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Manage our countries physical health, and that starts with the developing of a responsible budget. We passed a budget out of committee in the eight years that republicans were in the majority. I wish my colleagues on the democrat side would have done the same. They have not seen it that way. So right now, we do not have a budget. The 10 Appropriations Bills that have passed have been largely partisan bills that exceed the caps. They are not going to go anywhere, because they just, they will not work. And it is very unfortunate that we are in the situation we are in. Host can you explain to the audience where we are at as far as the budget caps . Guest the budget control act put caps in place and go above those we must pass legislation to raise those caps. And we do not have a cap steel. The reason is our democrat colleagues will not come up with ways to offset that increase in spending. The tenant perspiration bills the tenant probation bills they have passed increased spending with no consideration for how it is going to be paid for. That is the critical part. And at the closer we get to that limit issue, the more critical of this is going to become. Host as of reporting this morning, nancy pelosi says possibly there could be a vote on the debt ceiling before the august recess. On if thatr thinking will happen or not . Guest i cannot tell you what the democrats are going to do, because they have been very to the chest with that. I have not received information on what they are planning to do. The senate please into this as well, as plays into this as well, as you know. I do not know what the senate is going to do. It is very much in speaker how wes control about handle this. What i would like to see happen is come to the table, lets sit responsiblek about spending caps that meet the physical needs of the federal government, but at the same time dddresses the National Debt an insurers that we are being ensures that we are being fiscally responsible. Host would you support a raise in the debt ceiling . Guest that depends on how it comes across. I understand the question and i am not downplaying the question. But there is a lot that goes into a debt limit increase. Is it offset . Do we have mandatory spending cuts to go along with it . We can talk about this all we want, but the reality is we are over 20 trillion in debt. And until we begin to address mandatory spending cuts to go along with the increased revenue that has come about because of the tax cuts and jobs act, then we are going to have a big problem getting republicans to vote for a debt limit increase. Free 2027488000 democrats. 2027488001 republicans. 2027488002 for independents if you want to ask questions of our guest. You talked about Democrats Holding off on passing a budget, what is the main Sticking Point . And is it defense spending, other issues, what are the main Sticking Points . Guest i do not think that they can come to a consensus on their side of the aisle. Instead of talking about passing a responsible budget, we are talking about medicare for all, adding 32 trillion over 10 years to the debt. We are talking about the green t 90 plus trillion dollars added to the debt. So we are not talking about responsible budgeting. We are talking about things that are adding to the spending. Theycant tell you what are going to do to find consensus on their side. They cannot pass a budget just with themselves, and they are in the majority. Host is there potential to freeze the budget as it is, then hold off on actually passing one . Is that something you would support . Guest i think that we would be in a situation where a continuing resolution, that is no way to run a government, no way to run a business or families. It is not the way we should run our country. It is devastating to the military, it does not provide them certainty that they need to be able to provide further personnel and for the resourcing of our brave warriors across the globe. And it is not the way to do business. But it could come to that. Host lets hear from annabelle, who is in greenwich, new york on the democrats line. You are first up. Caller i wanted to ask in regards to the federal budget, donald trump was proposing to cut the International Affairs budget by about 6 million, that provides a lot of federal aid to foreign countries, and i was wondering if you thought this was an irresponsible move. Guest i am not hearing anything. Host she asked about the International Aid budgets and at the president proposing cuts, and if you think that is a responsible move. Guest when we talk about what america spends at the federal level, you have to look at it all in total context. We should be supporting those countries that support us. And agree with us. I remember in my first term being on the Foreign Affairs committee. We addressed legislation and i supported it. If you disagreed with us more than 50 of the time in important measures at the united nations, then you were not eligible for Financial Aid from america. In other words, we should be helping friends and allies, not those that oppose us. At the got foreign aid is absolutely something