Jeb Hensarling

Mr. HENSARLING

Mr. HENSARLING. Mr. Speaker, today, I would like to congratulate the citizens of Malakoff, Texas, on their Sesquicentennial celebration on April 30, 2005. For the last 150 years, Malakoff has been home to fine families and a wonderful community rich in the traditions of East Texas. According to the Handbook of Texas, the area we now know as Malakoff was first settled by Jane Irvine, a widow from Alabama, who immigrated with her family to the area before 1835. Once settled in Texas, they built a gristmill on Caney Creek, and a small community grew up around the mill. In 1852 the name was changed to Mitcham Chapel after a Methodist church of the same name organized by the Rev. Hezekiah Mitcham. Around 1855 the city fathers applied for a post office under the suggested names of Mitcham or Purdon. Both names had already been used. The Postmaster, who had been reading about the Crimean War, suggested the name Malakoff, after a Russian town that had gained prominence during the war. Since that time, Malakoff has grown, but it is has always maintained its small town East Texas roots. Lying at the gateway of East Texas, Malakoff boasts award-winning schools and plays host to the annual Malakoff Cornbread Festival. During their Sesquicentennial celebration this year, the citizens of Malakoff can be proud of their past and optimistic about their future. As Congressman for the Fifth District of Texas, it is a privilege to represent them in the United States House of Representatives. On this important occasion, I would like to extend my best wishes to the citizens of Malakoff and offer my heartfelt prayers for continued prosperity and success over the next 150 years.

Mr. HENSARLING

Mr. HENSARLING. Mr. Speaker, I rise today to recognize the exceptional leadership, character, and outstanding achievements of my dear friend, Mayor Jerry King of Athens, Texas. After an unprecedented five terms in office and 10 years of exceptional service, Mayor King has decided to step down as mayor. His decision is truly a loss to the citizens of Athens, Texas. A responsive and fiscally responsible leader, Jerry King has always brought Athens together to achieve many worthy goals, including the opening of a new city hall that is modern and meeting the needs of the citizens of that community and the Texas Freshwater Fishery Center, which is truly a wonderful showplace facility for Athens and east Texas that helps educate numerous tourists and school children on the wonders of nature and the environment and our freshwater fish. He has helped revitalize downtown Athens, Texas. Mr. Speaker, at a time when many small towns in rural America and rural Texas have seen a decline, they have seen their glory days pass them up, downtown Athens is vibrant, it is alive, it is well, thanks to the leadership of Jerry King. It shows that Athens' glory days are in the present and in the future, not in the past. Mayor King has also worked to improve Athens' transportation infrastructure through the new loop that is just vital to economic development in that part of east Texas. Mayor King has led and won the support on so many different programs and projects that are important to the people of Athens. This is truly a record of accomplishment. Undoubtedly because of it, Mayor King is recognized as a strong and visionary leader throughout all of east Texas; and elected officials throughout East Texas, including myself, have sought his advice, his counsel, his wisdom. Mr. Speaker, he is upbeat, he is optimistic, he is forward thinking and he is a good listener; and through his efforts he has made Athens, Texas, a better place to live, to learn, to work, and to raise a family. Mr. Speaker, Jerry King has not only demonstrated his dedication to public service through his tenure as mayor but through his volunteer service and enthusiastic involvement in community organizations as well. Jerry has always led by example. He served as the president of the Henderson County YMCA, the president of the Athens Noon Kiwanis Club, the president of the Athens Teenage Baseball Association, the vice president of the Chamber of Commerce, a board member of the Athens Industrial Foundation, and the list goes on and on and on. In his professional career, Jerry King has undertaken a noble life, that of educator. His life is one about improving education and strengthening our institutions of higher learning. After graduating from Commerce High School, Jerry King attended Texas A&M University at Commerce, where he received a bachelor's degree in economics, a master's degree in business administration, and a doctorate in education. He has put his education to work for the citizens of east Texas as a professor of management, business and economics at his beloved Trinity Valley Community College. Today he serves there as Dean of Occupational Instruction; and thanks to his work, young people from all over east Texas have been enlightened about business and economics, and thusly they have been empowered. They have been empowered by a great teacher that they respect and admire to go out and create the next generation of inventory software, to help found the next community bank next door. As the Congressman for the Fifth Congressional District of Texas, I am pleased today to recognize my good friend Jerry King for his many years of public service as mayor and for the outstanding contributions he has made to the city of Athens. I also want to thank his wonderful and patient wife, Dosha, for the sacrifice she too has made on behalf of the people of Athens. Although he is stepping down as mayor, Jerry King has truly made his community and country a better place. I know he will continue to do so, be it as public servant, leader, volunteer, or educator. Mr. Speaker, the greatest compliment I can pay my friend Jerry King tonight is that when I think about my 19-month-old son, Travis, I can be proud if one day he would grow up to be just like Mayor Jerry King of Athens, Texas.

