Gang of 6 Proposal

Floor Speech

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Mr. SANDERS. Mr. President, if there was ever a time in the modern history of America for the American people to become engaged in what is going on here in Washington, now is that time. Decisions are being made as we speak which will impact not only our generation but the lives of our children and our grandchildren for decades to come. I fear very much that the decisions being contemplated are not good decisions, are not fair decisions.

Right now, there is a lot of discussion about two things: No. 1, the importance of the United States not defaulting for the first time in our history on our debts--I think there is increased understanding that would be a disaster for the American economy, that would be a disaster for the world's economy, and we should not do that--but, secondly, there is increased discussion now on long-term deficit reduction, how we address the crisis we face today of a record-breaking deficit of $1.4 trillion and a $14 trillion-plus national debt--a debt, by the way, that was caused by two unpaid-for wars, huge tax breaks for the wealthiest people in this country, a Medicare Part D prescription drug program written by the insurance companies, and the lack of revenues coming in because of a recession caused by the greed and recklessness and illegal behavior on Wall Street.

Be that as it may, regardless of how we got to where we are right now, there are efforts to develop long-term deficit reduction plans. One of them has to do with a so-called Gang of 6. While we do not know all of the details of that proposal--in fact, we never will because a lot of that proposal boots the issue to committees, such as the Finance Committee, that have to work out the details, and no one can know what those details will be at this time--I think it is fair to say that Senator Coburn, Senator Crapo, and Senator Chambliss deserve a word of congratulations. Clearly, they have won this debate in a very significant way. My guess is they will probably get 80 or 90 percent of what they wanted, and in this town that is quite an achievement. They have stood firm in their desire to represent the wealthy and the powerful and multinational corporations. They have threatened. They have been very smart in a number of ways. They have been determined. And at the end of the day, they will get 80 or 90 percent of what they want.

That is their victory, and I congratulate them on their victory. Unfortunately, their victory will be a disaster for working families in this country, for the elderly, for the sick, for the children, and for low-income people.

I did want to mention, based on the limited information we have--and as I get more information, I will be on the floor more often, but I think it is important to at least highlight some of what is in this so-called Gang of 6 that the corporate media, among others, is enthralled about.

Some may remember that for a number of years leading Democrats said: We will do everything we can to protect Social Security, that Social Security has been an extraordinary success in our country, that for 75 years, with such volatility in the economy, Social Security has paid out every nickel owed to every eligible American.

I have heard Democrats say Social Security has nothing to do with the deficit. And that is right because Social Security is funded by the payroll tax, not by the U.S. Treasury. Social Security has a $2.6 trillion surplus today and can pay out every benefit owed to every eligible American for the next 25 years. An enormously popular program, poll after poll from the American people says: Do not cut Social Security.

Two-and-a-half years ago, when Barack Obama--then Senator from Illinois--ran for President of the United States, he made it very clear, if you voted for him, no cuts in Social Security. Yet what Senators Coburn, Crapo, and Chambliss have managed to do in the Gang of 6 is reach an agreement where there will be major cuts in Social Security.

Do not let anybody kid you about this being some minor thing. It is not. What we are talking about is that under this so-called Gang of 6 proposal, Social Security cuts would go into effect by the year 2012--virtually immediately. What that means is that 10 years from now, the typical 75-year-old person will see their Social Security benefits cut by $560 a year, and the average 85-year-old will see a cut of $1,000 a year.

For some people here in Washington--maybe the big lobbyists who make hundreds of thousands of dollars a year--$560 a year or $1,000 a year may not seem like a lot of money. But if you are a senior trying to get by on $14,000, $15,000, $18,000 a year, and you are 85 years old--the end of your life, you are totally vulnerable, you are sick--a $1,000-a-year cut in what you otherwise would have received is a major blow.

So I congratulate Senator Coburn, Senator Crapo, and Senator Chambliss for doing what President Obama said would not happen under his watch, what the Democrats have said would not happen under their watch: major cuts in Social Security.

But it is not just Social Security. We have 50 million Americans today who have no health insurance at all. Under the Gang of 6 proposal, there will be cuts in Medicare over a 10-year period of almost $300 billion. There will be massive cuts in Medicaid and other health care programs.

There will be caps on spending, which means there will be major cuts in education. If you are a working-class family, hoping you are going to be able to send your kid to college, and that you will be eligible for a Pell grant, think twice about that because that Pell grant may not be there.

If you are a senior who relies on a nutrition program, that nutrition program may not be there. If you think it is a good idea that we enforce clean air and clean water provisions so our kids can be healthy, those provisions may not be there because there will be major cuts in environmental protection.

I have heard some people say: Well, all that is not so good, but at least finally our Republican friends are saying we need revenue and we are going to raise $1 trillion in revenue.

Well, Mr. President, let me ask you this. If you read the outline of the Gang of 6 proposal, which is admittedly vague--I think they would acknowledge that; they do not have all of the details--there are very clear provisions making sure we are going to make massive cuts in programs for working families, for the elderly, for the children. Those cuts are written in black and white.

What about the revenue? Well, it is kind of vague--kind of vague. The projection is that maybe we will raise over a 10-year period $1 trillion in revenue. Where is that coming from? Is it necessarily going to come from the wealthiest people in this country? Is it going to come from large corporations that are enjoying huge tax breaks? That is not clear at all.

What happens if we do not reach that revenue of $1 trillion? What mechanism is in place to say it happens? That mechanism, in fact, does not exist. What we do know--and, in fairness, I think the authors of this proposal would acknowledge not all the details are out there, but certainly I want middle-class families to understand when we talk about increased revenues, do you know where that may come from? It may come from cutbacks in the home mortgage interest deduction program, which is so very important to millions and millions of families. It may mean if you have a health care program today, that health care program may be taxed. That is a way to raise revenue. It may be that there will be increased taxes on your retirement programs, your IRAs, your 401(k)s. But we do not have the details for that. All we have is some kind of vague promise that we are going to raise $1 trillion over the next 10 years. There is no enforcement mechanism and no clarity as to where that revenue will come from.

So I think it is terribly important that the American people become engaged in this debate, which will have a huge impact not only on them, but on their parents and on their children. I believe very strongly what the American people must fight for is not a big deal or a small deal but a fair deal.

At a time when the wealthiest people in this country are doing phenomenally well--their effective tax rate is the lowest on record--at a time when the top 400 individuals in this country own more wealth than 150 million Americans, at a time when corporate profits are soaring, and in many instances these same corporations pay nothing in taxes, at a time when we have tripled military spending since 1997, there are fair ways to move toward deficit reduction which do not slash programs that working families and children and the elderly desperately depend upon.

I believe the issue we are dealing with is of enormous consequence. It is clear our Republican friends have succeeded, and I congratulate them on getting 80, 90 percent of what they wanted.

I want people to think back 3 years ago--just 3 years ago--to think that there would be a serious proposal on the floor of the Senate with all of these devastating cuts. I think very few people would have thought that possible. So I congratulate my Republican colleagues for their apparent victory. But this Senator is going to fight back. I was not elected to the Senate to make devastating cuts in Social Security, in Medicare, in Medicaid, in children's programs, while I lower tax rates for the wealthiest people in this country. That is not what I was elected to do, and I do not intend to do that.

So I hope the American people get engaged in this issue, stand, and demand that the Congress pass a fair and responsible deficit reduction program, not what we are talking about today.

With that, I yield the floor.

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