“Republicans want to work with the President and Democrats in Congress on a responsible budget that helps our economy recover without piling more debt on future generations. But this budget makes clear that the era of big government is back, and Democrats want you to pay for it. Middle-class families and small businesses are making sacrifices when it comes to their own budget, and it’s time for Washington to do the same. Instead, this budget taxes, spends, and borrows its way toward a bigger, more costly federal government at the expense of small businesses, family farms, middle-class families, retirees, every American who owns a 401(k), and anyone who flips on a light switch.”Ohio's senior senator, George Voinovich:
“President Obama has delivered a budget outline that attempts to fool the American people with smoke and mirrors. He unrealistically promises everything to everyone and masks the sacrifices Americans will be forced to make if it passes. To act like it is some sort great accomplishment to reduce the deficit in four years to a level that is still higher than every deficit from the end of World War II up until Barack Obama’s inauguration is absurd. And, the $533 billion figure he touts for Fiscal Year 2013 ignores the continued borrowing from Social Security and other trust funds to the tune of roughly $200 billion a year. It doubles the debt in five years and triples the debt in 10 years, continuing huge deficits beyond this administration. Failing to tackle entitlement and tax reform and relying simply on an obvious phase-out of the astronomical spending in his stimulus bill, a reduction of troops in Iraq and Afghanistan and revenue from an irresponsible cap-and-trade program is a womb-to-tomb tax increase for every child born in this country.As Boehner said, the era of Big Government is back and Democrats want YOU to pay for all of it.
“And, where are the $2 trillion in cuts and terminations we were promised? Although they are absent, he does promise to make middle class tax relief permanent while spending at least $634 billion on establishing a path to universal health care, but he does not know how he will fully pay for it.
“President Obama’s budget includes a cap-and-trade auction program to generate revenue for his botched spending priorities and permanent tax cuts. This is simply a veiled consumer tax increase the likes of which have already received a devastating critique from the EPA, EIA and many well respected economists. The impacts of this program will be disproportionately felt by states like Ohio who depend on coal for much of their energy needs. The president’s plan maximizes the economic pain of emissions reductions by requiring energy producers and users meet their compliance needs at auctions designed to maximize the costs that will ultimately be passed on in the form of higher gasoline, power and heating bills – stressing families and killing jobs. And, because energy costs are a form of regressive tax, the program will hurt our most vulnerable citizens at a time they can’t take any more pain. Indeed, the budget assumes this new tax will generate $645 billion over an eight year period – something businesses, workers and families cannot afford in this time of economic crisis.
“While I believe we have a responsibility to reduce emissions, we should not do so in a manner that further erodes our economic stability and our energy and national security interests. Last year, I worked very hard to kill a similar proposal when it came to the Senate floor. I will do so again unless significant revisions to this proposal are made.
Here are ten facts to remember about this budget:
1. The Administration’s projected budget deficit of $1.75 trillion is higher than the last five years of deficits combined, and under this plan, we will see three consecutive trillion dollar deficits between now and FY 2012.Regular readers will know that one of the areas that we take particular notice of is energy and this budget is just plain bad for producers and consumers alike. Institute for Energy Research President Thomas J. Pyle:
2. While it was purported to cut the budget deficit in half – from $1.75 trillion in 2009 to $533 billion by 2013 – this budget projects higher deficits in 2014 ($570 billion), 2015 ($583 billion), and 2016 ($637 billion). In 2019, the final year in the budget, the deficit is projected to be $712 billion.
3. Including the recently-enacted trillion-dollar “stimulus” spending bill, discretionary spending will soar by 24 percent this year under this budget.
4. The budget projects that the national debt will increase from $8.4 trillion in 2009 to $15.4 trillion in 2019.
5. The Administration’s budget contains $1.4 trillion in tax increases – tax hikes that will impact everyone, from small businesses, charities, and seniors to everyone who owns a 401(k) and anyone who flips on a light switch.
6. After promising that he will reduce taxes on 95 percent of Americans, the Administration’s budget establishes a $646 billion energy tax hike that will impact anyone who uses electricity, drives a car, or relies on energy in any way.
7. This budget forecasts more than $1.5 trillion in new health care spending, including a 10-year, $634 billion a health care “reserve fund.” The budget also calls for seven percent annual growth in Medicare and more than six percent annual growth in Medicaid over the next 10 years.
8. The budget includes a $750 billion placeholder for a second round of spending under the Troubled Assets Relief Program (TARP), even though the first round of TARP spending is not yet finished, nor is there a clear explanation of how funds under the initial round was spent.
9. The Administration’s budget claims that reducing the number of troops in Iraq over the next 10 years will cut the deficit by $1.6 trillion; however, that is only because the budget allocates the same amount of funds for the Iraq war each year over the next decade, even though most combat troops may be withdrawn during the next 19 months. The savings are, at best, deceptive.
10. The budget provides a scant 2.9 percent pay raise for military personnel as required by law, less than a week after Democrats in Congress provided the necessary funding to implement District of Columbia locality pay for overseas Foreign Service officers, which would constitute an 18 percent pay increase.
“Though history tells us that no nation has ever taxed itself to prosperity, President Obama plans to fix our economy by establishing the single largest tax increase in American history—a tax on affordable energy. His plan is not economic development; it’s a surefire way to send America’s businesses either to bankruptcy or overseas.Here is Boehner on the "Cap and Trade" measures:
“It’s alarming enough that the administration’s plan to balance its books relies on funds it hopes to someday receive from a policy it hopes to someday enact. But what’s truly appalling is that it’s attempting to sneak this huge stealth tax into the budget at a time when so many Americans are facing unprecedented economic constraints.”
“‘Cap-and-trade’ is code for increasing taxes, killing American jobs, and raising energy costs for consumers. Middle-class families are struggling during this recession, and the last thing they need is even higher costs of living and weaker job security, which is exactly what ‘cap-and-trade’ would deliver.”If there were any doubts left about whether or not Colin Powell was either a conservative or a Republican, this ought to clear it right up once and for all:
“The President’s request for a robust international affairs budget is a smart and necessary investment in strengthening America’s civilian capacities for global development assistance and diplomacy, which augment our defense and are vital to our national security and prosperity.”Never mind, Mr. Secretary, that two whole generations of Americans are going to be in debt to pay for all of this stuff...let alone the security concerns caused by mounting all of this reckless spending.
