During a Senate Finance Committee hearing last week, Sen. Michael Bennet (D-CO) asked President Trump's nominee to lead the IRS, former Rep. Billy Long (R-MO) about the 30-year bond reaching a five percent interest rate.
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00:00Thank you, Senator Bennett.
00:02Thank you, Mr. Chairman.
00:03Thank you, Congressman Long, for being here.
00:08Are you, you're going to be the most important tax person in this administration,
00:14and I was curious about whether you were aware that yesterday the 30-year bond actually touched 5% interest rate.
00:25Yes.
00:26And why do you think that was?
00:30I didn't follow it, but I heard about it, yeah.
00:33Do you think it might have had to do with the fact that Moody's stripped the United States of our AAA rating last Friday?
00:43I'm not aware. I know.
00:46Are you worried, Congressman Long, that Moody's stripped the United States of our AAA?
00:51Yeah, sure, I was aware of that, yeah.
00:52Why are you, not just aware of it, are you worried about that?
00:56When I got into Congress in 2011, our national debt was $14 trillion.
01:03I voted against every spending I could, now it's $37.
01:05I think that the spending that people do here in Congress has a lot to do with why people are very concerned about our rating.
01:12I would agree with that because I think $1.1 out of $7 that we spend is now on interest.
01:20Would you agree that that's true?
01:22Yes.
01:22And that we're spending more now as a country on interest than we are on defense.
01:28That's before the yesterday's sell America trade, as it was called, that lifted bond rate, interest rates to 5%.
01:39Would you agree?
01:40That's tied to our deficit.
01:42You just mentioned it.
01:43I.
01:44You just mentioned how much it's increased.
01:46It's at $29 trillion today.
01:49That, how much more is that than when Donald Trump enacted his tax cuts in 2017?
01:562017, I don't have any recollection.
01:59That's twice, would it surprise you to know that it's twice as much as it was when he enacted his tax cuts in 2017?
02:06That our deficit is now twice as much as it was?
02:09Probably three times it was when you joined the Congress to begin with?
02:13I don't have any independent recollection of that, so I'm sure if you've got the figures, I'll go with your judgment.
02:20Okay.
02:20Well, that is, Congressman Long, what the facts tell us.
02:24And for the reasons that we were just talking about, our interest expense is only going up and up and up.
02:31Would you agree that as it goes up that that makes our deficit even worse than it already is?
02:36As what goes up, I'm sorry.
02:37The interest rates that we have to pay because this country is being downgraded because of the fiscal irresponsibility, you said, of Congress.
02:47I would say of an administration that is adding $3 trillion to our debt when we are not in a recession because, among other things, they want to give tax cuts to the wealthiest people in America.
03:01What do you say to people in, is that fair to people in Missouri that they should have to?
03:07Like I said, I fought all the spending for the 12 years I was here and it fell on deaf ears.
03:12People don't want to cut you, don't want to cut me, cut the little guy behind the tree.
03:18And that's any, I mean, whether you're conservative or liberal, everybody says they want to do something about waste, fraud, and abuse about spending.
03:23What do we owe, you're the most important tax person in America now if you get this job and you have that view of our deficits, which I know you've said that you do.
03:35What would you say to an administration that's now adding $3 trillion of debt and where our credit rating has now lost its third, the last AAA rating that the United States of America had, that people in Missouri are counting on, people in Colorado are counting on, that we've now lost that AAA rating.
04:00And we're still going to spend like drunken sailors on your watch.
04:07What do you say to people at home about that?
04:09Well, the same thing that I said for 12 years here in Congress, we have to get it under control.
04:14I'm not in the Congress anymore, I can't vote on legislation.
04:17But do you see, is there any evidence is the most important, I mean, you understand math, you're a smart person.
04:23They haven't passed the bill yet in the House that's going to add another $3 trillion on top of the $30 trillion that's already here.
04:36Why isn't your message to them, don't do it?
04:38What, what? I can't hear.
04:40Why isn't your message to them, don't do it, don't add any more debt to the people in Missouri?
04:45I think we need to start paying down our debt.
04:49And I've said that for 12 years.
04:51And you're here, you're able to-
04:53What are you going to say to the American people when you leave this administration
04:57and the debt is even worse, is far worse today than it, than it, than it, far worse when you're leaving than it is today?
05:05We're going to have a lot of conversations with a lot of folks, with you and other people in Congress and the White House,
05:11and try and all work in the same direction.
05:13I just want, I know I'm at an end, Mr. Chairman, but let me just say,
05:17I want the market to reflect that we are having this conversation three days after
05:22we lost the AAA rating of the debt of the United States,
05:33and a day after interest rate, the 30-year bond touched 5%
05:38as a result of the fiscal irresponsibility of this administration.
05:42Thank you, Mr. Chairman.
05:44Thank you, Senator.