tv Senate GOP News Conference on Inflation Reduction Act CSPAN August 5, 2022 7:13pm-7:49pm EDT
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dallas at 8:30 p.m. eastern on c-span. and on the c-span now cap. -- app. now, comments from south carolina republican senator lindsey graham, the top republican on the senate budget committee. he along with other senate republicans talk to reporters about their strategy regarding the democratic proposal on taxes,, climate change, and health care. this is 30 minutes. >> thank you for being here today. as we all know, the american people are struggling, suffering, under joe biden the
democrat's inflation. why do we have this? last march they decided they needed to spend an awful lot of taxpayer money on the economy and we said it would raise costs for everybody and it has. fast forward to where we are now, democrats are at it again, trying to increase taxes and government spending at a time of high inflation and recession. a 40 year high of inflation, a lot related to energy, which is what we are here to talk about today. the specific impacts of what the democrats will try to do, and it will raise energy costs for american families. joe biden is trying to take a victory lap, saying the price at the pump is not as skyhigh as it was earlier. so much of inflation is related to energy. what we know is, the price of gas today is still $2 more a
gallon then it was before joe biden took office. there has been a decrease in demand because people cannot afford to drive at $5 a gallon of gasoline. they change the way they live, the way they drive to work. what we hear from folks that look at this, the average family has spent over $1500 the past year for energy higher than the year before, a result of joe biden and this administration. people want energy that is affordable, available, reliable. the country is looking at the fact we may face blackouts as summer progresses. experts have said 2/3 of the country will be subject to blackouts. that does not seem to stop democrats who want to raise taxes on american energy, as well as energy that we import from overseas. they have in this bill a fee on
every barrel of oil imported. billions of increased taxes which will be going to pain at the pump. this is joe biden who just a year ago at the glasgow climate summit in scotland asked vladimir putin to reduce more russian oil to send to the u.s., and tehran, venezuela, hat in hand to saudi arabia, send us more. that will all be taxed at a higher rate, taxing every barrel more than before. and he indexed it to inflation. at a time when we have 9.1% inflation, joe biden and the democrats want attacks growing at the rate of inflation, which will make inflation worse. that is what these folks are up to. pain at the pump will get worse.
it is not just the cost to drive your car, it is energy to heat your home, energy for electricity. joe manchin agreed to something the folks in west virginia and wyoming said, what the heck are you thinking? it has to do with coal. coal associations on the mansion-schumer bill from the west virginia coal association, joe manchin's home state. why support anything chuck schumer, joe biden, nancy pelosi, john kerry want for coal? that is what the people of west virginia are asking their senator joe manchin. they say it is incomprehensible why any miner would support the legislation. that is the impact of folks at home that joe manchin apparently is not paying attention to at all. what is the money going to be used for?
there is the climate slush fund. the sorts of things joe biden ought to be familiar with. when he was vice president there was up project, waste of government money. many of these projects under the grand title of one big climate slush fund. then there are subsidies for electric vehicles. for rich people for electric vehicles you can make up to $300,000 a year per family. electric vehicles cost $80,000. that is what we are looking at. at a time when families of this country are hurting, inflation is eating into people's paychecks. people are very concerned about their future. even if wages are going up a little, they are falling further behind the families of america
each month that joe biden has been president because costs have gone up so high. democrats will make it worse if they pass this reckless tax and spending bill. sen. cassidy: one of the things we continue to point out, as you know, senator graham asked senator crapo for information. the inflation numbers came out yesterday, what the numbers will be by the cbo. they calculated there would be no discernible beneficial impact as a result of passing this massive spending bill, which will not reduce inflation. the cost of energy, 40% when it
comes to gas, utility services. at $4 a gallon or higher in places around this country. all of the taxes in this bill, much will be geared toward increasing the cost of energy. $60 billion on domestic and foreign oil production. the tax on imported oil is in their. there are taxes through this entire bill, all targeting domestic energy production in this country. and taxing imported oil as well. $60 billion for environmental justice grants. what does that mean? the american people will be trying to figure out. $1.9 billion for canopy coverage in urban areas. i am sure that is something on the hearts and minds of every american. $30 billion and a climate slush
fund to be used for democrat favored products -- projects. it is a big tax increase on job creators in the country that will not address the inflation crisis. and the economic recession we are already in. it will spend a lot of money on things in this country that are not a priority for the american people when they are experiencing four decade high inflation and gas prices will continue to hurt their pocketbooks on a daily basis. i am a supporter of renewable energy. our state of south dakota leads the way. but this is not the way to address a crisis in this country. the american people deserve better. we want to defeat this bill. and we have amendments designed to target these areas of the bill. >> america will be like this
room, hot. if we keep doing this. here is what i think. i think it is more likely the taliban did not know -- was in kabul than this will stop inflation. it takes a lot -- a long time -- maybe they were just visiting. this bill will not lower inflation. the same people who said the american rescue plan would rescue you has thrown you back into the water. we are raising gas taxes in the name of lowering inflation. he goes to saudi arabia to beg the saudis to produce more foreign oil and the response of this bill is to introduce a new tax on imported oil. in 1995 when i first came up, the first thing republicans did was repeal the excise tax on foreign imported oil.
