Out-of-Control Federal Spending

The federal government must restore fiscal responsibility and stop the out of control spending that has led to record deficits that are simply unsustainable.

Our deficit this year alone will be more than $1.4 trillion.  The national debt is at a record high and growing rapidly every day.

The appropriations bills that have passed the Senate contain double digit percentage increases in spending over last year.

The Obama Administration would like Americans to believe that it has no responsibility for these increases in spending; claiming this spending was inherited from the previous administration.

While both Republicans and Democrats have been irresponsible with the federal budget it is simply disingenuous to suggest that the Bush Administration and Republicans are somehow responsible for the wasteful economic 'stimulus' legislation that passed at the beginning of the year which vastly increased the deficit and did not save jobs as promised.

Not only is the Democratic majority in Congress turning a blind eye to record spending and borrowing, it continues to advocate more.  The health care bills being debated would all vastly increase spending.  The proposed cap and trade bill would cost hundreds of billions more and would raise taxes on energy, costing us more jobs.

Additionally, I would have opposed the ridiculous ‘cash for clunkers’ program that wasted $3 billion and which has done nothing to stimulate the economy.

We must enforce tough limits on our national debt, create a realistic plan for a balanced budget, and reign in wasteful spending.

END THE BAILOUTS

I am opposed to government bailouts of private businesses and would have voted against the creation of the TARP program and the bailouts of auto companies, AIG, Bear Stearns and others.

It is time to end the TARP program.  I support the Government Ownership Exit Plan that has been introduced in the Senate to create an exit strategy to end government ownership of AIG, General Motors, Chrysler and the other private banks and businesses in which the government owns interests, while acting to recoup as much taxpayer funds as possible.

Additionally, I would support and co-sponsor S. 604 to audit the Federal Reserve to create full disclosure of where all the bailout money has gone and to create transparency in the development of our nation’s monetary policy.

THE WALL STREET JOURNAL:
“The White House disclosed the other day that the fiscal 2009 budget deficit clocked in at $1.4 trillion, amid the usual promises to do something about it. Yet even as budget director Peter Orszag was speaking, House Democrats were moving on a dozen spending bills for fiscal 2010 that total 12.1% in more domestic discretionary increases.  Yes, 12.1%.  Remember, inflation is running close to zero, or 0.8%.”

“These spending hikes do not include the so-called mandatory spending programs like Medicare and Medicaid, which exploded by 9.8% and 24.7%, respectively, in the just-ended 2009 fiscal year. All of this largesse is also on top of the stimulus funding that agencies received in 2009. The budget for the Environmental Protection Agency rose 126%, the Department of Education budget 209% and energy programs 146%.”

“More broadly, the White House and the 111th Congress have already enacted or proposed $3.4 trillion of new spending through 2019 for things like the health-care plan, cap and tax, and the children's health bill passed earlier this year. Very little of this has been financed with offsetting spending cuts elsewhere in the budget.”

Editorial, “The Spending Rolls On,” The Wall Street Journal, 10/26/09

Paul Volcker Said that The Obama Administration Would Preserve A Policy That Could Lead To Future Banking Bailouts.

“Paul A. Volcker, a top White House economic adviser, said Thursday that the Obama administration’s proposed overhaul of financial rules would preserve the policy of “too big to fail” and could lead to future banking bailouts. Mr. Volcker, a former Federal Reserve chairman, told Congress that by designating some companies as critical to the broader financial system, the administration’s plans would create an expectation that those companies enjoy government backing in tough times. That implies those financial companies “will be sheltered by access to a federal safety net,” he said. He urged lawmakers to make clear that nonbank companies would not be saved with federal money.”

“Volcker Says Obama Plan Leaves Opening For Bailouts,” The New York Times, 9/25/09

“President Obama's $787 Billion Stimulus Plan Is Having Little Effect On Job Creation Within The General-Construction Industry, The Trade Association For The Sector Said Thursday.”

“Construction spending was "disappointingly slow" five months into the recovery program, with firms working on stimulus-funded construction projects hiring at no greater rates than those without such work, according to the Associated General Contractors of America, known as AGC.”

“Stimulus Slow To Spur Jobs In Construction, Group Says,” The Washington Post, 7/31/09

 

A Valuable Report from the Heritage Foundation

Hitting the Federal ATM, Again

  • Apparently, It Does Grow on Trees: After an $800 billion stimulus bill, the President’s budget increases spending by $1 trillion over 10 years, includes an additional $250 billion placeholder for another bailout, and calls for a pay-as-you-go (PAYGO) law while astonishingly violating that rule by $3.4 trillion.
  • More Deficits and More Debt: The President’s budget leaves permanent deficits averaging $600 billion even after the economy recovers and doubles the publicly held national debt to over $15 trillion ($12.5 trillion after inflation).
  • To Pay for Historic Government Expansion: The 25% spending increase in the President’s budget represents the largest non-war government expansion since the New Deal. Domestic discretion! ary spending (including the stimulus funds) has been hiked by nearly 80% over 2008 levels.
  • When Is It Enough? After multiple bailouts, an $800 billion stimulus bill, an omnibus spending bill, major Medicare expansion, SCHIP expansion, and now a historic tax and spend budget, all in less than eight weeks, when is it enough?

Doubling Down, Again

  • Bush v. Obama: Bush expanded the federal budget by a historic $700 billion. Obama would add another $1 trillion. Bush increased federal education spending 58% faster than inflation. Obama would double it.
  • Bush v. Obama, Round 2: Bush became the first President to spend 3% of GDP on federal antipoverty programs. Obama has already increased it to 20%.
  • Bush v. Obama, Round 3: Bush reduced taxes by nearly $2 trillion. Even after Obama’s tax cuts, he still will raise them by a total of $1.4 trillion.
  • Bush v. Obama, Round 4: In 2007, before the recession, Washington spent $24,172 per house hold. Obama would increase that to $32,463 per household.
  • Bush v. Obama Scorecard: While President Obama has framed his budget as a break from “failed policies” of the Bush Administration, it is in fact a doubling down on borrowing, spending, and bailing out.


More Taxes, Again

  • Spreading the Wealth: The President’s budget raises taxes by $1 trillion over the next decade on those earning over $250,000. This means raising taxes for 3.2 million taxpayers by an average of $300,000 during that time.
  • Yes, Even the "95%" Are Taxed: Through his proposed cap-and-trade system, the President would be raising taxes on all Americans while crippling the manufacturing sector and destroying jobs. Warren Buffet called it a “regressive tax,” correctly identifying that it will be borne by all American energy consumers.


That ‘70s Show

  • Back to the Future: President Obama’s budget returns us to the economic policies starting in 1952 and culminating with Jimmy Carter’s high taxes, high spending, and Keynesian economics-which resulted in high recession rates, high inflation, high interest rates, and a stagnant stock market.
  • More Carter Than Carter? Lawmakers should reject this budget and hold the President to his pledge of fiscal responsibility.

Source:  http://blog.heritage.org/2009/03/18/buying-big-government-what-the-obama-budget-will-cost-youagain/