tional taxes to discourage their moving will it help more people? Of course, the Whenever we tax a business, it has to out of this country, absolutely, I say to answer is always, yes. If we spend more add the cost of that to their goods and the gentleman from Maryland, the money, it will help more people. But I services. Now, there is no deduction for right decision is that we cannot put would submit, Mr. Speaker, that that that and no exemption from it. So the our businesses at a competitive dis- is the wrong question. The question poorest of the poor, when they go to advantage because of our gluttony to that needs to be asked is, will spending buy the services or the products of a somehow raise more money through more money on that program help business, have to pay more for that what I call a hidden tax, a very regres- more people than if we left that money service or product because we tax the sive tax like the gentleman suggests; in the private sector? business. because it says that the lower-income Money left in the private sector also There is another way in which busi- person that has to buy these goods has helps people because it creates capital ness taxes are very regressive and hurt to pay a tax on this, they have to pay for creating new businesses and new people, particularly poor people. An- the extra price on the goods to accom- jobs. In those, government revenues other thing that happens when we tax modate the high taxes that we have will grow. The question we really need a business is that we have increased imposed on business. to be asking, whenever there is a sug- their cost of doing business; so now It is not so, what is the good word, gestion that we increase a current pro- that makes them less competitive with identifiable because it is not so obvious gram, is will increasing that program firms in other countries, and they may, that people are paying another tax to do people more good than saving that in fact, not be able to continue doing government when they buy this prod- money and leaving it in the private business here, and those jobs may end uct. It is sort of a hidden tax that has sector, where it will create jobs for up somewhere else in the world, more been politically an advantage, some people who will then have an increased and more frequently on the Pacific people felt; but in the long run it dis- standard of living and who will pay Rim. courages business expansion, and it dis- more income tax, and Federal revenues There are some companies today, I courages the kind of economy and the will go up, and our economy will grow? say to the gentleman from Maryland kind of strongest economy in the world But we never in this Chamber ask the (Mr. SMITH), that are doing something that we have developed in our first 226 right question. The question we always that we call inversions. A company, years. ask is, will more money help more peo- when they look at the regulations that So absolutely, it is the wrong way to ple? Of course it will. govern them here, when they look at go. What we should be doing is making Mr. SMITH of Michigan. Mr. Speak- the taxes here, they say, we just can- our taxes competitive with the taxes in er, when we say leave it in the private not stay in business in this climate, so other States, and part of the way to do sector, we say leave it in the pockets of what we are going to do is move our that is to hold the line on spending. the individuals that earned it. Do not headquarters overseas to some island When the complaint is of cutting have the kind of taxes on businesses offshore or something like that. We are spending by 1 percent, the previous spe- that put our businesses at a competi- going to continue our major operations cial order suggested that Republicans tive disadvantage to businesses that here, but for tax and regulatory pur- are suggesting a 1 percent cut, no cut. they are competing with in other coun- poses, we are going to move our head- What it is is a slowdown in the increase tries. quarters overseas somewhere. in spending. Where I come from down That is what we do. Right now we are The question we are asking ourselves on the farm, a cut is when there is less charging our businesses about 18 per- is, how can we punish those people? I money spent one year than the pre- cent more tax than the businesses in think that is exactly the wrong ques- vious year. the other G–7 countries, in the other tion. The question we ought to be ask- Mr. BARTLETT of Maryland. Mr. industrialized countries. So when we ing is, why are they leaving this coun- Speaker, I say to the gentleman from talk about this, the tax changes that try? What is there about our regu- Maryland (Mr. SMITH), there is a good the President is suggesting that are in- latory climate, what is there about our analogy of this that helps us under- corporated in this budget, what can we tax structure that is forcing these busi- stand what these Washington cuts are do to strengthen the economy? What nesses out of this country? What do we that are really not cuts. We have big

