Virginia Foxx

Ms. FOXX of North Carolina

Ms. FOXX of North Carolina. Madam Speaker, I yield myself such time as I may consume. Madam Speaker, my colleague on the other side of the aisle said that we have a house on fire and we must do something about it. What this bill does is it gives more gasoline to the arsonist who started the fire. Madam Speaker, I rise in opposition to H.R. 397, a risky, fiscally irresponsible, politically motivated scheme that will negatively impact hardworking Americans and retirees. Union multiemployer pension plans are currently underfunded by $638 billion, and the Pension Benefit Guaranty Corporation, PBGC, which ensures these pensions, has a $54 billion deficit. In other words, workers and retirees won't see the benefits they have been promised because of union and employer negligence. This problem requires a serious, bipartisan response. That is why, historically, Members on both sides of the aisle have worked together on this issue. But last month, when the Education and Labor Committee marked up H.R. 397, committee Republicans were shut out of the debate and denied the opportunity to offer even a single amendment, a highly unfortunate and inappropriate decision. For the first time ever, taxpayers will prop u failing, mismanaged, union-run pension plans. These plans, all 160 of them, can apply for a government loan. There is no limit to the loan amount, and, remarkably, the loans will be completely forgiven if they are unable to be repaid after 29 years. The chairman of the Education and Labor Committee said: ``If you can't pay it back, you can't pay it back.'' So, by the chairman's own admission, we are giving failed union pensions a blank check. What a deal. All the while, H.R. 397 allows plans to continue to promise new benefits, allowing their liabilities to grow. While I strongly oppose what H.R. 397 intends to do, I am equally appalled by what the bill fails to do. This legislation fails to include any reforms that would ensure responsible funding of future benefit promises or prevent a similar situation from recurring. The bill also fails to address the chronic underfunding that plagues the entire union multiemployer system and passively accepts that plan trustees and actuaries may continue to underestimate pension promises-- to the detriment of workers and retirees. In fact, under H.R. 397, the situation could become far worse. The nonpartisan Congressional Budget Office, CBO, now estimates that H.R. 397 could increase the Federal budget deficit by more than $48 billion. But that estimate is based on last-minute, bogus Democrat pay- fors and covers only the bill's first 10 years. If we look at the 30- year scheme created by the bill, we will find a price tag of hundreds of billions of dollars. And remember, it is American taxpayers who are on the hook. Madam Speaker, Congress was set up to be in this position years ago because Democrats and unions and employers knew that Members and the public would feel sorry for the union members who were not taken care of by those they trusted to take care of them. Every Member here should feel angry about being put in this position. H.R. 397 is a fiscally irresponsible and careless approach that will cause far more harm than good. Madam Speaker, I reserve the balance of my time.

Ms. FOXX of North Carolina. Madam Speaker, I yield 2 minutes to the gentleman from South Dakota (Mr. Johnson).

Ms. FOXX of North Carolina. Mr. Speaker, the gentlewoman from Michigan is correct. The union members are not at fault. The union bosses are at fault, and hardworking, nonunion taxpayers should not be bailing out the union bosses for their mistakes. Mr. Speaker, I yield 3 minutes to the gentleman from Tennessee (Mr. David P. Roe).

Ms. FOXX of North Carolina. Madam Speaker, I yield 2 minutes to the gentleman from Wisconsin (Mr. Grothman).

Ms. FOXX of North Carolina. Madam Speaker, I yield 2 minutes to the gentleman from Georgia (Mr. Allen).

Ms. FOXX of North Carolina. Mr. Speaker, I yield 1 minute to the gentleman from Texas (Mr. Wright).

Ms. FOXX of North Carolina. Mr. Speaker, I yield myself the remainder of my time. Mr. Speaker, the bottom line is that retirees and workers in multiemployer union pension plans deserve better than a political statement disguised as a legislative proposal. Advancing this highly flawed bill, which has no chance of being passed in the Senate, will only result in delays rather than solutions for workers and retirees who are so rightfully concerned about the state of their pensions. Mr. Speaker, the individuals in the unions did trust those in charge. They are not at fault for what has happened, but I urge all of my colleagues to join me in opposing H.R. 397, and I yield back the balance of my time.

