War and Recession


by Sen. Chuck Grassley, of Iowa


 

The president in January spoke with confidence and resolve during his first State of the Union message before Congress. Not known to mince words, President Bush readily acknowledged the United States is at war and struggling to shake an economic recession. But he immediately reassured America that the state of our union has never been stronger.

 

Even some of his harshest critics agree the 43rd president has conducted an outstanding job in the four months following the terrorist attacks of Sept. 11. In his message before Congress, the president seized the opportunity to inspire confidence among the American people to rally together for what’s sure to be a long fight against tyranny and terrorism. In uncommonly plain language, the president also fingered three nations -- North Korea, Iran and Iraq -- and put them and Americans on notice that he would not wait around for them to unleash weapons of mass destruction against the United States.

 

In his 48-minute speech, the president made clear the federal government will do whatever it takes to protect our national, domestic and economic security. To achieve these goals, the president projects a deficit in his budget proposal for fiscal 2003. As a fiscal conservative, I have worked for years to rein in the big spenders and erase the red ink that stained the federal ledgers for three decades. In 1998, it was like a dream come true when for the first time since 1969, the federal government ran a surplus. Now after four years of running an annual surplus, the realities of war and recession are making it necessary to reverse course and deficit-spend for the short-term.

 

While few in Congress will argue against the president’s proposal to substantially beef up military and homeland security spending, the extraordinary unity among lawmakers after Sept. 11 will be tested when it comes to domestic spending and tax relief. A long-running philosophical divide exists in Washington between the tax cutters and the big spenders. Now the president’s critics argue the bipartisan tax relief package enacted last summer ought to be repealed or delayed because of so-called negative budgetary effects. But those who want to repeal, delay and even raise taxes are flat wrong.

 

For starters, they base their rationale on two false premises. The first assumption assumes future tax relief will have no effect on the growth of the economy. Wrong answer. Tax relief helps jump-start new business, spur investment and create jobs, especially among small businesses, the biggest job generator in our economy. Secondly, big spenders believe growing the government, i.e., in both federal revenue and federal spending, is necessary to address the nation’s "priorities." That too is wrong. Throughout our history, the federal government hasn’t taken more than one-fifth of our nation’s income in taxes. Remember, taxpayers foot the bill and Congress can’t provide more government than they are willing or able to pay. Even more, our generation should not live high on the hog and leave the bill to our children and grandchildren.

It may appear as though the time is ripe for the tax cutters and the big spenders to have their cake and eat it too. As a senior member of the Senate Budget Committee, which determines the budget blueprint for federal revenue and spending, I’ll work to keep the foxes out of the hen house. The war and recession should not be used as scapegoats for giving lawmakers a blank check in this election year. While I agree we must do what it takes to defend freedom, protect our homeland and bring prosperity back to America, we also must keep government affordable and accountable to the American people.