we should i think that foreign aid is absolutely something we should be looking at. Host from bill in columbia, maryland. Go ahead. Caller good morning. Am i on . Host yes, go ahead. Caller ok, i am glad you are talking about this subject. Budget is thethe most important thing that congress does. And i agree with that. When i look at what has happened, i am 56, and when i look at this huge debt we have accumulated over the course of my lifetime, it is disconcerting. The numbers are so astronomical it is hard to wrap your mind around them. So what i did is i sat and i took off eight zeros. Zeros off of one trillion, it is tens of thousands. So essentially what we have right now is we are spending, if you take those zeros off, we are spending 47,000 a year, bringing borrowing a year, 10,000 a year. We have 220,000 in credit card debt. 1. 5 Million Dollars in unfunded liabilities, promises we have made to the future. This is just unbelievable. Everything going on in washington, all these discussions about Free College Tuition and we are going to have medicare for all, all of this, it blows my mind. I feel like it is the representatives in congress, they know the facts, and they are just promising a pieinthesky thing for people. They know it will never happen. And it is unbelievable what is going on in washington. I feel like it is a huge lie. Guest i think that he brings up a very valid point. I think it was Thomas Jefferson that once said, i predict future success for america until they figure out that they can vote themselves treasurers from the nations storehouse. That is very true. Are two sides of the fiscal responsibility equation, one side is Revenue Generation. I do not think that anybody can argue with the fact that revenues are going up. The tax cuts and jobs act accomplished what it was designed to do, we are seeing Economic Growth like we have not seen in decades. We are at a half a century now low in unemployment. We are seeing the lowest unemployment on record among asian americans, hispanic americans, africanamericans. We are seeing Revenue Generation and the broadening of the economy, but we are not seeing on the other side of the equation is a concerted effort by congress, in a bipartisan fashion, to address the mandatory spending curve. I have said it many times, and maybe it is worthwhile having another discussion about that this morning if you look at what america spends in the form of a pie, what we argue about and debate every year when we talk about, are we going to shut down the federal government, are we not going to shut down we are talking about basically one third of what america spends in the federal in the annual cycle. Other two thirds is mandatory spending that you cannot Touch Without changing the law. Lies,s where the problem getting people on both sides of the aisle to come together, roll up their sleeves, and address those really tough questions. He is right, the debt continues to rise. And it is going to continue to rise, and we are going to continue to borrow money to pay thatills, until we address mandatory spending. Theou zero doubt out weathered we argue about in terms of keeping the government open, if you zero that out the spending curve is still going in the wrong direction. We have over obligated. Under the obama administration, under that administration the National Debt doubled, practically doubled in the eight years he was president. It continues to rise today under president trump, because we cannot get democrats to come to the table with us and help us address mandatory spending. Host the head of the National Economic council told nbc, when it comes to the 22 trillion, it is manageable. Do you agree . Guest i think it is manageable, but it takes leadership to sit down and make the tough decisions. When you and i work our Family Budgets and we sit down with our wives and children and talk about how we will make it to the end of the month, you have to make responsible financial decisions. Thingses you do not buy you had planned to purchase, if the revenue is not there. And that is where we are having a problem. Host another bill from ohio, the republican line, go ahead. Caller thank you, congressman, for your support of veterans. And i think you are doing a great job here in ohio. I had a question related to the budget. Clinic, any possibility of expanding services at the clinic to help guys like me that drive many miles to go to huntington or over to chillicothe, for example for the radiological services, because they are not available otherwise. Is there money available in the budget in the future where we could possibly expand the services at gallup list . Guest i appreciate the question. I am an air force veteran myself. Veterana very Large Population in southeastern ohio. I have been to the clinic many times there. I can tell you the ability to provider veterans the support and to provide our veterans the support and services they need, it is not a money problem, it is a bureaucracy problem. The president has done a lot to begin to address that by allowing veterans the choice to get their health care through a local provider. The situation you are talking about is a little