Mr. HENSARLING

Mr. HENSARLING. Mr. Speaker, if for whatever reason we choose not to reduce benefits when we can use the least creative approach that has ever come out of Washington, D.C., and that is increase taxes, if we decide to try to solve this sea of red ink by raising taxes again, younger workers today will see their payroll taxes increase by 43 percent. I mean 43 percent, what a staggering tax increase on young families. I mean, what is that going to do for people who are trying to buy a home or start a family, and what is that going to do to job creation in America? It would be a crushing tax burden. But at the end of the day, there are only three options if we are going to save Social Security as we know it for future generations. We are either looking at a massive tax increase, we are looking at a massive benefit cut, or we are looking at something else that the President is leading on, and that is having something called a personal retirement account, something that is going to have real assets in it that people own, that families can create a nest egg with, their own nest egg that will grow over time, and using something that Albert Einstein once called the greatest discovery he ever made in his life, and that was compound interest. And I believe that that is the option that we should begin to look at as a Nation, personal saving accounts. And again I want to reiterate a couple of principles. No one is talking about changing Social Security. For those who are on Social Security tonight, those who are about to be on Social Security, we have a moral commitment to make sure that the system they worked on is there. But I hope, Mr. Speaker, that as time goes by and more Americans will listen to this debate, I do not know of any grandparent in America who wants to deny their grandchildren equal retirement security and equal retirement opportunity that they have enjoyed. So I think it is critical that we turn to personal accounts so that younger workers on a voluntary basis, a total voluntary basis, will be able to put some money aside in an account that can grow over time. And I think what we are doing, Mr. Speaker, is we are adding the best elements of Social Security to the best elements of a company pension plan. We are going to keep the government backing. Nobody is ever going to lose all their retirement security. The government backing, the social safety net, will always be there. We are going to have guaranteed lifetime benefits. We are going to have progressive benefits for lower-income workers. But to that we are going to add worker ownership so that workers can actually own a part of their Social Security. They will be invested in the length and breadth of the American economy, not in their brother-in-law's real estate deal or in 100 shares of Enron, but we are talking about pension-grade investments that over time have proven to be safe and yield a retirement security better than Social Security promises and cannot deliver. Some tonight would say, That sounds great but it sounds a little risky to me. The real risk is leaving one's retirement security in Washington because already Washington has raided the Social Security trust fund over 59 times, and they have spent that money for $75 million indoor rain forests, and they have spent it on $800,000 outhouses that do not even work and studies about how college students decorate their dorms. They spend it on a lot of things besides retirement security. There have been over 20 tax increases. And we started out taking 1 out of $50 for Social Security, now 1 out of 8. There have been multiple benefit cuts, declining rates of return, and no ownership rights. Mr. Speaker, the real risk in Social Security is leaving America's seniors' retirement security in the hands of Washington. Because of that, I want to applaud my colleague from North Carolina, who has made a great impact as a freshman Member, I want to applaud him for his leadership and speaking out not only for the current generation of retirees but future generations of retirees, represented by my children.