VerDate Dec 13 2002 02:43 Mar 20, 2003 Jkt 019060 PO 00000 Frm 00159 Fmt 7634 Sfmt 0634 E:\CR\FM\K19MR7.160 H19PT1 H2116 CONGRESSIONAL RECORD — HOUSE March 19, 2003 cuts, and we are spending more money ment because we are funding that. And If you are in the average community, next year than we did last year in spite I think it is reasonable to borrow more go out on the street and walk around of a cut. money to fund that effort to make sure and look at every fourth person you It is like our son comes to us, and we our military are well equipped to the meet. They work for government at are giving him a $5 allowance, and he best possible degree because we cer- some level. comes and says, I would like a $10 al- tainly are going to support them. And Now, I would submit that the average lowance. But we say, gee, $10 is a little I think everybody is going to do that. American thinks that is just too much much. Suppose we give you a $7 allow- But for the other spending, let us not government. And if we could resurrect ance? So now the son goes and tells his do business as usual. Let us start look- our Founding Fathers and have them friend, I just had my allowance cut by ing at the budget. Let us start see where we are, they would be ap- $3. Obviously the allowance went from prioritizing. Let us start slowing down palled at what we have done to the $5 up to $7, it went up $2; but relative the growth of a lot of government and dream that they had for this country, to his anticipation, his hope that it let us start paying attention to a lot of where they envisioned a very limited might be $10, he now has a cut. fraud and abuse. Federal Government, where essentially Most of Washington’s cuts are those In fact, just in Medicare alone, GAO all of the rights and all of the respon- kinds of cuts. They are simply a cut in estimates that in 1 year there is prob- sibilities stayed with the citizens in the increase in the rate of spending, in- ably fraud that amounts to between $17 the private sector. We have come an creased rate of spending; they are not a and $19 billion. And when you are awful long way from that dream, have cut, or are almost never. Just look at spending somebody else’s money, it is we not? these curves. Almost never do we spend easy to waste some of that money. So Mr. SMITH of Michigan. Mr. Speak- less money this year than we spent last there needs to be the kind of pressure er, let me give you an example of a year. So be careful that people define that this body can put on the different young married couple that have two very carefully what they mean by a cut bureaucracies to make them look very kids in my congressional district in in Washington, because most of the carefully at how they are spending that Michigan. And they were working. time it is, in fact, not a cut; it is sim- money and reduce some of that waste- They had one job. The husband decided ply not as big a rate of increase as they ful spending. to provide more money for the family. would like to have seen. Mr. BARTLETT of Maryland. Mr. He would go and take at least a half All of the cuts we hear my friends on Speaker, the gentleman talked about shift for a second job. And so he was the other side of the aisle talking hidden taxes. I would like to talk about upset when he learned that not only about in our budget are that kind of the biggest hidden tax of all that most does he have to pay more taxes, but cut. As far as I know, essentially noth- Americans are completely oblivious to. under our Tax Code, he was shoved for ing is being cut in the budget. We hope Now, if this year is like last year, that additional earning into a higher to cut the rate of increase of some of May 10 will be a very special day be- tax bracket. So we said, look, if you these programs, but as far as I know, cause that will be Tax Freedom Day. are going to go out and get a second essentially nothing is being cut. That will be the day that you have fin- job and earn more money, not only do Mr. SMITH of Michigan. Mr. Speak- ished working so that you can pay all you have to pay the taxes, the in- er, let us discuss just a little what the of our Federal, State and local taxes. creased taxes because of increased imposition that this increased debt Now that is quite some weeks for now earnings, but we are going to tax you that we are leaving our future genera- so you are still working to pay Federal, more because you went out and worked tions has on the potential of those gen- State and local taxes and will until harder to do that second job to have erations to have a strong economy or May 10 of this year, if this year is like more income. strong incomes that they are going to last year. So we have a Tax Code that in many be able to keep and raise their families But on May 11 you are not going to ways discourages what made this coun- with. be able to work for your family to buy try great. And, of course, our Founding Right now, servicing the debt, and that car or pay something on that tui- Fathers, I agree with the gentleman, $6.4 trillion is our current debt, serv- tion bill or to make a mortgage pay- would be very upset because we have a icing that debt costs approximately ments on your home. Because for the Constitution and a Bill of Rights