different, because you are talking about having a v. A. Clinic in your community. And if your ailment or Health Care Needs can be addressed by that, that is where you have to go. But if you have to see a specialist, you have to go to cleveland, huntington or chillicothe or some other place. It is not an issue of money, it is an issue of updating the system and making sure that we have the Resources Available with the money already being spent. The v. A. Is the Largest Federal Agency in washington, many folks may not realize that. With the largest budget. And it so it is not the lack of money, it is how the money is being spent. But here is what i will commit, contact my office locally in ohio and lets get into the specifics. I had not even heard that there was an effort to expand the services at that clinic. I woulduld be very, very much like to look into that. I have an office in marietta, you can reach out to them. Lets get you in, we will talk about that. Host we have phoenix on the line for democrats. Caller good morning. Cspan has a somebody here who is giving us the line. You will notice, he is talking about an artificial cap, then they wring their hands and say that they must raise this artificial cap or they cannot pay the bills, they will default and we will go bankrupt and we will have to cut Social Security, which is basically what this man is saying. Please pull up an article called taxes for revenue are obsolete. It is published in the huntington post. Quotes, 2010, and it he the former federal chairman, rummel, of the Federal Reserve of new york, who explains how taxes for revenue are obsolete. Host aside from that, what do you want to address with our guest . Caller well, i could he is going to give me the same old story, which is financially illiterate. He compares the federal government and money creation by a sovereign government, and he is in congress and of the constitution gives him the right to create the money, he delegated that right to the Federal Reserve, which is fine. No problem. But right now, money is being created, but it is being created by the private commercial banks. Ok. Guest i actually did not hear all of those comments. And the question. But i did hear the one part i did not create the Federal Reserve, i did not delegate anything to the Federal Reserve. It was in place long before i came to congress and i have been a proponent of altering the Federal Reserve to find out actually what they are up to. Because i think that there are questions about how we manage our finances in america, and i think that we must address those. That being said, i am never going to apologize for allowing the American People to keep more of what they earn. To make at federal government effective, efficient, transparent and accountable to the American People. To me, that means that we take less from the American People, because it is the private sector economy that our country has the since our founding in 1700s, that has built the greatest economy and most prosperous standard of living on the planet. ,ur families have opportunities because of our marketdriven private sector economy, where businesses flourish. And americans can innovate and compete with one another. Aost from baltimore, wha lter. Caller i totally disagree. Mr. Johnson, it is the Democratic Party i continue to hear your party disparage in any idea, any progressive ideas. I agree that we do not need a Free College Education at this point. I agree that we do not need that guarantee giveaway of welfare to the rich. Praised this businessman, also known as the president , with creating some wealth for the billionaires, not for the people. You have taken the money from the tax break and you made a permanent Welfare Program for the billionaires and multimillionaires, but you just said out of your mouth that you would not take money from the middle income. If i am wrong, you will have a moment. But that trillion dollars added to the deficit by the tax cut, what the lady just said to you is now threatening medicare, medicaid, Social Security your party has advocated cutting food stamps from the board. Host ok. From the poor. Host ok. Guest it probably does not come as no surprise that i see the world differently than you described. We have seen as a result of the tax cuts and jobs act, we have seen the economy surge. Them, theeing one of Congressional Budget Office said if we got Economic Growth above 2. 5 , that we would not see the deficits. That they would be overcome by Economic Growth, we have seen that happen. In the month of june, we saw 224,000 jobs created. At that is an average of 192,000 jobs per month over the last 12 months. We see, even though unemployment picked up around 3. 