Mr. HENSARLING. Mr. Speaker, I thank the gentleman for yielding to me, and I certainly appreciate his leadership on this vital issue to the future of many Americans, not only seniors but younger Americans. So I think it is especially apt that the youngest Member of the House of Representatives would help bring this issue to the national consciousness tonight. I am also especially honored that I could follow the esteemed majority leader to the floor. But for his leadership we would not be having this discussion now. And due to his leadership and his courage and his commitment to principle, this House is trying to make a stand, not just for the next election but for the next generation, because I think as more Americans become familiar with the challenges in Social Security, they will soon realize that if this House does not act and act now that Social Security as we know it will not be there for future generations. And, Mr. Speaker, we cannot look ourselves in the mirror and let that happen. And I not only speak for myself tonight, but I probably speak for many other Members of this body in saying that Social Security is more than just a run-of-the-mill congressional debate. It is something that is very personal to me because, Mr. Speaker, I have two parents who are in their 70s. Social Security is part of their retirement. My father worked all of his life paying into the system, and I feel a moral obligation not just as a Member of Congress but as a son to make sure that my parents receive every single penny of Social Security benefits that they paid for. So as we have this discussion about what can we do for future generations, every Member of this Congress I believe is committed to the proposition that for anybody who is receiving Social Security today, or will soon be receiving Social Security, nothing in the system is going to change. That is a matter of fairness. That is a matter of commitment that this Nation has made to its seniors. But not only do I feel a moral commitment to my parents; I have a moral commitment to two other people. And that happens to be my daughter, Claire, who is 3 years old; and my son, Travis, who is 18 months old. And again my wife, Melissa, and I realize that if this body does not do something that the retirement security that my parents enjoy will not be there for our children; and that is simply not fair, Mr. Speaker. Let me say that Social Security has indeed been a very important program in the history of America, and it has helped alleviate poverty for a number of seniors. It has given a lot of seniors peace of mind, but it is not a system that is based upon savings and investment. It is a system that takes funds from current workers to transfer to current retirees. That is a system that works well if we have a whole lot of workers and only a few retirees. And when Social Security was first created back in the 1930s, we had over 40 workers paying into a system to benefit every one retiree. As recently as 1950, that figure was down to only 16 workers paying into a system to benefit every one retiree. Today we are down to only 3.3 workers paying into a system for every one retiree. And today's younger workers are quickly on a road to see only two, two workers paying into a system for every one retiree. That presents incredible financial challenges to our Social Security system. And there is another challenge we have. There is another demographic trend that is great for seniors, but not so great for the Social Security system, and that is when Social Security was first created, the life span of an average American worker was 60 years of age. Due to the marvels of modern medicine and better technology, today the average life span of a worker has increased to 77. So again we have fewer and fewer workers supporting more and more retirees, and these retirees are living longer and longer. The system cannot keep pace. So what has Congress done in the past? In many respects it has started to take the security out of Social Security. As time has gone by, taxes have increased. Many benefits have been cut. So as time goes by, we start to lose the security in Social Security. Social Security was a great deal for my grandparents, who were born in roughly 1900. When we look at what they put into the system versus what they took out, they received a 12 percent rate of return on their Social Security. That is great retirement security, Mr. Speaker. That is great retirement security. My parents who were born, my dad in the late 1920s, my mother in the early 1930s, they are receiving roughly a 4 percent rate of return on their Social Security. Not good, but not bad. My generation, represented by those born around 1960, we are going to receive only about a 2.5 percent rate of return. That is barely keeping pace with inflation, Mr. Speaker. And my children, represented by those who were born approximately in the year 2000, they could receive a negative rate of return. In other words, they may be putting more money into the system than they take out. That, Mr. Speaker, is when we lose the security that is in Social Security. So all of these financial pressures, where is this leading us? Unfortunately, it is soon going to lead us to a sea of red ink. There is some good news. The good news is as of today, Social Security is still running a surplus. But for those who can see the top of this chart here, just 3 years away, the surpluses in Social Security begin to decline. And in just 12 years, in the year 2017, we go from having surpluses to having deficits. In other words, in the year 2017, Social Security begins to go bankrupt. And as the years go by, the sea of red ink only gets larger and larger and larger and larger. And, Mr. Speaker, that is indeed a large sea of red ink. How large? The trustees of the Social Security trust fund tell us that is a $10.4 trillion sea of red ink that will simply drown the system, drown our children and grandchildren, if we do not act today. Mr. Speaker, we often hear large numbers tossed around in the Nation's capital and $10.4 trillion is a very large number. But let me try to relate that to a number that we can all understand. In other words, what the Social Security trustees are telling us is that if we wanted to balance the system and ensure that our children and grandchildren have the same retirement security that current retirees have, every man, woman, and child in America would have to write a check today to the Federal Government for over $34,000. That is almost a $150,000 check from a family of four to try to balance this system. Mr. Speaker, my guess is not many Americans would want to write out that $34,000 check tonight. So we are going to look at some other options. What are the options if we do not write out that check tonight to balance the system since we know we have fewer workers, more retirees, and they are living longer? If we do nothing, younger workers today who have just recently entered the workforce, those in their 20s, by the time they retire, they will have their Social Security benefits cut by a full third. How many seniors today could afford to have their Social Security benefits cut by a full third? So many seniors rely upon that Social Security. It is unconscionable. Is that the future we are going to leave our children and grandchildren?