that $300 billion a year; but interest rates next 7 weeks, right at 7 weeks, until in effect says that those people that are at record lows right now. So with July 6 every American is going to have use that learning, that try, that work interest rates, with the government to work to pay the cruelest tax of all. hard, that save and invest end up bet- able to borrow some of their money for It is a hidden tax which is a very re- ter off than those that do not. about 2.7 percent, what if that interest gressive tax, and by the way it is a fa- And what we have been slipping into rate goes up? What about when we have vorite tax of my liberal friends. But it for the last 30 years is a more socialis- economic recovery and there is a great- is the most regressive tax we have be- tic system where we say if you go out er demand for money? cause the poorest of the poor have to and work harder and save and invest That interest rate, the interest rate pay that tax. They get no exemption and try and earn more money, we are in the early 1980s, was as high as 17 per- from the tax. They can get no deduc- going to really hit you with high taxes cent; so what if that $300 billion a year tions from it. And what is this tax, this because after all, we need to give, we paying interest were to quadruple be- big hidden tax that consumes 7 weeks need to give some of this money to peo- cause of higher interest rates in the fu- of the working time of every Amer- ple that need it more, that maybe are ture? It would devastate those people ican? It is unfunded Federal mandates. unlucky, that maybe did not save and that are trying to service that huge Now, that is a mouthful, but let us invest. But our system has worked very debt in the next generation, or years point out what that is. It is a law well not because we are stronger or from now. which we passed in this Congress and, smarter. It is because we have had the boy, are we fond of doing this, a law incentive that those that really make b 1930 which we pass in this Congress which the effort and try and invest and save Mr. SMITH of Michigan. Also, some- causes a State government or a county and learn and use that education end time, someplace, somehow future Con- government or a city government or a off better than those that do not. gresses are going to start thinking that business or your family to spend And so to change that around and we have to operate more like a family, money that we do not provide. In other say, look, if you are going to be suc- more like a business, that someplace words, it is a mandate; but we do not cessful, we are going to punish you down the roads we have to start paying provide any money for the mandate so more, is not what is going to keep us this debt down. Nobody is talking it is an unfunded Federal mandate. And the strongest economy in the world. about paying the debt down. All they that consumes the working time of Mr. BARTLETT of Maryland. Mr. are talking about is, well, maybe the every American for just about 7 weeks Speaker, I would like to come back for debt right now is manageable and let out of the year. So you spend about 52 a moment to look a little bit more at us put the war on terrorism or what- percent of your time working to sup- these trust fund surpluses and the debt ever happens in Iraq aside for a mo- port government. that we owe to this trust fund which is

VerDate Dec 13 2002 02:43 Mar 20, 2003 Jkt 019060 PO 00000 Frm 00160 Fmt 7634 Sfmt 0634 E:\CR\FM\K19MR7.162 H19PT1 March 19, 2003 CONGRESSIONAL RECORD — HOUSE H2117 big and going to get bigger and bigger. BARTLETT) for joining me tonight in b 1945 One observation is that our law re- this Special Order. And I would like to In 1995, when there was an effort in quires that we accumulate this. I say begin with some of my particular con- the U.N. Security Council finding Sad- that because the only thing we can do cerns on the war on Iraq and, of course, dam in material breach, France op- with these surpluses by law is to invest the 48 hours are up now; and that posed it. In 1996, when there was an ef- them in nonnegotiable U.S. securities. means in the next several days I pre- fort to pass a resolution condemning I cannot imagine money laying sume there is going to be a more mili- Saddam Hussein for his slaughter of around Washington that we do not tary aggressive insistence that Saddam the Kurds, France opposed it. In 1997, spend. And so if it is invested in non- Hussein gives up those weapons of mass when there was an effort to block trav- negotiable U.S. securities, we are going destruction. el by Saddam’s intelligence and mili- to spend it. Let me start out by saying that tary officials, France opposed it. In Bonnie, my wife, and I will be remem- Now, the fact that we took monies 1998, France announced that Iraq was bering our troops every night in our from these trust funds and paid down free of all weapons of mass destruction, prayers and I hope, Mr. Speaker, that for a little while some of the publicly something that nobody believed and everybody in America does the same. held debt, that did a very nice thing for France does not believe today. In 