Rand Paul – The Fiscal Cliff Deal
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[Rand Paul – The Fiscal Cliff Deal]
[Randal Howard “Rand” Paul (January 7, 1963)]
There’s something called the Fiscal Cliff approaching, and we must do something about it or we will go over the a cliff which if you wanna fix and do something about going over a cliff you have to know what is the Fiscal Cliff. Well, the Fiscal Cliff apparently has taxes going up, so it must be a bad thing if your taxes go up. People have said “Well, it’s kind of like having people drowning, and people are drowning. What was I thinking that’s a bad thing.” So what are they telling us? Let’s save 98 out of 100 of them. Well, that sounds pretty good. I’m for saving as many as we can, but that sort of implies that our policy is that drowning is a good thing. That were gonna let 2% drown. That raising taxes is bad if it happens to everyone. It’s a cliff, but it’s ok if it happens to 1 or 2 people. Maybe you don’t know them, and maybe there rich people and we don’t care.
Does anybody work for rich people? Anybody know somebody who works at a car lot selling expensive cars, but that person only makes $40,000 a year, but he sells cars that are purchased by rich people? Anybody ever remember the yacht tax? We were gonna go get those rich people. Had a special tax on yacht’s. Guess who lost their jobs? The working guy who made $50-60,000 a year making the yacht’s because the rich people went to the Bahama’s to buy their yacht’s. This isn’t about getting rich people. This is about what it will do to the economy. What it’s going to do to the average middle-class person who works for a rich person. But you have to understand what the fiscal cliff is. You have to understand that the President is telling you that it’s a cliff and that everybody on television thinks it’s terrible to go over the cliff, but what is the cliff? Taxes going up. But if it’s bad for taxes to go up for a bunch of people, why is it good for taxes to go up on a small portion of people? They say that they rich, they can afford it.
Here’s the problem: the rich pay most of the taxes in our country. The top 2% pay half the taxes. So what you’re saying is they’re rich and they can absorb it, but that’s half of the nations income will have increased taxes. You will take money from the productive sector, which is the private sector, and you will put it in the non-productive sector which is Washington. So if you want ditches to be dug, and then filled up again, send more money to Washington. But if you want jobs to be created, if you the economy to thrive, you should want to leave that money in your community. It shouldn’t matter to you who’s money it is, or who has it. If you want that money, in my case, we want that money in Kentucky. We don’t want to send it to Washington because theirs no objective evidence that the money is well spent up here. There is no objective evidence that we are good with money up here, so we shouldn’t send more money up here. We should leave more money in the private sector.
Now Milton Friedman recognized this when he said “Nobody spends someone else’s money as wisely as your own.” That in a nutshell, that in a sentence, explains to you why the private sector is more efficient that the public sector. The public sector; it’s not our money, it’s not their money. So, those of us who here will spend it, that’s why they spend a trillion dollars more than they have each year. That’s why they break their own budgetary rules. That’s why there’s no budget. That’s why we live in an era of runaway spending. That’s why your government is insolvent, your government is bankrupt, and guess what, when you raise taxes on 2% of the people, there’s a chance you don’t get anymore tax revenue’s. Because when you raise tax rates, you sometimes get less revenue. And the converse is true. Sometimes you lower rates, and you actually get more revenue.
In the 1920’s, we lowered tax rates, we got more revenue and guess what, the rich paid a higher percentage of the revenue when we lowered rates. We did it again in the 1960’s, under Kennedy. We did it again under Reagan. We grew at 7% one year under Reagan because we lowered rates, and unleashed an economic boom. That’s what you want. Do you want government just as envious and jealous who wants to punish the people? Or would you want government as sane and rational policies that allow the government to grow? That’s what happened in the 1980’s. We had 7% growth one year. We had millions of jobs created. Mark my words, you will raise tax rates, and you will feel good cause you went after and you got those rich people, and you said you were. You campaigned against rich people, and you got enough envy whipped up in the country and you’re gonna get ‘em. Your gonna stick it to those rich people. But guess what, you may not get anymore revenue. You may not get anymore economic growth, but you can say “I stuck it to the rich people.” That’s what we’re talking about and some of you may say “Well, we’re gonna do this, but maybe we’ll do something about spending. The one thing they’ve taken off the table is spending restraint. There will be no spending restraint. In fact, whatever deal comes out of here will increase spending. That’s part of the deal. We’re gonna raise taxes and we’re gonna raise spending . Tell me what’s good about that.
[Rand Paul] Source: LYBIO.net
There is a cliff approaching, but it’s not the cliff you hear about on tv. The cliff is a debt cliff. There’s a debt crisis in our country. We now have a debt that equals our GDP. Our debt equals our economy. We are now borrowing while we are today blithering over a deal that will do nothing. We will borrow $4 billion today. We are borrowing $50,000 every second. Each man, woman and child in this country owes more per capita in debt than they do in Greece. So, by all means, let’s complete a deal so we can go home. Let’s raise taxes. Let’s stick it to those rich people. Let’s not touch spending, and let’s pretend as if we’ve done something. The deal will do absolutely nothing to save this country.
