Thank you for joining us today. Today’s hearing is the first - and likely the only - hearing on HR 1, the Ryan-McConnell tax legislation. And so I thank our witnesses for being here today.
Let me start by providing some historical perspective. In January 2001, when President Bush took over from President Clinton, CBO estimated the total budget surplus for 2002 to 2011 would be $5.6 trillion. But what actually happened during that period? The federal government ran deficits that totaled $6.1 trillion.
What happened when President Clinton left office? In 2001, Republicans cut taxes by $1.3 trillion; in 2003, by $1 trillion; and in 2005, there was the repatriation tax holiday. Each time, like today, the Republicans promised job growth. However, they took us to the casino each time without a win.
So here we go again. The Treasury Department issued a one page analysis of the Republicans’ tax bill on Monday citing 2.9 percent growth. That’s not in line with what we’re hearing from any main stream economists - and fortunately for us, we have two of them with us today.
The reality is tax cuts do not pay for themselves. Even taking into account growth, JCT’s macroeconomic analysis finds that the Republican tax bill will still cost over $1 trillion. And frankly, even the Treasury Department’s one pager also concludes that tax cuts don’t pay for themselves.
I should also note that the 1981 Reagan tax cuts did not pay for themselves either. Like today, they were assuming future spending cuts, which as we know never occurred. We should learn from these past experiences.
We have a million new veterans who we need to care for - and we’re lucky to have a veteran with us today - and our military is committed around the world. We also have thousands of Baby Boomers retiring every day who will begin receiving Social Security and Medicare benefits. We can’t afford another gamble with the Republicans’ tax plans.
Let me conclude by saying that the bottom line is the Ryan-McConnell tax package is a bad deal. It’s a bad deal for the 36 million middle class families who will see their taxes go up; it’s a bad deal for the 13 million Americans who will no longer have healthcare coverage; and it will be an even worse deal for our children and grandchildren who the Republicans have decided will foot the bill for this irresponsible proposal. We can do better.
I would now like to yield to gentle lady from California, our Distinguished Democratic Leader, Ms. Pelosi, for her opening statement.