Mr. HENSARLING. Mr. Speaker, indeed, I appreciate the gentleman for bringing up that point because not only do we have a huge dollar amount to solve the problem today, every year that we turn our backs on this as a Congress, as a Nation, that mountain gets $600 billion higher each year of inaction. So, indeed, the cost of inaction is great.

Mr. HENSARLING

Mr. HENSARLING. Mr. Speaker, I rise today as a cosponsor of H.R. 8 and in support of this rule. I believe, as most Americans do, that it is unacceptable for a grieving family who has recently lost a loved one to get a visit from the undertaker and the IRS on the very same day. It is unconscionable, and it ought to be illegal. The death tax is really a tax on the American dream. Americans work hard all their lives building up farms and ranches and small businesses, hoping that maybe one day they can pass this along to their families. But after years of payroll taxes and income taxes and sales taxes and property taxes, many businesses and farms just do not make it. And those that do, the government can step in and take over half of what they worked their entire life to build. Now, Mr. Speaker, I grew up working on a farm, and I represent a large portion of rural East Texas. East Texas is a great place to live, but sometimes it can be a challenging place to make a good living. Recently, I spoke to a rancher in my district who has worked hard nearly 30 years building up a cattle ranch operation. His greatest dream is one day to leave that ranch to his family. But with sadness in his voice he told me, you know what, Congressman? By the time the government takes its share, there is just not enough to go around. It is not fair to take that family's ranch. It is not fair that Americans are being taxed twice on the same income. And it is not fair that the Federal Government can step in and automatically inherit 55 percent of the family farm, a family business or a family nest egg. Mr. Speaker, let us vote for this rule. Let us support H.R. 8. Let us kill the death tax and breathe new life into the American dream.

Mr. HENSARLING

Mr. HENSARLING. Mr. Speaker, Social Security has been a vital program for America's retirees for many years. Unfortunately, it is a system that was designed in 1935, not 2005. I have a personal stake in Social Security. My parents are in their 70s. They depend upon Social Security as part of their retirement. But I am also the father of two small children, and I owe them no less retirement security tomorrow than my parents enjoy today. Unfortunately, fewer workers, more retirees, and longer life spans will bankrupt Social Security. We must work together to save the system, which can be done without changing benefits or raising taxes on current and near retirees. Instead, we can give younger workers the opportunity to voluntarily invest some of their payroll taxes in personal retirement accounts that they can own, which will grow over time and which Washington cannot take away. By allowing them to do this and build their own nest eggs, and by protecting the Social Security surpluses from being raided in Washington, we can keep the promise of Social Security for the next generation of Americans.

Mr. HENSARLING

Mr. HENSARLING. Mr. Speaker, today I would like to honor the Van Vandals boys' basketball team who won the Texas 3A championship on March 11, 2005. In their first trip to the state finals in sixty-three years, the Vandals beat Graham High School to return home with the state championship trophy. This is an accomplishment that the young men on the team will remember for the rest of their lives. As the congressional representative of the members, coaches, and supporters of the Van Vandals, it is my pleasure to recognize their outstanding accomplishment today on the floor of the United States House of Representatives.

Mr. HENSARLING

Mr. HENSARLING. Mr. Speaker, today I would like to honor several members of our Nation's military who have recently returned home after serving our country with distinction in Iraq. Specialist Rocky Padgett, Specialist Chad Sumner, Specialist James Tyson Zigler, Specialist Bud Rath, Specialist Bradrick Graves, Specialist James Arnold, Specialist Jason Yanna, Specialist Michael Easdon, Corporal Jason W. Fitzgerald, Sergeant Christopher Callaway, and Sergeant John L. Tetty all deserve our deepest appreciation and respect. In the face of tremendous danger, these 11 men bravely answered the call of duty to fight our enemies abroad so that we would not have to fight them here at home. Because of their efforts, America is safer today than it was just 2 years ago. On behalf of the grateful citizens of the Fifth District of Texas, it is my pleasure to welcome these heroes home. America owes these men, and all who serve beside them in the War on Terror, a tremendous debt, one that we will probably never be able to fully repay. Today, we thank them for their courage, their patriotism, their service, and their sacrifice. As these men return to their families, friends, and the lives they left behind, I want to ensure that they do so secure in the knowledge that it is through their service that America will one day be free from the horrors of terrorism. It is because of their service, that future generations of Americans will be able to enjoy freedom, peace, prosperity, and the many other blessings that God has bestowed upon this great land, the United States of America. Gentlemen, on behalf of a grateful Nation, welcome home.