1999, These are the best soldiers in the us today. What it did was to reduce our of course, they opposed the creation of world. They are courageous defenders demand for money in the marketplace, UNMOVIC, the existing inspection re- of our freedom and worthy representa- and that competition dropped interest gime that they now want to say is tives of the United States of America. rates probably by about 2 percent. So where we should go and just let them I think it has been regrettable that the home you are buying costs you less keep going and keep looking. Of course some countries that have traditionally per month. The car you are buying last month, they vowed to veto any been U.S. allies have not been able to costs you less per month. The tuition resolution authorizing force to disarm join our coalition to rid Saddam Hus- payments you are making for the debt Iraq of weapons of mass destruction. sein of devastating weapons. for your children or your debt if you Let me say again. France’s opposi- I am told that I cannot swear on the went to school and you are now paying tion to the U.N. resolution sought by floor of the House, but I am as mad as it off that cost you have is less. the President and Prime Minister Tony Hades about France’s actions. France, But the flip side of that is that what Blair appears to have been based some- we are accumulating here is the largest which the U.S. liberated in World War II, has gone as far as to use its veto to what on business considerations. Sad- intergenerational debt transfer in the dam Hussein, no matter what he has history of the world. And although we block any U.N. approval of any resolu- tion to support the coalition that done to his own people, no matter what are living better today because we are would have insisted on the disar- threat he poses to his neighbors or the taking these trust fund surpluses and mament of Iraq. I think this is unfortu- world, has been someone France has spending them and, therefore, we are nate because they have resulted in put- been able to do business with, and not borrowing as much in the market- ting our young men and women sol- France has certainly not been the only place, our kids and our grandkids are diers at risk. We should not be under country. But one of our dignitaries really going to have to pay for this. Be- any illusion that France is acting on suggested that France has sort of acted cause when it comes their time to run its, at least in part, narrow self-inter- over the last dozen of so years like the this government, we cannot run it on est. The French want a prominent role legal counsel for Saddam Hussein. So I current revenues. So what we are doing on the world stage, and they seem to am concerned about their motivation. is borrowing from their generation. delight in cutting down the United Here again, there are other countries. When it comes their time to run the States. But even more importantly, We can see that both Germany and government, not only are they going to they want to defend some of their prof- Russia have extensive dealings with have to run the government on current itable extensive contracts and trade re- Iraq that call their motives into ques- revenues, but they are going to have to lationships that they have bargained tion, as far as I am concerned. In Ger- pay back all of the money that we bor- with Saddam Hussein and Iraq. many’s case, direct trade between Ger- rowed from their generation. Let me list a few of those interests. many and Iraq amounts to about $350 Now, when I first ran for Congress 11 According to the CIA World Fact Book, million every year, and another $1 bil- years ago, I promised I was going to France produces over 22.5 percent of lion is reportedly sold through third conduct myself so that my kids and my Iraq’s imports. In 2001 France became parties. grandkids would not come and spit on Iraq’s largest European trading part- It has recently been reported that my grave because of what I had done to ner. Roughly 60 French companies do Saddam Hussein has ordered Iraqi do- their country. I say to the gentleman, an estimated $1.5 billion in trade with mestic businesses to show preference to I am trying to do that; but I am not Bagdad annually under the U.N. Oil for German companies as a reward for Ger- getting as much help here as I hoped I Food Program. France’s largest oil many’s firm positive stand in rejecting would get when I came here 11 years company, Total Fina Elf, has nego- the launching of a military attack ago. tiated a deal to develop one of the against Iraq. It was also reported that Mr. SMITH of Michigan. Because, Mr. world’s major oil fields, the Majnoon over 101 German companies were Speaker, it is tempting for politicians field, in western Iraq. The Majnoon present at the Baghdad annual expo- to come up with more programs, to field purportedly contains up to 30 bil- sition. During the 35th annual Baghdad have more pork barrel projects because lion barrels of oil. International Fair just 4 months ago, a the news media puts them on the front Total Fina Elf also negotiated a deal German company signed a contract for page, the television covers them