income tax and state tax and maximize everything and you get $1.6% of g.d.p. last 366 days, remember it's a leap year, we borrowed over 9% g.d.p. the running average of this fiscal year, that is different from the calendar year, mid-4%. the entire tax scheme -- unless for the bizarre, hey, you have a house and piece of real estate. we want to -- you haven't recognized most of that gain is probably inflation. . . . . the democrats tax scheme, the

max nation of i maximized your income tax before the number rolls over. we've maximized your estate tax before you get rid of assets or start building them. or we've maximized your capital gains before you say, we're never selling this. you get about 1.5% of g.d.p. when you do the effect effects. the economic effects. we're borrowing about 9% now. for those of us who want to cut things, if you start to look at the chart, remember, the blue is what we get to vote on. everything in the red is medicare, medicaid, social security, interest. well, now interest is much higher. other mandatory programs. we only get to vote on about 25%, 26% of the budget. and if you split up defense under that $7 trillion spending

of your u.s. government, we get to vote on about $965 billion. so less than 1/7 is nondiscretionary. that's where all the cuts -- no, i can cut it dramatically. we can get rid of all of it. you know, you get rid of all $965 billion in nondefense discretionary, no park service or f.b.i. or none of this, it's all gone. well, we're headed towards borrowing about $2.8 trillion. you don't get anywhere close to balancing the budget. that's getting rid of everything you think is government. there seems to be this unwillingness to under the scale of the borrowing. we may come back to that chart. so once again, i also need to have folks sort of understand the voracious appetite we're writing to market on debt. and there was a bizarre article

i was looking at just before coming to the floor, some economist i never heard of trying to argue -- must have been some left-wing radical. don't worry, the debt is fine. the treasury markets aren't thae numbers. i noticed it was one of those classic articles of lots of feelings explaining but no actual math in it. this may be a little hard to see. you see this spike here? that's the peak of the spending during the pandemic. here we are today. don't know if you can see it on this chart because these little bars are really small. our borrowing is higher now than the peak of the pandemic. if someone out there has a more brilliant way to try to explain, we are making ourselves fragile to interest rate exposure to the markets.

the bond market very soon will run this government. think about that. and i think it's carville which had a -- i think it was in a book, he commented that in his next life he wants to come back as the u.s. bond market. this actually happened in the 1990's where the bond market was cranky about something and he makes the point, the next day he had speaker gingrich and president clinton working it out and making the bond markets calm. and today's debt-to-g.d.p. is dramatically higher than it was back then. have you ever thought -- does anyone actually think at all what would happen if we had a failed bond market, bond market in the united states? now, i actually believe treasury is doing a fairly competent job of trying to smooth out -- they're trying to give lots of

visibility, we're going to be borrowing -- except how many of you watched what happened yesterday. they put out a refunding notice saying hey, it turns out this quarter we'll have to borrow about $41 billion more than we expected. and the next moment you have a two-year bond -- excuse me, two-year note, there's different definitions when it's shorter paper, shorter -- a two-year note that went over 5% and remained there today. this stuff gets expensive when you're borrowing trillions and trillions and trillions. and i'm trying to help our brothers and sisters understand. those of you who think that we're going to go back to normal, the last 10 years wasn't normal. there's already books out on what an interesting experiment the previous decade was with

artificially low interest rates, except now we spent the last three years with inflation sort of paying for it. here was the last -- functionally 10 years. 2.2 as a average on u.s. so republicans. sovrans -- sovrans. u.s. soverence. if you go from 1975-2001, the u.s. sovereign debt was 7.5%. even when we strip out the early 1980's, the volcker years when they were trying to crush inflation, you get a number that actually is still in the mid to high sixes. what happens if we go back to that? if that's normal, if that's nominal, how many of your businesses, how many of your lives, but how much of this u.s. debt when we have to refinance?