Mr. HENSARLING

Mr. HENSARLING. Mr. Speaker, today I would like honor the life of Mrs. Anne Dora Moore Hall, 4 passed away on March 16, 2005. Mrs. Hall was born in Cherokee County, Texas to Miles Cleveland and Madge Edwards Moore. She lived most of her life in Dallas and had a long, successful career as an insurance executive. A mother to two children, Robert and Steven, and wife to Bergen Hall, Mrs. Hall was also very active in her community. She was an officer in the Pierce Brooks Gospel Foundation, served on the Texas Safety Council, and worked with the Crippled Children's Foundation of America. She was also engaged in politics as a longtime member of the White Rock Women's Republican Club, the Public Affairs Luncheon Club, and working at her local precinct during elections. As a mother, a wife, a businesswoman, and a community leader, Mrs. Anne Dora Moore Hall's life has embodied the values of family, community, and hard work that lie at the core of American society. As her representative in Congress, it is my distinct pleasure to honor her today on the floor of the United States House of Representatives.

Mr. HENSARLING

Mr. HENSARLING. Mr. Speaker, as the elected representatives of the American people, we have no greater responsibility than defending the lives and liberties of the most vulnerable among us. Today, both the legislative and executive branches of the United States government are acting in concert to defend the life of one such human being, Terri Schiavo. While the legal issues related to this case remain uncertain, the moral issues could not be more clear. Terri Schiavo is very much alive today. By all appearances, she is responsive to her family and still has the capacity to feel joy and pain, like the rest of us. Terri Schiavo has a right to live, and we have a responsibility to help her. With such complex ethical questions that fall between interpreting the law and saving an innocent human life, we must always err on the side of life. President Abraham Lincoln said, ``I have been driven many times upon my knees by the overwhelming conviction that I had nowhere else to go.'' This week, millions of Americans, many of my colleagues, and I found ourselves in a similar position. Through this action, Congress is not only saving the life of Terri Shiavo, we are making a statement about the country we live in and the culture of life which we seek.

Mr. HENSARLING

Mr. HENSARLING. Mr. Speaker, today I would like to commemorate two significant anniversaries of Rotary International. On February 23, 2005, Rotary International celebrated its 100th anniversary. From its humble roots in Chicago, Illinois, Rotary International has grown into a worldwide organization of business and professional leaders whose mission is to provide humanitarian service, encourage high ethical standards in all vocations, and help build goodwill and peace in the world. Since 1943, Rotary International has distributed more than $1.1 billion to combat polio, promote cultural exchanges, and encourage community service. I also want to provide special recognition to an important member of this outstanding organization, the Rotary Club of Athens, Texas, on the occasion of their 75th anniversary on December 1, 2004. Throughout its seventy-five year history, the Athens Rotary Club has achieved great successes in carrying out the mission of Rotary International. In past years, the Athens Rotary Club has raised money to combat Polio, provided scholarships to two seniors from each high school in Henderson County, and sponsored exchange students from around the world. In addition, the club is active with the Boy Scouts of America, the Henderson County 4H club, the YMCA, the local Food Pantry, and numerous other charitable and civic organizations in and around Athens, Texas. Through these actions, the Rotary Club of Athens, Texas, has exemplified the values of service and charity that lie at the heart of American society. As the congressional representative of the members of this outstanding organization, it is my distinct pleasure to be able to honor them today on the floor of the United States House of Representatives.

Mr. HENSARLING

Mr. HENSARLING. Mr. Speaker, today I would like to honor Mr. Larry Teague, Mayor of Mabank, Texas for his longtime support of agriculture in and around Mabank, Texas. Mr. Teague is a recipient of the Woodrow Walker Award from the Henderson County Livestock Show Association, for which he has served as a buyer for 25 years, In addition, Mr. Teague has also been a buyer for the Kaufman County Junior Livestock Show and a member and officer of the Mabank Ag Booster Club. A father to three children, Randy, Rachelle, and Robby, Mr. Teague married his wife, Linda Carter, in June of 1972. Along with his agricultural activities, Mr. Teague is a member, deacon, and trustee at the First Baptist Church in Mabank. He is the president of Mabank Economic Development, and a supporter of a number of charitable programs including Kids Across America, the Special Olympics, and the Make a Wish Foundation. As a father, a husband, a devout churchgoer, and a community leader, Mr. Larry Teague has embodied the values of family, faith, and hard work that lie at the core of American society. As his representative in Congress, it is my distinct pleasure to honor him today on the floor of the United States House of Representatives.