cut- for future oil explorations in Iraq’s $80 million for 5,000 cars and spare ting the ribbon for the new jogging Nahr Umar field. Both the Majnoon parts. In 2002, DaimlerChrysler was trail. So what has happened is you in- and Nahr Umar fields are estimated to awarded over $13 million in contracts crease the probability that you are contain as much as 25 percent of Iraq’s for German trucks and also spare going to get reelected if you come up oil reserves. France’s Alcatel Company, parts. with new programs to help someone a major telecom firm, is negotiating a German officials are investigating a with their problems. And once you $76 million contract to rehabilitate German corporation accused of ille- start spending, if you spend that Iraq’s telephone system. gally channeling weapons to Iraq via money for a certain project or a cer- From 1981 to the year 2001, according Jordan. The equipment in question is tain arena for a couple of years, it al- to the Stockholm International Peace used for boring the barrels of large can- most becomes an entitlement because Research Institute, France was respon- nons and is allegedly intended for Sad- they develop the interest and they hire sible for over 13 percent of Iraq’s arms dam Hussein’s Al Fao supercannon a lobbyist that starts saying, boy, we imports. Selling military equipment project. are really going to scold you if you de- and arms to Iraq. And this is not a new Russia, too, has extensive dealings cide not to continue our funding. position for France. It has consistently with Iraq that it wants to protect. For Mr. Speaker, I would like to thank blocked attempts to bring Iraq into ac- example, according to the CIA World the gentleman from Maryland (Mr. count since the Gulf War in 1991. Factbook, Russia controls roughly 5.8

VerDate Dec 13 2002 02:43 Mar 20, 2003 Jkt 019060 PO 00000 Frm 00161 Fmt 7634 Sfmt 0634 E:\CR\FM\K19MR7.164 H19PT1 H2118 CONGRESSIONAL RECORD — HOUSE March 19, 2003 percent of Iraq’s annual imports. Under rants as dictators that might decide, diers whose roles are pretty well de- the U.N. oil for food program, Russia’s well, Iraq got away with it and they fined, and I would like to point out total trade with Iraq was somewhere were able to do great bargaining for that we in the Congress have a duty as between $530 million and $1 billion for themselves. If we develop these weap- well, a constitutional duty, that re- the 6 months ending in December 2001. ons, then we are going to be in better quires under the Constitution that we According to the Russian Ambassador shape to threaten, coerce, blackmail, if alone can decide war. And why is that? to Iraq, Vladimir Titorenko, new con- you will, for better deals for our coun- Because of Article I, section 8. It is im- tracts worth another $200 million under try. portant for us to note that this duty is the U.N. oil for food program are to be The challenge ahead is great. The nondelegable. We cannot pass it off. We signed over in the next 3 months. So- technology and the ability of many of cannot turn it back. It can only be viet-era debt, someplace between $7- these countries to develop these kind done by us. So the question of who de- and $9-billion was generated by arms of devastating weapons is now avail- cides becomes very important. sales to Iraq during the 1980 to 1988 able, almost on the Internet. So I think On this past Monday, the President Iran-Iraq war. Our soldiers will have to today it is so important that we of the United States said he has de- face many of these weapons on the bat- strongly support our military troops, cided that he will begin this war, and tlefield in the coming days. that we thank the 30 to 50 countries that this is a matter that did not re- Russia’s LUKoil negotiated a $4 bil- that have decided, according to Sec- quire him to consult with Congress, lion, 23-year contract in 1997 to reha- retary Powell, to support us in this ef- that there was no debate in the Con- bilitate the 15-billion-barrel West fort. Maybe this is the beginning, but gress, that it was a matter that he has Qurna field in southern Iraq. Work on the United States has taken on this re- been telling us in innumerable ways on the oilfield was expected to commence sponsibility. In past actions through innumerable occasions precisely what upon cancellation of U.N. sanctions on World War I, World War II, all of our he was going to do, and that Saddam Iraq. The deal is currently on hold, ob- wars, the Korean War, even Vietnam, Hussein’s time has run out, and there viously. they were all for good humanitarian are no more options, and that negotia- In October of 2001, Salvneft, a Rus- reasons, to make sure that freedom and tions are futile, and that the United sian-Belarus company, negotiated a $52 justice and the rights of people were Nations can do what they want, that million service contract to drill at the helped throughout the world. That is everybody has to decide in the family Tuba field in southern Iraq. In April of part of what we are going to be going of nations, that they are either with us 2001, a Russian company received a after in the next few days, to try to