it was at 9.7 cents. this is a vampire tax, it comes back from the dead. now it is 16.4. not only did they bring back attacks on oil in this bill that they used to have in 1995, it is higher than it was. tell me how that lowers gas prices. tell me how that lowers gas prices. you do not have to believe me or any of us. the gold standard according to senator manchin said in 2022, a negligible effect on inflation and in 2023 inflation could go up or down by 0.1%. that is the cbo. warren says it does not reduce inflation. who do we believe? the people who looked at this, or the same people who brought you the american rescue plan? i would say this to my democratic colleagues.
to mansion and synema, thank you for holding the line on the senate filibuster. thank you for doing things to make america a less radical place, but you are going to be held accountable by your voters on this issue. the democratic party has one play, tax and spending. show me a group of democrats in any room in america and they are thinking about ways to increase your taxes and spend your money and it is not working. i would conclude with this. on the foreign policy front, the biden administration is dumb and weak. they are undercutting a bill i have with senator menendez -- they do not want to provoke china. we withdrew from afghanistan less than a year ago. now we know the leader of al qaeda was staying in a house owned by the number two guy in the taliban government. we have a reporter they say is secure i say is incredibly
broken. the bottom line is, we live in dangerous times economically and foreign policy-wise. every policy choice we make, that delayed helping the ukraine before the invasion, that delayed sanctions on putin because they did not want to be provocative, they are trying to back me and menendez down in helping taiwan because they do not want to provoke china. when it comes to domestic difficulties, they are passing a bill that will make it less likely people will invest in factories and equipment. a 15% minimum tax according to cbo dis-incentivizes investment in factories, equipment, capital expenditures. gas prices will go down dramatically because the economy is coming to a halt. we are in a recession. this will make it worse. to senator manchin, they are
supposed to pay you back on the continuing resolution. you are supposed to get some things on permitting reform, some special deal for some pipeline in west virginia on the continuing resolution. i will not vote for a resolution that is part of a political payback scheme. i will come up with ideas for south carolina to help our energy needs. if you put my provision on the cr, i will vote for yours. every senator should come up with provisions to help their state and ask our democratic friends when it comes to the resolution. if they do not do that, we should have a continuing resolution that is clean. senator manchin, if you think you will get 60 votes against sweeteners that cannot be done in reconciliation, you need to
think long and hard about what you are doing. >> senator graham put me down as a no as well. i think i, no on it right now. you are right, it is in the dna of democrats to tax and spend. i believe the people of kansas have been talking to the people in dr. barrasso's state of wyoming. when i go home, my family, friends, high school classmates, they put their faith in their hands and asked me, what the hell is joe biden doing? what the hell -- what the hell is joe biden doing? why does joe biden insist on throwing gasoline on this inflation fire? why does he want to destroy our jobs? we all realize raising taxes on corporations will destroy manufacturing jobs.
wichita, kansas is the aerospace capital of the world. we make small jets, small airplanes. across the state we have small agriculture companies. i think of trailers in marysville, kansas. how they are going to lose jobs because of this tax. why the hell does joe biden want to drive prices up, make the gas of price higher, drive utilities up, why does he want to destroy the economy? they asked me a tougher question, why would we give special tax breaks to one industry, the chip industry, but drive others out? it is hypocritical. i do not have answers to these questions, but i do have an assessment. joe biden is reactionary. his administration is reactionary.
whether it is economic or foreign policy, he creates a crisis and follows it with more crisis. it is a compounding of stupid decisions. here is one in this legislation. they will double the number of irs agents. wow. they will double the number of irs agents. i want everyone to pay their fair share of taxes, but you know who will feel the brunt of that? small businesses and hard-working americans. when you get an audit, you have done everything perfect, but pay $5,000 to $10,000 to defend that audit, assuming you win. any business of size will spend $20,000 or $30,000. how does that help our economy? i want to talk about prescription drugs for a second. how do they think taking money from medicare savings and using
it to subsidize wealthy americans' ada plans is fair? if you take money from medicare savings, shouldn't it go back into medicare? how asinine a thought process do we have? why do they want to destroy the innovations? i want to talk about hepatitis c. the docrtor should -- the doctor should talk more about this. it used to be a death sentence, hepatitis c. you could spend $1 million on every patient going in and out of the icu. if you could find a liver for them it was a $500,000 transplant. we had the first hepatitis c drug seven years ago. it was really expensive, $8,000.