Mr. HENSARLING

Mr. HENSARLING. Mr. Speaker, today I would like to commemorate two significant anniversaries of Rotary International. On February 23, 2005, Rotary International celebrated its 100th anniversary. From its humble roots in Chicago, Illinois, Rotary International has grown into a worldwide organization of business and professional leaders whose mission is to provide humanitarian service, encourage high ethical standards in all vocations, and help build goodwill and peace in the world. Since 1943, Rotary International has distributed more than $1.1 billion to combat polio, promote cultural exchanges, and encourage community service. I also want to provide special recognition to an important member of this outstanding organization, the Rotary Club of Mineola, Texas, for their sixty-five years of service to Wood County. Throughout its sixty- five year history, the Mineola Rotary Club has achieved great successes in carrying out the mission of Rotary International. In past years, the Mineola Rotary Club has raised money to provide scholarships to local students, sponsored a reading program at the local library for students trying to learn English, and planted trees throughout the county. In addition, the club is an active fundraiser for the local library, has sponsored programs to teach students Spanish, and has been active with the Meals on Wheels program that brings food to the elderly population in the area. Through these actions, the Rotary Club of Mineola, Texas, has exemplified the values of service and charity that lie at the heart of American society. As the congressional representative of the members of this outstanding organization, it is my distinct pleasure to be able to honor them today on the floor of the United States House of Representatives.

Mr. HENSARLING

Mr. HENSARLING. Mr. Speaker, today I would like to honor Mr. Randy Teague of Mabank, Texas for his longtime support of agriculture in and around Henderson County of Texas. From 2000 to 2004, Mr. Teague served on the Henderson County Beef Committee, serving as its chairman in 2004. He has been an organizer of the Henderson County Livestock Show since 2000, and is a member of the Henderson County Show Board. A father to three children, John Carter, Clara Jane, and Cash, Mr. Teague married his wife, Amy Morris, in January of 1999. Along with his agricultural activities, Mr. Teague is the Chairman of the Nominating Committee at the First Baptist Church in Mabank. He is also a supporter of the Kaufman County Women's and Children shelter, the Gold Card Luncheon Program for Mabank High School, the Special Olympics, and the Make a Wish Foundation. As a father, a husband, a devout churchgoer, and a community leader, Mr. Randy Teague has embodied the values of family, faith, and hard work that lie at the core of American society. As his representative in Congress, it is my distinct pleasure to honor him today on the floor of the United States House of Representatives.