so this year, a little under $10 trillion will come to market. that's the stuff we have to refinance. remember, part of that refinancing is when you stay very short on what they call the curve, which is the fancy way of saying we're going to borrow some 30 days and one year and two years and five years and 10 years. but the short stuff here, you have to refinance over and over and over. when interest rates are this high on u.s. sovereign debt and you have hads 10 trillion coming to market, maybe $2 trillion or $3 trillion is new debt, the rest is refinance, what would happen if you had a spike back to normal? remember, we're already modeling right now, approaching $1.2 trillion in interest this fiscal year. becoming the second biggest debt

of the u.s. government. i had this chart and didn't have time and was going to cross it out again. i want to explain one thing because i want to be technically accurate. we're trying to figure out -- you'll actually see u.s. debt referred to as publicly held total debt. publicly held is what goes to auction. that's what you're worried about because that has the interest rate fragility and goes out and people bid on it. it might be your pension plan and might be your savings or some nice family on the other side of the world that walks into their neighborhood bank and says we want something safe to get some interest on and they pull that money and might come out and pull out a u.s. bond. over here is the big number, where my $1.2 trillion number is. so the treasury, i think a month ago, came out and said their number then was 1 -- $1.143 and

with the higher interest rate, i'm doing a back of the envelope calculation. that's when they reach over and brother out cash from social security or borrow the cash from medicare part a or borrow it from the railroad retirement fund, all these trust funds. except they have to pay interest on that and eventually have to pay it back. we're looking at some weird numbers right now. the trust funds, every month social security has to take all the tax receipts and reach in and grab a bit of the trust fund money paw the tax receipts because we have the growth, as we've gotten older, those in the earned benefit years and the number of workers, even though employment and labor force participation is excellent right now, we still have to reach in the social security trust fund. gives you a sense of how tough u.s. demographics are. i've come behind the mic

multiple times and pointed out, 15 years, the united states is probably going to have more deaths than births. we didn't make a chart on it, we should have. how many of you also saw last friday the estimate for last year's fertility rates? there's some jerk out there that was going at me because i was using a number of $1.63, turns out he was right, i was wrong, the number was $1.62. the united states now has lower births on fertility rates than much of western europe. why that's important, if you have pay-as-you-go systems where today's workers are contributing into pools that help pay for today's retirees and the number of workers is going to be

shrinking in the coming decades, besides the dislocation that's going to be happening, your local elementary school may wake up and all of a sudden start to have fewer kindergarteners coming in and fewer second graders and fourth graders and so on. we're already seeing that in some of the school districts in arizona. and we're a growth state. so the point i'm trying to nail down is our bond rates are higher than 13 other industrialized countries. should that tell you what the bond markets think about us? and this is actually a more recent phenomenon is seeing this differential with this many, which what does that tell you about what the world thinks about our controlling inflation, about our governments, our demographics, our tax policies? and when you saw last week the

i.m.f., when the i.m.f. is putting in their international report on debt and taking a swipe at the united states saying -- two things that are fascinating. they're worried about us and our scale of borrowing, and the fact the united states and china are the two big economies so pping much of the world's credit, we're crushing much of the developed world because we're consuming all the money that would help build up their economies. there's some ugly stuff in here. so for all my democratic colleagues who run around and talk about the morality of helping the developing world, turns out our voracious appetite to spend and spend and spend and not tell the truth, interest and health care are our primary drivers. what are you willing to do to help us change the price of health care? not the financing of it.

obamacare was financing bill. we don't change the cost to use technology to make people healthier and crash the price of health care. even when the i.m.f. is going at us. maybe we should think about, that's sort of embarrassing, when you actually have people -- i never met him, i know he's controversial, i don't think he's any republican. when larry fink in his shareholder newsletter is putting out information saying he's worried about u.s. borrowing and the scale of it. when you all saw jamie diamond in his comments, he's worried about it. don't listen to me. but maybe some of the people that have armies of economists that work for them, maybe they're worth actually giving some mind to instead of some idiot on social media making crap up. you've got to understand, if you have someone also do this,