18 years ago, and you would take it for eight weeks, and it would save someone's life and avoid the million-dollar expenditure. now we have competition in the market. drug prices are a fraction of this. think about alzheimer's. the state spends over 300 million dollars a year on alzheimer's. we cannot do this through tax and spend policies. it takes american innovation. i cannot drive the cost down unless we have a miracle drug. the legislation will delay or altogether stop that innovation. that drug that may be three years away may be 10 years away. i would challenge any press person in the audience to talk to venture-capital people that invest in pharma. they are telling me they are
shutting it down. they are not going to invest in high-risk innovation if there is not an opportunity. there is also something we are for. i do want to drive prescription drugs down. we know how to do that. there will be an op-ed in fox news about driving prescription drugs down. the list prices are growing less than inflation the last several years, but the out-of-pocket prices are going up. we would love to discuss that at another press conference. thank you so much. >> i consider myself a hepatology us to who treats -- hepatologist, who treats liver disease. my constituents like to talk about inflation. one said, joe biden should live where real people live.
they have no understanding of the lives of people they represent. folks don't drive a 15-year-old pickup trucks because they do not want a new car. they don't drive new cars because they cannot afford one. high gas prices has made it worse. high utility prices, high grocery prices. when the title comes out, the inflation reduction act, everyone is encouraged. as previously noted, the wharton school of business says it increases inflation and a couple years. the cbo says it has a negligible effect one way or the other on inflation. autumn line, does not decrease inflation. remember the american rescue plan passed on a bipartisan basis. i now call it the american recession plan. this could be the american recession plan 2.0. people will not have the income
to buy that which they need to buy. 50% of the book value tax is on manufacturers. we are in an international jobs war. countries around the world, particularly china, are subsidizing manufacturers to move there. they subsidize them in a variety of ways. i would love to be pure free market, keep government out of everything, but we are losing the jobs war. congress saw and began giving credits for manufacturers to return. now, the left is looking at this and saying, those manufacturers, we have to increase those jobs. they have been taking care of that which congress has used to incentivize them to come back and hire more americans. but we are going to make them pay more. the national association of manufacturers says it will kill
200,000 jobs in the u.s. cbo says it will decrease investment in manufacturing. if you want to lose the manufacturing war, this is what you do. if you want to win, you don't do it. republicans want to win that and this bill shows that democrats wish to lose. one more thing. the climate impact. the bill says they are going to reduce emissions since 2005 by 40%. what they don't tell you, and this has not been independently verified. it is more like 35%. what they don't tell you is we have already reduce emissions by 17%. we are halfway to their goal. under current law, we are scheduled to reduce emissions to 34% by 2030. we are almost there. the improvement is marginal. they are only speaking about
u.s. emissions, not global emissions. since initially they will be driving manufacturing in asia, particularly china, to produce batteries and things to come here for ev's, we could have a global greenhouse gas emissions get worse. if they wanted to tout benefits, they should come clean as to what their analysis is and why they are not including the increased emissions that will occur in other countries because of this policy. there is more we can talk about. perhaps you have questions. i will yield. yes, ma'am? >> some democrats say republicans should vote for this package if they care about deficit reduction. the first question is, would republicans support the package if it did not have any new government spending and just addressed deficit reduction? >> let me point out that they said it will reduce by $200 billion.
our economy -- that's about 0.8% to 1.2% of the gdp every year. they will reduce that over 10 years. it will be less than a fraction of the .04% of our nation's gdp. >> if things go perfectly. >> this will be a total rounding error. that is what they are using to justify. if that is their strongest argument, it is a weak argument. >> do you think democrats truly care about reducing the deficit or is this a way to justify billions in new government spending for things they want? >> i don't think they are care and they are trying to get a fig leaf to justify billions in new spending. >> this is an important question. the deficit saving estimate is down to $100 billion over a 10-year period.
the gimmicks in build back better were exposed and that is why they lost manchin. the house claimed build back better cost $1.7 trillion. i asked cbo, if you took all the gimmicks out, if you made the child tax credit for 10 years and not two years, about every new program they introduce was limited to two or three years, which was alive. if you play it out over 10 years the actual cost was $5.9 trillion. when it came to adding to the deficit, they said it was $238 billion. when you do away with all the gimmicks, the deficit went up to almost $3 trillion. in this bill there is a gimmick. they have a limit on the obamacare subsidies. the subsidy in this bill goes to families of four making $300,000. if they take money from daycare to give subsidies to a family making $300,000, that goes away in three years. it is not going to go away.