Mr. HENSARLING

Mr. HENSARLING. I thank the gentleman for yielding me this time. Mr. Chairman, we have now come down to two budgets: one offered by the gentleman from Iowa (Chairman Nussle) and the majority and the most fiscally responsible budget we have seen in quite some time here; and another budget that wants to tax more and spend more, and that is their answer to the Nation's fiscal woes. Clearly, we agree that this Nation has a deficit and a deficit that is too large. But those on the other side of the aisle seem to act like spending has nothing to do with the equation in the deficit. We have been spending money here at over twice the rate of inflation, 50 percent faster. The Federal budget has been growing 50 percent faster than the family budget. We are on an unsustainable growth path on the growth of Federal Government. We must do something to control the growth of Federal Government. Now, previous speakers, I believe, have used the term ``auto pilot,'' that this budget puts the Nation on auto pilot. Well, let me tell you about the auto pilot that their budget puts this Nation on. That is an auto pilot that, if we do not do anything about spending, according to the General Accounting Office we are heading to a future where we will have to double Federal taxes or cut Federal spending by 50 percent. Well, they do not want to cut any Federal spending. So what that means is we are on auto pilot to double Federal taxes on the American family. Now, frankly, on our side, we have done our part. Tax revenues are up. We listened to the other side, and they talk about all the massive tax cuts. Well, I am sitting here, Mr. Chairman, and I have the latest reports out of the Congressional Budget Office. And guess what? We have cut marginal tax rates on the American family on small businesses. And guess what? Tax revenues have increased. Tax revenues are up. People go out and they save more and they invest more and they start small businesses. I was in Jacksonville, Texas, a small town in my district, not too long ago and visited with a small business there that does aluminum die casting. Prior to the Bush tax relief package, they were getting ready because of competitive pressures to have to lay off two people. But because of tax relief, they were able to modernize their plant and equipment, and instead of laying off two people, they hired three new people. Now, that is five people that could have been on welfare, five people that could have been on unemployment. But instead, five people who represent part of that over two million new jobs that have been created in America, five people that are paying in taxes, as opposed to taking out. And that is why we see that tax revenues have increased. And so, frankly, tax relief has been part of the deficit solution. And even if it were not, we are talking about a $2.6 trillion budget. And if you look at the line item, tax relief is $17 billion. Now, if you do the math, that means that tax relief is less than 1 percent of this Federal budget. So even if it was not bringing in new revenues to the government, how could tax relief amount to all of this problem? The challenge has been on the spending side. Just look over the last 15 years: international affairs up 93 percent, agriculture up 165 percent, transportation 78 percent, education 95 percent. And the list goes on and on and on. Now, often we get good things for our tax expenditures. We can have student loans; we can have Kevlar vests for our soldiers. But, unfortunately, quite often we do not get good things for our tax expenditures. Sometimes we get wheelchairs from Medicare that cost five times as much as those of the VA. Sometimes we get multimillion dollar studies of how college students decorate their dorms. We are talking about reducing the growth rate of government. And I cannot believe, and no American family would ever believe, that you cannot find seven-tenths of 1 percent, less than 1 percent, of waste or fraud or abuse or duplication. American families would laugh at that. And if we do not do this, Mr. Chairman, we are looking at this future, this auto pilot future that I believe is fiscally immoral, that will double taxes on our children and grandchildren. We need a budget, not for the next election; we need a budget for the next generation. And that is why I so strongly support the committee budget, the gentleman from Iowa (Chairman Nussle's) budget, because it is that fiscally responsible budget for the next generation.

Mr. HENSARLING

Mr. HENSARLING. Mr. Chairman, I yield 3 minutes to the gentleman from Indiana (Mr. Pence), one of the outstanding conservative leaders of this Congress, the chairman of the 100-member Republican Study Committee. (Mr. PENCE asked and was given permission to revise and extend his remarks.)

Mr. HENSARLING. Mr. Chairman, I demand a recorded vote.

Mr. HENSARLING. Mr. Chairman, I yield 2 minutes to the gentleman from Arizona (Mr. Flake), one of the most fiscally responsible Members of Congress.

Mr. HENSARLING. Mr. Chairman, I yield myself the balance of my time. For some people, Mr. Chairman, we just cannot get enough government. But we are drowning in a sea of red ink already. This is not a debate about how much we are going to spend on health care and education and housing. This is a debate about who is going to do the spending. We believe families should do the spending. We believe good things come from freedom, from opportunity, and freedom for families to choose the health care that is right for them, to choose the education opportunities for their children that are right for them, to find the best job in a competitive market economy. We cannot have unlimited government and unlimited opportunity. The Republican Study Committee believes in unlimited opportunity. Mr. Chairman, we urge the adoption of this amendment; but should it fail, please, we ask the House to vote for the Nussle budget.

Mr. HENSARLING. Mr. Chairman, growing government and putting us on a path to doubling taxes on the American people meets nobody's definition of fiscal responsibility. Mr. Chairman, I yield 2 minutes to the gentleman from Indiana (Mr. Chocola), a real leader on budget enforcement in this Congress.

Mr. HENSARLING. Mr. Chairman, I yield 2 minutes to the gentleman from North Carolina (Mr. McHenry), an outstanding freshman Member.

Mr. HENSARLING. Mr. Chairman, I offer an amendment in the nature of a substitute.