7 , we are seeing the lowest we have had in decades. The Social Security trust fund and Medicare Trust fund, they are going bankrupt. They are going broke, not because of the tax cuts and jobs act, they are going broke because we need to reform those programs for a new era in america. We have 10,000 americans retiring every single day, going on their retirement rolls, drawing Social Security and medicare. And we do not have enough money going into those programs to sustain them. Past havesses of the dipped into that Social Security trust fund for one reason or another and i think that is wrong. I think it is an obligation that the federal government has made to the American People that paid into those programs, and we mosys disdain and we must sustain those programs and make sure that seniors get their security benefits without any changes. But to sustain those programs andnd 2026, from medicare, 2036 for Social Security, we need to reform those programs. That is some of the mandatory spending reforms that are necessary if we want to make sure that those safety net programs are available for future generations. Host kevin brady, who authored the tax cut, said at the Peterson Forum he was not sure if they were going to be able to pay for themselves, and it would not be until later that they are fully realized. Why are you so optimistic that the tax cuts will have their desired effect and be paid for . Guest because i talk with Business Owners, i see what is happening on the street. You know, Small Businesses create about 60 of the jobs in america. I am talking to the americans who have seen wages go up. We have seen a 3. 1 increase in wage growth over the last 12 months. Insignificant, especially to parts of the country like i represent, rural america, where People Struggle to make ends meet from payday to payday. Whoeak with Business Owners are growing and expanding their businesses. I talked with Investment Companies that are investing in the energyrich, Energy Development in my region of the country. So i have a lot of reasons to be optimistic, because i know american history. And i know where we started. And i know that at the beginning of the civil war, we had practically no money in the budget. We overcame that. At the beginning of world war i, we struggled. At the end of world war ii, we had some of our highest debt and we recovered. We can do this. We can recover from this. And we can make responsible fiscal decisions, if we sit down and we get politics out of the way and we put the American People first. Host cheryl on our republican line. Caller good morning. Yes, i had a question is it true that we spend 250 billion a year on issues dealing with the illegal alien publishing . If that is true, does it add to the National Debt . I was also wondering about, it looks like cspan is about to cover the soccer parade on cnn, they could not cover the president s parade for the American People and american soldiers . Anyway, i will listen for your answers. Host if you are talking about the salute to america, we did cover that. We are not covering the soccer parade. Guest i appreciate the question. Millions,millions and actually billions being spent to secure the southern border. The reason for that is because of the influx of illegals trying to come here illegally. We are not a nation with closed doors. But we need a meritbased immigration system that moves america forward. We needns doctors, technicians, seasonal workers, we need agricultural workers, we need all of that, but it needs to be meritbased and it should be our choice. Because this is our country. And i do not know the exact figure, but i can tell you that it is a big number. I do not know if 250 million is the exact number, but i can tell you that we are spending a lot of money managing illegal aliens that have come across our southern border. That is something that we need to address, that is why i have been so supportive of what the president is trying to do. Host dorothy on the democrats lines. Caller you said Social Security is going bankrupt, but you said more people are working, over 100,000 jobs created and a 10,000 people were retiring, that is 101. That means Social Security should be going fine. Also, the deficit, look at the deficit when obama left, look at it now. I hope that you check that when he says it. Look at where obama left it, look at unemployment. And look company jobs are being created every month under obama and what is being created now. One more thing, you took Tax Exemptions from us, the ones that needed a tax break. You did not take any loopholes from the rich. You gave them 83 of the taxes, gave us 17 . The billionaires did not need any money. They had it all already. Guest once again, it does not come as any surprise that we see things differently. We doubled the standard deduction, we doubled the childcare deduction. Deductions toe iose middleclass america, come from the middle class and i know how important that is. But i can tell you that this moneyhat we gave all that to the wealthy you can see the rest of this program on our website, cspan. Org. Right now we take you back live to the u. S. House. The main item on todays agenda is the 733 billion defense programs and policy bill. Under clause 6 of rule 20. The house will resume proceedings on postponed questions at a later time. For what purpose does the gentleman from california seek recognition . Mr. Speaker, i move to suspend the rules and pass h. R. 1044 as amended. The speaker pro tempore the clerk will report the title of the bill. The clerk h. R. 1044, a bill to amend the immigration

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