if you play it out over 10 years, this adds to the deficit. >> can you walk through your voting strategy? >> i will let him do that. >> where do you see any real effort? >> here is where i am at. i vote for gun legislation thinking we ought to do some things to keep guns out of the hands of unstable people. a lot of people on my side did not agree but it made sense to me. i voted for the infrastructure bill. build back better was a disaster. it made sense to me. you voted for it, right? i have tried to work with them where i can. i voted for the chips bill. it was more expensive than it should have been because we should make chips here. you make a good point. before the ink is dry, they dropped this.
what will it be like? it will be like hell. they deserve this. as much as i admire joe manchin and sinema for standing up to the radical left at times, they are empowering legislation that will make the average person's life more difficult at a time they cannot afford higher gas taxes, at a time we create jobs it will be harder because incentives are gone. i am hoping we can come up with proposals that will make sense and they will abandon this jihad they are on to tax and spend. i will turn it over to john now. joe manchin, you have a game plan that counts on something you need to think long and hard about. >> i don't have a lot to add to that. >> these votes are going to be hard votes for the democrats. i think the question for both joe manchin and kyrsten sinema is, if any of these amendments
succeed at the end will you vote for the wraparound amendment? they both said they will not vote after they felt like they voted for a wraparound amendment and they were misled by their leadership and they would never vote for one of those again. if we have some success with amendments through this process, we will be targeting certain areas of the bill. the question is at the end are those amendments going to be an -- amendments that may change the bill, make it better? it might make it harder to pass in the house. i think we expected the democrats to fall in. as has been pointed out by my colleagues here, it is an article of faith with democrats in power they will raise taxes, , spend money and grow government. that is what they do. they did that last year. they will try to do it again right now.
we are obviously going to make those hard votes. >> there's a redline you feel they have crossed? when it comes down to these two senators it sounds like they crossed you personally. you used the word "jihad." >> all i am saying is, the american rescue plan took a -- took you on a functioning ship and put you on a lifeboat. the inflation reduction act throws you out of the lifeboat. to the point i'm trying to make to my colleagues, we work well together on things that makes sense. you are the same people that told us the american rescue plan would save us all. it gave us a 40-year high in inflation and recession. to manchin and sinema, i admire you at times and i oppose you now. i think what you are doing is you are empowering the most
radical people in this country to tax and spend when they can ill afford it. you are making it harder to get out of the recession we are in. you will increase gas prices. they need to be held accountable and i intend to do that. >> all of you have said we are in a recession. the labor department said in july we had half a million jobs. the unemployment rate at 3.5%. how is that consistent with the economy being in a recession right now? >> the definition of a recession is negative gdp growth in two successive orders. yes we have strong job growth. , the housing market is beginning to decline sharply. realtors are saying interest rates are having an incredible impact. i think housing is 25% of the labor market. by the way, when we speak of jobs we are not talking about government bureaucrats. some have been zooming from home since the pandemic started.
we are talking about working americans who typically work in manufacturing, construction. this bill goes after manufacturing. we have spoke about half of these taxes going to manufacturers. the cbo says that will decrease investment in new manufacturing facilities. construction will also go down. interest rates correlate. i'm pleased we have strong job growth but we are in a recession. it does not take much to look forward and see, for those americans who are most susceptible to the jobs war apparently democrats are trying to lose for us, in construction and mining, they will lose for us. >> if a republican was in charge, you would not be asking that question. we wouldn't be in a recession. there is a common theme. we have the lowest illegal crossings in december right after the election of 2020 in history.
we have the highest with no end in sight. the taliban were not in charge when trump left. they are in charge today. contrary to what the taliban says they were working with al qaeda. you have the highest gas prices may be -- in maybe forever. you have a 40-year inflation spike. you think this is an accident? do you think they are really unlucky? their policies are not working and they are doubling down on policies that don't work. go to south carolina and tell somebody this is not a recessionary economy. if you are able-bodied and you don't have a job in south carolina, i can get you one by midnight. people cannot find workers. >> a point on the recession. recession is when i go back home and the community bankers say what is going on? business is slowing down. why are people afraid to invest?
when people in the energy sector says we are afraid to invest money because of your president's policies. when folks i know that invest money for a living, when they want to grow jobs, my natural network i have spent the last 25 years with were entrepreneurs. people that love the business of doing business. they are scared to death to invest under this current environment. >> i want to get a quick reaction to president biden's statement this morning touting the jobs report and the economic plan saying it was boosting the middle class. >> it is always good when people are working. in the numbers this morning the labor force participation rate had dropped, which is a concern. if you talk to families, they are having a harder time keeping up. even if they are working, got a
raise, the raise has not kept up with the cost of inflation. families in this country are falling further and further behind and it is harder and harder to just keep up with where they were when he became president of the united states. >> are there any specific topics or amendments you think could put democrats in a tough spot? immigration, china policy? >> energy, inflation, the border, crime. expect to see amendments on all of those things. thank you for being here. >> remarks now from senate majority leader chuck schumer during