Mr. HENSARLING. Mr. Chairman, I yield myself as much time as I may consume. Mr. Chairman, spending is out of control in the Nation's capital, and if we do not work to control this spending, we will leave our children and grandchildren a legacy of debt, a legacy of a lower standard of living, a legacy of more government, of less freedom, of less opportunity. Many people in this Chamber have risen tonight to say that we are not spending enough money. I think we should take a look at the facts. Number one, Mr. Chairman, we are now spending over $20,000 for American families. For the first time since World War II are we spending this much money. For only the fourth time in the history of our Nation, and if we look back just 10 years, almost every government agency has grown by a huge multiple overinflation. International affairs is up 93 percent; agriculture up 165 percent; transportation, 78 percent; education, 95 percent, and the list goes on and on and on. We have been growing government at twice the rate of inflation and 50 percent faster than the family budget. We believe that these growth rates are unsustainable and let us just not look at the past. Let us look at the future. According to the Congressional Budget Office, over the next decade Social Security is due to grow by 5.5 percent a year, Medicaid by almost 8 percent a year and Medicare by 9 percent a year. We have an explosion of government spending, and yet many in this Chamber want to spend even more, at the expense of American families. Where is this leading us? Mr. Chairman, most recently, the Chairman of the Federal Reserve Alan Greenspan said, As a Nation we may have already made promises to coming generations of retirees that we will be unable to fulfill. According to the General Accounting Office, Social Security faces a serious and growing solvency and sustainability challenge that is growing as time passes. According to the Director of the Office of Management and Budget, referring to Social Security, such chronic and growing obligations in the Social Security program are properly understood by the American public, including investors, as a sign that the program is out of balance and headed for bankruptcy. According to the trustees of the Social Security and Medicare trust funds, ``We do not believe the currently projected long run growth rates of Social Security and Medicare are sustainable under current financing arrangements.'' The Comptroller General of the General Accountability Office said, ``How this is resolved could effect not only our economic security but our national security. We are headed to a future where we will have to either double Federal taxes or cut Federal spending by 50 percent.'' Let me repeat that. We are headed to a future where we will have to double Federal taxes or cut Federal spending by 50 percent. Mr. Chairman, that is why it is so critical that today, not tomorrow, not next week, that we do something, something to begin to control spending in the United States Congress. First, I want to congratulate the gentleman from Iowa (Chairman Nussle) of the Committee on the Budget for bringing forth to this body a truly historic budget, the most fiscally responsible budget we have seen since the Reagan era, a budget that is serious about protecting the family budget from the Federal budget. But a combination of hope and fear has propelled me, on behalf of the Republican Study Committee, to offer an alternative budget. The hope is, as historic as the gentleman's budget is, maybe given the seriousness of the challenge we have, maybe we can do just a little bit better on spending discipline. My fear is, as great as the budget is that the gentleman from Iowa (Chairman Nussle) has brought to this House, I want it to be a real budget. I want to ensure that we have the mechanisms in place to ensure that we enforce the spending discipline. How does this particular budget differ from the committee budget? There are a number of similarities, but let me describe a couple of differences. Whereas in the chairman's budget we have a discretionary savings of a little less than 1 percent, this budget would achieve savings of roughly 2 percent. It would further double the reconciliation savings in the Nussle budget. And finally, it includes a number of enforcement mechanisms to ensure that we can live with this budget, that the budget is something more than a suggestion, the budget is something more than a goal or an aspiration, that it is actually a limit on spending, that we draw a line in the sand and say we are going to take this much money away from American families and say this is it, we are going to live within our budgets. Mr. Chairman, budgets tend to be about priorities; and, indeed, this budget, the Republican Study Committee budget, is about priorities. We have a priority of saving Social Security, and we congratulate our President for bringing this issue to the American people. I believe when the American people focus on Social Security, what they will realize is that government has been part of the problem. They have raided the Social Security trust fund 59 times. Government took the money away from Social Security; government should give the money back. How does government give the money back? Government can grow at a slower rate than it has in the past. The second theme of this budget, the second priority of this budget, is we believe we have to protect the family budget from the Federal budget. Is there really a compelling reason as families have to get around their kitchen table and have to make tough decisions that we in Congress cannot do the same thing? We do not believe that the Federal budget should grow faster than the family budget, and this budget achieves that goal. Finally, we believe a budget ought to be a limit on spending. We ought to decide, subject to emergency spending that we understand, that we ought to draw a line in the sand and say this is all we care to take away from the American people; and when we tell the American people this is our budget, then this is the budget that we will live with. Mr. Chairman, I reserve the balance of my time.

Mr. HENSARLING. Mr. Chairman, I yield 3\1/2\ minutes to the gentleman from New Jersey (Mr. Garrett), a member of the Budget Committee and a budget leader within the Republican Study Committee.