Folks paying attention to the budget debate in Washington this spring got to see some fireworks well before the Fourth of July. As Congress neared completion of a $2.2 trillion federal budget, the usual give-and-take among lawmakers heated up quickly when the narrowly divided Senate and House of Representatives sought to reach agreement on tax cuts aimed at re-fueling the economy.
The debate focused on the president’s plan to grow the economy and create jobs. In January he proposed a $725 billion tax relief package spread out over 10 years to stimulate new business investment, boost consumer spending and soothe sluggish stock markets. I agree with the president’s bold plan to accelerate the U.S. economic recovery and applaud his leadership. Lifting the tax burden on working families, consumers, entrepreneurs, investors and small business owners is the best fiscal policy to trigger economic growth and job creation.
The budget debate brought to mind an old saying. If you can’t take the heat, get out of the kitchen. With more than 20 years of service under my belt in the U.S. Senate, let’s just say I’ve grown some pretty thick skin. Thankfully, my time spent in Washington hasn’t also made me thick-headed. So despite my desire to have the Senate pass a budget with the president’s entire jobs and growth package intact, at this time it was virtually an impossibility in a narrowly divided Senate.
Rising deficits caused a few senators who otherwise agree on tax relief policy to oppose the size of the president’s plan at this time. I share their sincere concerns about deficit-spending. I was raised on the philosophy a penny saved is a penny earned. If only the big spenders would embrace the virtue of fiscal restraint on the spending side of the ledger, there would be plenty of room on the revenue side to enact the president’s economic growth package.
After countless conversations with my moderate Republican and Democratic colleagues, it was clear we simply didn’t have the necessary votes to cross the finish line. And that’s when I knew that half a loaf was better than none at all.
In the congressional election last fall, voters gave Republicans the opportunity to lead in both houses of Congress. When the Democrats controlled the Senate last year, they failed to deliver a budget resolution for the first time in 26 years. This caused havoc later in the year and ultimately the Senate adjourned having completed only two of 13 spending bills. That’s an irresponsible way to run the people’s business. No budget resolution means no spending ceilings. That spells disaster for taxpayers.
As a member of the Budget Committee, I knew it was essential to reach an agreement on the budget blueprint for the coming year. That’s because without the filibuster-proof protection of a budget resolution, the Senate would require a 60-vote super-majority to pass any tax relief. In a 51-49 Senate, that certainly puts a meaningful jobs and growth package out of reach. That’s called political reality.
As chairman of the Senate Finance Committee, I have the opportunity to write the specifics of tax legislation. To win the support of two key senators, one of whom serves on my committee, I pledged to keep the tax relief package at $350 billion in the Senate and during negotiations with the House of Representatives. My agreement secured their votes on the budget resolution and the Vice President cast the tie-breaking vote to pass the budget resolution in the Senate.
The night before the Senate’s budget drama unfolded, the House of Representatives passed a budget providing for a $550 billion tax relief package. When House leaders learned about my agreement, tempers flared. They proved tantrums aren’t restricted to the two years and younger crowd. Despite the red-hot rhetoric, the volcanic outbursts didn’t peel any skin off my nose. Obviously, my best efforts to secure tax relief in the Senate disjointed theirs.
At least now with a budget plan in place, we can get to work on the people’s business. It means we can enforce fiscal discipline in the year ahead. We can move forward with tax policy that will help grow the economy and create jobs. Hopefully we’ll get the job done by the time the real fireworks light up the sky on the Fourth of July.