david, we're just going to grow ourselves out of the debt. ok. i showed you a chart a moment ago that last friday we -- they put out the official calculation and may get updated one or two more times but the first quarter fell down to 1.6. but here's how you got to understand it. but here's functionally our borrowing. this is publicly held debt, this is the g.d.p. growth from 2023. ok. until this growth is actually beyond the borrowing, because you go out and borrow $1 trillion, we have to pay interest on $1 trillion. g.d.p., the size of our economy grows $1 trillion, we only get 17% to 18% of that in tax receipts. ok. are you with me? so when someone says we're going to borrow $1 trillion but we'll grow the economy $1 trillion,

the math doesn't work that way. and i've shown you these charts before when we had very high marginal tax rates, we get about 18% of g.d.p. when we've had low marginal tax rates we get about 18% of g.d.p. in taxes to the u.s. government. and there is a whole formula of why that works that way. you need the growth. you desperately have to have the growth. i can't make the math without really good growth but doesn't come anywhere close or close to closing the gap of our borrowing. and you have to understand how distopian this future looks. this chart is getting out of debt and deficits of reaching 14% of g.d.p. in recent years. we are racing pretty hard to get

there. you see this gap? this is the history of tax receipts and high tax -- marginal tax rate and they have the model going up to 17.9. near the end of the next 30 years, but we also have our spending at 31.9. what's the chance we get anywhere near the end of this without this economy collapsing and the people we need to borrowing from. what happens when we have to make the decision? we are going to inflate the debt and wipe out inflation and low your colas and use that as the hidden tax, because understand one of the biggest taxes -- the biggest tax in modern history have been the last three years. if you live in the phoenix area

and i'm going to say this, my district, the phoenix-scottsdale area, if you don't make 23.6% more than i believe the day president biden took office, you are poorer today. you think why people are cranky. let's walk through this. i was trying to >> and this is what i just trying to show. you go back, january 17, so and remember, we didn't do tax reform until december, 2017. january 21, you know, right

about before the pandemic, if you were a production and nonsupervisory employee, your income went up 9.8%. yay. but today, since january, 2021 when biden took office, you are 2.7% poorer. you want to understand why people feel stress, so much of our society is poorer today because of that hidden tax called inflation. and one more time, remember when we tell you we are going to cut our way to prosperity? that is just stupid. that's not how the math works. you see this chart, we vote on that blue portion and half of that is defense and how much do

you want cut? this is what you are playing with and that's why we need to create a revolution of technology to containing the cost of the services we provide. now, let's talk a little bit about hope, something i don't do enough of. so let's do -- there are some really, really helpful things around in technology and i have stabbings of these things because i sit in an airplane 10 hours a week when i go from back home to arizona. about three weeks ago, the first new drug created by artificial intelligence and papers coming out of cervical cancer screening that is done with a.i. that has remarkable screening. a.i. for cancer detection and it

is doing remarkable high quality detection. another way to a a.i. in the background to identify whether there is going to be heart failure. remarkable. amazing things happening. we know now how to cure sick will cell anemia. and if you are a geek watching this. look up investor vaccine. but there is other crazy things. here's one where it's a robot that goes out and fixes potholes and cuts the cost of road maintenance and one that is fascinating and came up with the crazy idea of how to get hydrogen to businesses. we have been talking about how we want to have hydrogen and

hydrogen is efficiently made. and one center is their model. just build a piece of equipment and bring the hydrogen. there's brilliant disruptions coming that will grow this economy. that will actually help us make government smaller. so we have a piece of legislation and i don't know if i'll get a hearing of it around here but we should, the pentagon -- g.a.o. announced two months ago, eighth year in a row, the pentagon is on audible. ok. they can't audit it and have no idea. why do we tolerate that? why isn't this body losings its

mind. how do you, maybe they need more or less. we don't know. but you walk around campus here and there are all sorts of peoples in uniforms saying we need more of this. how do we know? we can't audit you. couple of the biggest and couple of small ones, audit companies and c.p.a. companies vice president come up with audit, a.i., artificial intelligence that cruels through the books and inventory and asset list. you can use a.i. to audit the pentagon and look for fraud in medicare and medicaid and you can use a.i. there has been an experiment and i haven't got a final report but when you call the i.r.s., there is a very good chance the individual you were talking to

