Tom Graves

Mr. GRAVES of Georgia

Mr. GRAVES of Georgia. No, just on 1 day. That was June 30, June 30 of this year alone, which was more than the deficit of 2006 altogether. And you look at the stated budget of the State of Georgia, the annual budget is about $17 billion today. So almost 10 times the budget of the State of Georgia for an entire year was borrowed in 1 day here for the Federal Government.

Mr. GRAVES of Georgia. Is there such thing as a happy socialist? I mean, help me with that.

Mr. GRAVES of Georgia. Wealth redistribution.

Mr. GRAVES of Georgia. If I remember right, what, about 700,000 temporary workers for census data gathering, which already a third of them have been laid off.

Mr. GRAVES of Georgia. We did. And I know we are moving to solutions here.

Mr. GRAVES of Georgia. It's easy to look back and sort of, I guess, bash the policies of the last several months, but what's important right now as a Nation is looking for leadership. I mean there has been a lack of leadership coming out of Washington for some time now. The Nation's looking for leadership. They're looking for a vision. They're looking for a plan. And what we have discovered is it's about certainty in the marketplace. When the marketplace has a little bit of certainty about what's going to happen in the future, that creates confidence. There is no confidence in the business marketplace. So your first point up there is excessive taxation. The one thing that is certain right now is that because of inaction right here in Congress because of the Democrat leadership, taxes will go up this January of 2011. Capital gains will rise. Dividend tax will rise. Every income tax bracket will rise. The death tax will rise. The marriage penalty will rise. All of those will rise. So if we want to bring some confidence back to the marketplace, we would make those tax cuts permanent, wouldn't you think?

Mr. GRAVES of Georgia. You know, that's a favorite Georgia Bulldogs statement.

Mr. GRAVES of Georgia. Now, if I remember right, a couple years ago we heard a lot about hope, a lot about change. Taxes were not going to go up on the middle class if I remember right. But if I look at your charts, it's clear that the taxes are going to go up on not just the middle class, but every class. Everyone will pay taxes, regardless of where they are on the economic spectrum whatsoever. And as a result, businesses will not hire as many individuals because their taxes are going to go up. And if businesses aren't hiring individuals, unemployment continues to rise. Unemployment continues to rise, it impacts everyone throughout this Nation. Again we are back in this crazy cycle.

Mr. GRAVES of Georgia. Well, it explains exactly what we need to do. You're right. It's counterintuitive, but it works. Just as if that were to work, then the opposite must be true if you increased taxes. That means your revenue decreases. There is a great illustration in the State of Georgia. They're trying to increase the tobacco tax in order to fill a budget hole. But prior to that, the administration here had raised tobacco taxes. And as a result of the raise of tobacco taxes from the Federal level, income of the State tobacco taxes had decreased by 20 percent.

Mr. GRAVES of Georgia. They were proposing to increase the tax on tobacco. Then they looked, and they looked at what had happened just prior to that. And it was the year before, and it was the administration here that actually raised taxes on tobacco. And as a result of that, the revenue for the State of Georgia actually declined 20 percent. Without the State of Georgia raising taxes, the Federal Government raising taxes, but the State of Georgia's taxes that they would normally collect from tobacco actually declined by 20 percent. This shows that when you increase taxes, you actually--productivity or consumption, all of those things, decrease and therefore it's more damaging to the economy.

Mr. GRAVES of Georgia. Those taxes are only on Big Business, right, that wouldn't impact the consumer? That seems to be the argument that is put out there, but we all know that it's not Big Business that pays taxes. It's not the corporations that pay taxes. It's all passed down through the consumer through the cost of any goods and services as any other cost would be in a service or in a product. But I've been here 30 days. Thirty days I've been sworn in here as a Member of Congress.

Mr. GRAVES of Georgia. It is an honor to represent Georgia's Ninth Congressional District. I tell you, in Georgia what an incredible State. I know your State is great as well. But we have 13 Fortune 500 companies, three Fortune 100, the world's busiest and largest airport, the fourth busiest port in the Nation, an incredible university system and so much when it comes to entrepreneurial sprit.

Mr. GRAVES of Georgia. You're right, and it's great, and that's what we've got to get back to is allowing the freedom to succeed and the freedom to fail, wouldn't you say? I mean, that is a freedom as well. Not government bailouts and government taking care of businesses that make poor decisions or take a risk that just doesn't work out, for whatever reason. But, you know, when we think about where we are going in the future--and I think we've got a great future--we just have to be positive. We have to come up with positive solutions and solutions that aren't the government being the solution but empowering the private sector. We've come into a new era I believe, and I believe it's coming. I would like to say the sun is setting on an era, and that's the era of the champions of government, that the sun is setting on that and now a new dawn is arising and that is going to be the champions of the taxpayer. So as we move forward through these next weeks and this great recess, I think America is waiting for this Congress to take a recess so that they will stop passing policies that are damaging to small businesses and elect a new governing majority here coming up soon and we have positive solutions that just reduce the business owners and, once again, empower them to be the job creators instead of empowering government to be that.