Two-Thirds of your spending appears entitlement. Presidents taken entitlements off the table. We will not reform the entitlement programs. Why are the entitlement programs broken? Is it Republicans fault or Democrats fault? No, it’s your great-grandfathers fault. Had too many kids. It has nothing to do with partisan politics. There was a whole bunch of babies born after the war and then there have been less babies born with each generation. It’s nobody’s fault, but it’s not working. We spend more on Social Security that comes in as taxes. That’s a problem. On Medicare, it’s even worse. We spend $3 for every dollar you collected Medicare. Anybody thinking that’s gonna work? It’s been going on for a long time now and it’s getting worse. We owe $35-40 trillion dollars on Medicare, and it’s not getting any better. And so what do your retirement groups AARP say absolutely don’t touch it. Oh that’s great, that’s part of the solution. Don’t touch it. What’s the President say? Entitlements off the table. What does the Majority Leader say? We won’t do anything about entitlements. Oh well great, this is going to be a real great solution. We’re really gonna do a lot more. We’re gonna stick it to rich people. Hope nobody works for these rich people. Hope nobody sells to any of this stuff to rich people. So the thing is, is look at what’s going on up hear and when you ask for action, don’t ask for any action. We have to figure out what the problem is before we can get to what we need to do.
People say “Well, we raise taxes. We just need more revenue. Spending as measured as a percentage of our economy. Four years ago, we were spending 20% of our GDP. We’re now spending 25% of our GDP. So when we say on our side it’s a spending problem, it absolutely is. It absolutely is and it’s out of control, and guess what? Most of it is called mandatory spending. That means entitlements. You can’t do anything about it. They’re now taken off the table.
Now, about a year ago, you may have remembered there was this big debate. The Budget Control Act was this big debate over raising the debt ceiling and they attached to it some slowdown in spending and these were not cuts. The Sequester is not a cut in spending. It’s repeated all the time on TV that the Sequester is a cut but it’s not a cut. It’s a slowdown of the rate of growth. But it’s at least going in the right direction. So what’s the one thing that we hear now that’s gonna be part of this deal? We’re gonna get rid of the Sequester. So the one even pretend make-believe attempt to try to slow down spending, they’re gonna jettison it. They’re gonna kick the can down the road, but we’re gonna get those rich people. We’re gonna tax those rich people.
We have to wake up soon as a country. We really literally are insolvent. And some say “Well, we are a great and powerful country, bad things could never happen to us.” It can, and it has happened to great civilized countries. Do you know what they do? Blatant civilized countries can destroy their currency. We have printed trillions upon trillions of dollars, and we’re in danger of destroying the very value of your currency. So, instead of having a President who runs around saying he’s going to stick it to rich people, what we really need are honest people to go around the country and say to people “If you are working class or your retired, the government is stealing from you. The government is stealing your savings through big government. So, on one hand they offer you something, they offer you bottles, they offer you something for free. Here’s a cell phone for free. Just take the cell phone and vote for me. It’ll be okay. The problem is it’s not free. On the one hand you get the free cell phone, on the other you’d get $4 gas. On the other hand, you get food rising. Widened prices go up because we run a deficit up here, giving you free stuff, and then we print up money to pay for it, and that steals money from what you have. It’s not that gas is more precious. Gas is rising because the value of the dollar is shrinking. Food is rising because the value of your dollar is shrinking. So, big government is not your friend. Deficits are not your friend, and we hang in the balance up here, and nobody is serious about it.
[Rand Paul] Source: LYBIO.net
What’s the one thing that’s been taken off the table? Spending. We will not cut any spending. So, we’re looking for a deal that will raise taxes, which everybody seems to be uh… equate with drowning, except we’re only gonna make a few people drown and their rich anyway, but I think drowning is a policy. Drowning even if it’s selective drowning. Being in favor of selective drowning is not a good policy. So, what I’ve asked is when I asked people is let your representatives know that you’d rather have some kind of serious fix to the problem than kicking the can down the road. You’d rather have them actually do something that would allow the economy to grow, would allow jobs to be created, as a consequence government would bring in more revenue. The only thing proven to bring in more revenue up here: economic growth. What’s going on right now? We’re growing at a little under 2%. When the President 2 years ago extended all the tax rates, and chose not to raise tax rates, we were growing faster and he said “We don’t wanna rock the economy.” and he agreed to extend all tax rates, but now I think he’s hell bent on raising taxes. So realize that what you’re going to get is raising taxes, more money taken out of the private sector given to the government, the inefficient sector. Don’t count on that new money coming in going to make the debt smaller. Count on it funding more programs. You’ll notice, if you look carefully at whatever this Fiscal Cliff deal is, that there won’t be spending cuts, but there will be spending proposals. So, were gonna try to tax rich people more and get more money. May not work. Often you raise rates and make less revenue. We’re gonna try that, but take the money that we get from the rich people, and immediately spend it on more foolhardy programs. What we’ve been doing up here. So, we’re not gonna fix the problem, we’re going to perpetuate the problem. So what I would argue for is we should be doing the opposite. We the Republican Party, the party of limited government and low taxation, should have no part in this. We should have no fingerprints on this and we should in no way support anything that raises taxes because it’s bad economic policy. So I for one, will not support any proposal that comes out that does not cut spending and raises taxes. Thank you Mr. President. I yield my suggest the absence of a quorum.
Rand Paul – The Fiscal Cliff Deal Is A Joke. We should in no way support anything that raises taxes because it’s bad economic policy. Complete Full Transcript, Dialogue, Remarks, Saying, Quotes, Words And Text.