was a chat computer. and my understanding is that satisfaction was higher with talking to the a.i. because it stayed with you on the phone longer and helped you fill out the form. those are ways to use technology to make government smaller. i have done a whole presentations in the morality of this government using its resources to cure diseases because turns out it's really good economics. it's moral. knockoff effects and second degree, third agree, fourth agree, family formation. less people dying. we are about to have, fifth year in a year where primal aged males and this body will knife

each other when we are trying to add technology to telehealth because it will force someone out there to change the business model and maybe also find a better way to do it because they have to compete against technology. i will argue, disruption and adopting the technology is the only path that i can come up to crash this debt or stabilize it. we need to stabilize so the debt doesn't grow faster than the economy. but to do that you are going to disrupt and that's why america is supposed to work. there is a reason you didn't go to blockbuster video last weekend. the technology changed. you don't stand in line for your silver disk and now you have how many streaming services. if they hired enough lobbyists,

this place would have slowed down the internet. and that is mean but i'm getting people to think, with we have to get ourselves to push, we have to be willing to disrupt because i will argue we are americans, we are supposed to do things better every day and the cures, the changing way government works. making our economy constantly evolve, become better, faster, cheaper, more affordable, more part of the american -- it basically comes down to a single line, prosperity is moral. and if you looked at the inflation data, the new g.d.p.

data that came out on friday, we are on the cusp of going back to something horrible from almost 40 years ago called stagflation. this is immoral. we can make this a prosperous future. we only have three to five years to embrace the disruption and if we don't do it, we have engaged in a really immoral act here. with that, mr. speaker pro tempore, i yield back. the speaker pro tempore: the gentleman yields back the balance of his time does the gentleman have a motion? mr. schweikert: i move the house stand adjourned. the speaker pro tempore: the question is on the motion to adjourn. those in favor, say aye. those opposed, no. the ayes have it. the motion is adopted. accordingly the house stands adjourned until 10:00

reversing the biden administration's environmental policies including the use of lead ammunition and fishing tackles on federal groundsnd waters. when members return tomorrow, they' wk on legislation to combat anti-semitism on colle campuses by requiring the education department to use t international holocaust remembnc allianceefinition of anti-semitism as the basis for anti-discrimination la. also tomorrow, representatives marjieaylor greene and thomas massie are planning a press conference to mo mike johnson as speaker as house majority leader hakeem jeffries said democrats will help bck any motion to vacate the eaker's chair. watch live coverage of the house here on

>> while testifyingn president biden's 2025 budget request. you can watch the senate appropriatio subcommittee hearing in its entirety tonight at 9:00 eastern on c-span. it's ao available on c-span now, our free mobile app or online at c-span.org. >> on wed, federal reserve chair jerome powellill talk economy as he gives anpdate on the central bank's next move on interest rates. watch the full news conference ve at 2:30 p.m. eastern on c-span now, our free mobile video app, or online at c-span.org. >> the house will be in order. >> this year c-span celebrates 45 years of covering congress like no other. since 1979, we've been your primary source for capitol hill, providing balanced, unfiltered coverage of government, taking you to where the policies

debated and decided all with the support of america's cable companies. c-span, 45 years and counting. powered by cable. >> up next, remarks by house speaker mike johnson on the democrats' plan to protect him if congresswoman marjorie taylor greene tries to oust him. this news conference with house republican leaders is about half an hour. ms. stefanik: good morning. the elite colleges and universities continue to fail to condemn anti-semitism and protect jewish students on campus. just look at the abject failure of columbia's president to enforce their own code of

conduct that they gave lip service to to the latest education and workforce hearing. the anti-semitic mob took over an academic building. the leadership has lost complete control. it is a disgrace and it is untenable and we as house republicans will hold them to account. i will continue to lead on this issue and house republicans will expand our efforts on oversight with additional committee chairs. we have an announcement later today. also in new york, we are now in week three of bragg's witch-hunt. the first criminal trial of a former president of the united states. it is crystal clear from the opening arguments and evidence that this extraordinarily weak case is blatant law fair and election interference at the height of the presidential campaign. while the violent crime heightens in new york, they brought bogus charges against president trump for the nonfelony booking of a nuisance claim as a legal expense. under this