Mr. GRAVES of Georgia. Right. And I believe Bastiat over 150 years referred to that as ``legalized plunder'' in the book, ``The Law,'' where he knew that anyone that was taking without permission and giving to someone else was plunder. And in the case of taxation here in the United States and the raising of taxes that we're going to see in January 2011 just due to the inaction of the leadership here in Washington, that is an increased legalized plunder that is going to occur.

Mr. GRAVES of Georgia. When you think about it, imagine if you had the opportunity to implement the policies that you felt were best to get jobs moving forward here in this Nation. If it was me, I would say, let's empower the private sector. Let's allow them to be the job creators, not government. Let's reduce the tax burden. Let's start with the capital gains tax, the corporate tax rate, as well as many of the other tax rates involved in there. But then not only reduce taxes, cut spending. You have to cut spending in association with those tax cuts. In addition, we need to cut it beyond because of the spending level that we're currently on. But when you think about spending, everyone around here says, well, you can't cut spending. And you have to ask the question: Are we running at an efficient level here as government? We know the answer. The answer to that is no. In my opinion there are no sacred cows. It is time to cut government and cut it and cut deep when it comes to cutting government. Americans all across this Nation are cutting their budget, and there are a lot of important things in their budget. I believe it's time for the Federal Government to cut their budget tremendously, reduce taxes, reduce the regulation, and let the private sector once again flourish.

Mr. GRAVES of Georgia. If you had to simplify that for the American viewers out there, and I see that says about 91 percent of our debt as a percentage of GDP. How would you simplify that in terms of the average household at home and they have income coming in, their pay as it relates to debt?

Mr. GRAVES of Georgia. You're saying that 91 percent of that goes to debt; that income has to go to debt.

Mr. GRAVES of Georgia. If the liability was called in at that point. It is a liability of 91 percent.

Mr. GRAVES of Georgia. That's right. I've only been here 30 days and I can tell you, this government is way too big. It does not run efficiently. There are many tasks that it should not be involved in whatsoever. We've seen those pass this House just in my few short weeks of being here. As I think about where we're going and I think about the solutions that we're all seeking, the Economic Advisory Council that I've put together across the 15 counties of the Ninth Congressional District is going to be one of the most dynamic councils I believe we have ever seen, because these are the business leaders, those that are on the ground hiring and making decisions for their business, that are making tough decisions; what to cut out of their budgets, what hours are they going to operate, what supplies are they going to buy. And we're asking them that question, What is keeping you from hiring that next employee? Because it goes back to that, if one out of three businesses would just hire one person in the next 12 months, unemployment would be cut in half. That's how close we are. So what is it that the government is doing to prevent you from hiring that next employee? I am excited that soon I will be bringing back what I believe are going to be some powerful recommendations to the House of Representatives right here and say, From the Ninth Congressional District, from the business leaders in north Georgia, here's what they say needs to be done in order to get this economy back on track.

Mr. GRAVES of Georgia. There are great talents and opportunities in Georgia. And as I know we are wrapping up our time probably here, and as I sort of close out, it goes back to that zero sum. It is a zero sum game when it comes to employment. You are either expanding the private sector, or you are expanding the governmental sector. And I believe our objective, and I am glad that you are of like mind with me, that as we consider the deliberations over the next several weeks, that those who are watching tonight know that there are two men, plus more here, who really want to see the private sector expand, and expand through innovation and the excitement of the idea. So I sort of liken it to the flame. There is that entrepreneurial flame out there. It has been dampened. It has been dampened quite a bit over the last 15-16 months with the policies coming out of Washington, and I believe it is our objective and I believe we can do this. It is time to once again fan that flame and get that dampened spark flamed back up and get that entrepreneur fired back up about that American dream that you just spoke of. I will close with this story, because my son who is 10 shared with me the greatest illustration last year. We were debating allowances. We were talking a dollar for this task and a dollar for that task. And he stopped me and he said, dad, if you give me a dollar to do something that I should already be doing, doesn't that just take away from what mom can buy groceries with? Wouldn't it be better if I made something and sold it and added to the family? I mean, what a phenomenal example from a 10-year-old boy who understands productivity and wealth accumulation. That is something that excites me, that that young generation gets it.

Mr. GRAVES of Georgia

Mr. GRAVES of Georgia. Mr. Speaker, Americans are overtaxed. The Tax Foundation estimates that it took American workers over 3 months this year to pay their share of local, State, and Federal taxes, and this Congress has raised taxes over $500 billion on the American people so far. You know, enough is enough. We need to reduce spending and then focus on reforming the tax code with a fairer, simpler system. That's why I have cosponsored H.R. 25, the FairTax. The FairTax eliminates income taxes, estate taxes, capital gains taxes, Social Security, Medicare, and self-employment taxes and replaces them with one simple retail sales tax. Workers will keep 100 percent of their paychecks, and a new set of winners and losers will be there. The winners being the taxpayers, and the losers being the government. The FairTax is common sense and abolishes the IRS, making April 15 just another day on the calendar, and maybe one day, we can pass a suspension to recognize that great accomplishment. Lower taxes, less government, and personal responsibility--that's a recipe to getting this economy back on track.