or against us, and that it does not mat- service contract to drill in the Saddam, make sure that not only these weapons ter whether the inspection regime re- Kirkuk, and Bai Hassan fields to reha- in Iraq are disassembled and destroyed, quired by the United Nations has been bilitate the fields and reduce water in- but that we keep other countries from concluded or not. cursion. making the same effort and having the b 2000 A future $40 billion Iraqi-Russian same threat on our liberty and free- dom. It does not matter whether the economic agreement, reportedly signed United Nations approves or dis- in 2002, would allow for extensive oil f approves. He has decided what he will exploration opportunities throughout REPORT ON UNITED STATES PAR- do, and he is going to do it. Why war? western Iraq. The proposal calls for 67 TICIPATION IN THE UNITED NA- And why now? A war could be justified new projects over a 10-year time frame TIONS—MESSAGE FROM THE only if our national security is threat- to explore and further develop fields in PRESIDENT OF THE UNITED ened. There has not been the case made southern Iraq and the Western Desert, STATES that that is the present circumstance, including the Suba, Luhais and the and it of course has to be weighed very West Qurna and Rumaila projects. Ad- The SPEAKER pro tempore (Mr. SMITH of Michigan) laid before the carefully against the death and the de- ditional projects added to the deal in- struction not only that we put in our clude second phase construction of a House the following message from the President of the United States; which own military’s path but also the inno- pipeline running from southern to was read and, together with the accom- cent people in another country who northern Iraq, and extensive drilling panying papers, without objection, re- will likely be killed in the course of and gas projects. Work on these ferred to the Committee on Inter- this activity. And of course none of projects would commence on cancella- national Relations: this has been debated by the Congress. tion of sanctions. But what about the tactics of the 43rd One Russian company over the past To the Congress of the United States: I am pleased to transmit herewith a President of the United States? He has few years has signed contracts worth report prepared by my Administration repeated on more than one occasion $18 million to repair gas stations in on the participation of the United that war is the last resort. ‘‘My last re- Iraq. The former Soviet Union was the States in the United Nations and its af- sort,’’ when everyone knows that it is premier supplier of Iraqi arms. From filiated agencies during the calendar his first objective. How can he be de- 1981 to 2001, Russia supplied Iraq with year 2001. The report is required by the claring that war is the last resort, that 50 percent of its arms. United Nations Participation Act (Pub- he has exhausted negotiation when ac- It is important, Mr. Speaker, for us lic Law 264, 79th Congress). tually he is short-circuiting the whole to understand who our friends are in GEORGE W. BUSH. process? the world and how they make their de- THE WHITE HOUSE, March 19, 2003. And then we have the coalition, the cisions. The negotiations over this U.N. fig leaf coalition of the willing, which f resolution has been, I think, a certain bears not that much analysis. Who lesson on this topic. It is one that will CONGRESSIONAL DUTIES IN CON- they are and why they are there speaks not easily or not quickly, I hope, be NECTION WITH CIRCUMSTANCES generally for itself. And then of course forgotten. The challenges ahead of us SURROUNDING IRAQ we have the central issue here that are great, but make no mistake. If Sad- The SPEAKER pro tempore. Under there is no compelling evidence that dam Hussein were to succeed in devel- the Speaker’s announced policy of Jan- Iraq is a current threat to our national oping, in keeping these weapons of uary 7, 2003, the gentleman from Michi- security. None. We waited for the mass destruction, the chemical weap- gan (Mr. CONYERS) is recognized for 60 grainy photos of the Secretary of State ons, the biologic catastrophes that minutes. when he was supposed to have conclu- could come from the biological weap- Mr. CONYERS. Mr. Speaker, I am de- sively made the case. We have waited ons and certainly his efforts over the lighted to come to the floor this for the Secretary of Defense when he years to try to develop atomic weap- evening to continue a very important was supposed to have conclusively ons, if that were to be let go undone, it discussion that deals with our duties made the case. We waited for the Presi- would be tremendously difficult to deal and responsibilities in connection with dent and the Vice President when they with the other problems that the free the circumstances surrounding Iraq. were supposed to have made the case. world is facing in Iran, in North Korea, I begin with a review of the duties It was the Vice President who first an- let alone the rogue nations with ty- that we have. First I pray for our sol- nounced early on that Iraq had nuclear

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