Ms. FOXX of North Carolina

Ms. FOXX of North Carolina. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in complete opposition to H.R. 582, a radical, risky, and unnecessary bill that puts party politics above the best interests of American workers and their families. Increasing the Federal minimum wage by 107 percent is a harmful and unprecedented mandate that would result in millions of job losses for vulnerable Americans, small business closures, and significant damage to the U.S. economy. A detailed study issued this month by the nonpartisan Congressional Budget Office, CBO, estimates a $15 minimum wage would cause up to 3.7 million lost jobs--3.7 million jobs. One job lost is too many; 3.7 million jobs lost is unconscionable. Those hurt the most by this bill would be female workers, young workers, and those with less than a high school diploma. In our committee earlier this year, we heard testimony from Ms. Simone Barron, a restaurant worker from Seattle, Washington, where the minimum wage has already been raised to $15 per hour. Simone said that, after the city of Seattle raised the minimum wage, her employer moved her from standard a tip line to a service charge model, which resulted in her taking home less pay. Small businesses will also suffer if this far-left policy is implemented. Without the cash reserves or profit margins to absorb the increase in labor costs, small businesses will have a choice of several bad options. Among their choices are laying off workers, raising prices on their customers, replacing workers with robots, or going out of business. The National Federation of Independent Business estimates that businesses with fewer than 500 employees will account for 57 percent of job losses, and businesses with fewer than 100 employees will account for 43 percent of job losses. Still, my Democratic colleagues are trying to sell this radical wage hike by claiming it will redistribute wealth and provide poor Americans with a ``living wage.'' Yet, the CBO predicts that, by 2025, there would be a $9 billion net reduction in family income resulting from a $15 minimum wage. This so-called raise would reduce pay for many American families. Let's not forget, the U.S. economy is booming, and lesser-skilled workers are benefiting. Earlier this month, The Wall Street Journal reported that ``wages are rising at the fastest rate in a decade for lower-skilled workers, and unemployment among less-educated Americans and minorities is near a record low.'' We know from the latest jobs report that progrowth policies like the Republican Tax Cuts and Jobs Act and eliminating unnecessary regulations are raising wages, adding jobs, and reducing unemployment. With 7.3 million unfilled jobs nationwide, job creators know they must offer competitive wages and benefits to attract and retain workers, so it is bewildering that Democrats refuse to acknowledge or celebrate the victories of our present economy and continue to call for socialist policies. Instead, they want to pass this ill-advised legislation, which would wreak havoc on the economic progress we have achieved over the last few years. The cost of living in New York City is much higher than the cost of living in my hometown in North Carolina. With such disparities in the cost of living across the country, mandating a one-size-fits-all wage hike will cause job losses and harm entry-level workers in many regions around the country. Even President Obama's former chairman of economic advisers, Alan Krueger, argued in October 2015 that raising the minimum wage to $15 would ``put us in uncharted waters and risk undesirable and unintended consequences.'' H.R. 582 is deeply irresponsible. Workers, families, small businesses, and the U.S. economy will suffer as a direct result of this drastic mandate. Mr. Speaker, I reserve the balance of my time.

Ms. FOXX of North Carolina. Mr. Speaker, I yield 2 minutes to the gentleman from Pennsylvania (Mr. Thompson).

Ms. FOXX of North Carolina. I yield the gentleman from Pennsylvania an additional 20 seconds.

Ms. FOXX of North Carolina. Mr. Speaker, I yield 2 minutes to the distinguished gentleman from South Carolina (Mr. Rice).

Ms. FOXX of North Carolina. I yield the gentleman from South Carolina an additional 30 seconds.

Ms. FOXX of North Carolina. Mr. Speaker, I yield 2 minutes to the gentleman from Tennessee (Mr. David P. Roe).

Ms. FOXX of North Carolina. Mr. Speaker, I yield myself such time as I may consume. I do agree with one thing one of our colleagues across the aisle said a few minutes ago. We do need to let the American people know what this House is about to do; kill millions of jobs. The CBO's estimate was that 1.3 million jobs would be lost, minimum. Of those jobs lost, 60 percent would be female workers, 46 percent would be young workers, and 38 percent would have less than a high school diploma. These are the people that our colleagues claim they care about. However, what they want to do here today is harm those very people. So I think it is important that we let the American people understand what this legislation does. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from Michigan (Mr. Walberg).

Ms. FOXX of North Carolina. Mr. Speaker, as our colleagues have noted, States and localities may enact higher minimum wages than the Federal minimum wage, and there are examples of that. But let's leave freedom in the hands of the people, in the hands of the States. That is what this country is all about. In socialist regimes, all decisions are made by a small group of people at a central government. That is not the American way. Mr. Speaker, I yield 2 minutes to the gentleman from Pennsylvania (Mr. Kelly).

Ms. FOXX of North Carolina. Mr. Speaker, Speaker Pelosi promised that a $15 minimum wage hike would be passed by the House in the first 100 hours of this Congress, so it is not surprising that 7 months later the Rules Committee accepted a manager's amendment to add a modest amount of extra time for small businesses to feel the full effect of this bill. Also, our colleague has said that this will lift 1.3 million people out of poverty, but it is also going to knock 3.7 million people out of jobs. So, let's keep it all in perspective. I yield 1\1/2\ minutes to the gentleman from Georgia (Mr. Allen).

Ms. FOXX of North Carolina. Mr. Speaker, I yield 2 minutes to the gentleman from Alabama (Mr. Byrne).

Ms. FOXX of North Carolina. Mr. Speaker, our colleagues say all the time that we need to help the people at the bottom of the ladder. Those are exactly the people who are being helped by the Republican policies that were enacted in the first 2 years of this administration. We are seeing people at the bottom get the highest percentage increase. So that is already being done, and it is because of regulations being reduced and the Tax Cuts and Jobs Act. Mr. Speaker, I yield 2 minutes to the distinguished gentleman from Pennsylvania (Mr. Smucker).

Ms. FOXX of North Carolina. Mr. Speaker, I yield an additional 20 seconds to the gentleman.

Ms. FOXX of North Carolina. Mr. Speaker, I reserve the balance of my time.

Ms. FOXX of North Carolina. Mr. Speaker, I continue to reserve the balance of my time.

Ms. FOXX of North Carolina. Mr. Speaker, I yield 2 minutes to the gentleman from Pennsylvania (Mr. Perry).

Ms. FOXX of North Carolina. Mr. Speaker, I yield 2 minutes to the gentleman from Texas (Mr. Wright).

Ms. FOXX of North Carolina. Mr. Speaker, I yield an additional 15 seconds to the gentleman from Texas.

Ms. FOXX of North Carolina. Mr. Speaker, I reserve the balance of my time.