Mr. GRAVES of Georgia

Mr. GRAVES of Georgia. Madam Speaker, in Georgia's Ninth Congressional District, there is the small town of Ellijay. It is known not only for Colonel Poole's barbecue and as the apple capital of Georgia but also as the home of the McCutchen-Poole Small Business Coalition. The reason is that community leaders like Colonel Oscar Poole and Joe McCutchen are committed to creating an environment where small business can thrive. However, taxation and regulation are stifling small business expansion. Throughout my legislative career, I have focused my efforts on removing these unnecessary barriers in order to unleash America's entrepreneurial spirit. As a small business man, I know that cutting spending here in Washington, eliminating the capital gains tax and reducing the corporate income tax, along with empowering the private sector, is the way to create jobs and to get Americans back to work. Stimulating the economy must come from expanding the private sector, not by expanding government. We have a 16-month track record of failed economic policies, and they continued once more here today. We should be encouraging small businesses, not penalizing them with higher taxes and more regulation. So I hope you will join me. Let's empower the taxpayer. Let's provide tax relief, not tax creep.

Mr. GRAVES of Georgia

Mr. GRAVES of Georgia. Mr. Speaker, this administration has borrowed more money than all other administrations in the Nation's history combined, and they've only been at this for just over a year. The change we were promised has not turned out to be what all had hoped for. The unemployment rate is nearly 2 percent higher than what the Democrats promised with their first stimulus package. America's debt is at $13 trillion now. Now we learn that the administration wants another $50 billion bailout. When will it end? Washington cannot create jobs no matter how much money is thrown out there. We know that jobs can only be created when you expand the private sector and not expand the government. So, as we look forward to getting Americans back to work, I stand here today to say it is time for Washington to get about the business of expanding the private sector and of promoting sustainable job creation, which will come from that, and not of expanding government. I know Georgians are tired of what is going on here in Washington, and I know most Americans are, too. Let's end the bailouts, the buyouts, and the stimulus bills.

Mr. GRAVES of Georgia

Mr. GRAVES of Georgia. Madam Speaker and Congressman Lewis, Congressman Kingston, thank you. As we recognize Flag Day today, it's also a reminder of the greatness of this young Republic, the foundations for which it rests, and the opportunity that awaits. As one who didn't grow up in wealth or politics but, really, quite the opposite--very simple beginnings in a single-wide trailer on a tar and gravel road in the backwoods of north Georgia--I am here now able to pay tribute to my parents who couldn't give me the material things in life but, instead, they showed me love and they encouraged me to dream big, to work hard, and achieve much. And while I am standing before you today as a freshman Member, I am the freshest voice from the campaign trail. And the message from the hills of north Georgia to the Hill of this great building is very clear, and that is that it's time to curb spending. It's time to balance the budget, and it's time to empower the people. While the challenges are great in this Nation, the will and the Constitution of her people are greater. And, you know, my dad was right. If we, as Americans, dream big, work hard, we can achieve much as a Nation. So on behalf of Georgia Nine, Madam Speaker, I am here to go to work.

Mr. GRAVES

Mr. GRAVES. Madam Speaker, I rise today in support of the chairwoman's request to suspend the rules and pass H.R. 4508. The bill is straightforward, and it's a clean extension that prolongs the authorization of all programs authorized by the Small Business Act, Small Business Investment Act, and any program operated by the Small Business Administration for which Congress has already appropriated the funds. This extension is going to last until April 30, 2010. This legislation is essential because authorization for various programs operated by the SBA expire on January 31 of this year. Over the past 3 years, our committee has worked in a bipartisan fashion, reported out a number of bills to reauthorize and extend programs operated by the SBA. Despite our efforts to come to terms with the Senate over the broader reauthorization, the extension passed late last year will expire before the legislative process can run its course. Without enactment of this extension, a vital number of programs that the SBA operates would cease to function. Given the continued importance that small businesses play in the revitalization of the American economy, we simply cannot allow the SBA authorizations to run out. The work needed to help America's entrepreneurs revitalize the economy simply cannot be accomplished within the time frame outlined in the current legislation. We not only need to reauthorize these critical programs, but also update them to respond to new economic conditions. The extra time contained in this legislation allows us to fully explore and implement the ideas that will give our Nation's entrepreneurs the tools they need to be successful. Passage of this legislation will enable the House and the Senate to continually work in a conscientious manner to address the necessary changes to SBA programs. I urge all my colleagues to suspend the rules and pass H.R. 4508. Madam Speaker, I reserve the balance of my time.