Category Archives: Budget

If I were Speaker of the House…

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I would issue an ultimatum to President Obama. First, Mr. President, we need to stop spending on wasteful programs, and we can do this by eliminating some unnecessary departments by giving control back to the states. We don’t need the Department of Education, as the states can do more by regulating their own education system and increasing teaching standards, etc. Another department to eliminate would be the Environmental Protection Agency. Once again, the states can handle the regulating the environmental standards. (Oh boy, I am waiting for BSC responses from this idea or those calling me out for such a ludicrous idea.)

If you eliminated the Department of Education and the Environmental Protection Agency, you would save a total of $78.5 billion (Source: U.S. Dept. of Education and EPA Budget). This would bring more money back to help the deficit.

Perhaps, it is time for the President to consider the solution at hand here. Unfortunately, I know this is not going to fly, since President Obama and the Democrats in Congress believe in expanding the size of government without thinking about the costs that come with the decision. At this point, no deals are being made, so I think we should head towards default. I mean we are headed that way regardless of what Congress or President Obama says in a flashy press conference or not.

Your So-Called Economic Recovery at work

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Where’s the hope and change that was promised to Americans in 2008, when then candidate Barack Obama was campaigning for the Presidency? Now, the hope has dissolved, along with your change. Over the course of Obama’s term as President, we have seen unemployment numbers at an all time high, and the government continues to spend above and beyond its limits.

Despite unemployment and government spending, there are two additional factors that will prove the economy is in a downslide. Take for example, yesterday, an independent ratings agency, Weiss Ratings, indicated that the U.S. rating should be a ‘C’. According to Martin Weiss, President of Weiss Ratings, a ‘C’ Rating is comparable to a triple-B S&P rating. These ratings are justified by the massive debt burden and economic volatility.

The other factor that does not bode well for economic recovery is the decline of the dollar. According to a Reuters report, the dollar fell to a three-year low due to the unemployment numbers.

The question remains: When will the federal government wake up and actually address the debt burden and unemployment? This is not recovery by any stretch of the imagination.

DC Mayor, Council Members Arrested

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One could say that DC Mayor Vincent Gray and some members of the City Council were not having a great day, as they were arrested yesterday for having a sitting protest on Constitution Avenue outside the Dirksen Senate Office Building.

In case, you were hiding under a rock for the last week, the federal government was not shut down, due to a compromise by both the House and Senate at the last minute that stripped funding from abortion clinics in DC and returned the school voucher program to DC. Of course, this enraged many including Gray and Del. Eleanor Holmes-Norton, who were complaining that the city was being denied services. Check out Holmes-Norton’s response. She was outraged that women were being denied abortion services and got the “raw end of the deal.”

You know, innocent lives (those yet to be born) were given the better end of the deal, as funding for DC abortion clinics was stripped from this compromise. Students in DC will also get the better end of the deal, as their parents will be allowed to decide which school is best for their child, thus enabling them to learn.

DC leaders have long tried to protest that they should be allowed statehood. Yesterday’s arrests, combined with the corrupt leadership of the city, is another reason why they should be denied such a right.

President Obama Releases Budget Amidst $14 Trillion Deficit

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President Obama released his budget plan for fiscal year 2012 today, but it has not come without scrutiny, as it is a $3.7 trillion budget filled with tax increases and more borrowing.

According to The Wall Street Journal, Obama’s budget includes cutting defense spending by $78 billion over the next five years; cuts to programs, such as the Low Income Home Energy Assistance, while entitlement programs such as Medicare, Medicaid, and Social Security would not receive any reductions. This budget would include a tax credit for purchasing electric vehicles and loans for nuclear power plant production.

With the nation’s debt amassing $14 trillion, Obama’s proposed budget is being welcomed by criticism. The U.S. House Budget Committee and the Senate Budget Committee found that the President’s budget has $8.7 trillion in new spending, $1.6 trillion in new taxes, and will accumulate $13 trillion in debt.

House Majority Leader Eric Cantor said, in a statement:

Today, the President missed a unique opportunity to provide real leadership by offering a budget that fails to address the grave fiscal situation facing our country. At a time when unemployment is too high and economic growth is elusive in part because of the uncertainty created by our skyrocketing debt, we need serious reforms that will help restore confidence so that people can get back to work. We need a government that finally does what every other American has to do in their households and their businesses, and that’s to live within our means. Instead, President Obama’s budget doubles down on the bad habits of the past four years by calling for more taxes, spending and borrowing of money that we simply do not have.

“President Obama has used tough rhetoric about the need to get our fiscal house in order, even assembling a bipartisan commission to address entitlement spending which accounts for more than half of our federal budget including Social Security, Medicare and Medicaid. Unfortunately, the President again failed to put action behind his words by neglecting to even acknowledge these tough issues that everyone knows drive up our debt and must be reformed if they are to meet their obligations for younger Americans.

In fact, the deficit for this year is larger than all of Obama’s budget reductions over 10 years. Perhaps, Obama’s budget should focus on reducing government spending by cutting programs and entitlements to help address the nation’s debt.

School Choice Tax Credits Causing Contention in Virginia

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Could legislation involving school choice tax credits become a hot issue during the General Assembly session? Apparently so. Yesterday, John Taylor, President of Tertium Quids sent out an email regarding his disappointment on Del. Tag Greason’s (R-Loudoun) decision not to sponsor their school choice tax credit legislation. The Tertium Quids legislation was modeled after a study authored by Dr. Adam Schaeffer of the Cato Institute and would provide 100 percent income tax credit for individuals and corporations that spend their own money to help educate a child.

Taylor said in the email:

Now for the bad news. In addition to property rights, Tertium Quids has fought to bring competition and choice to Virginia’s school system. Cato’s Dr. Adam Schaeffer, the author of our policy study on the subject, has drafted a bill that would provide a 100 percent income tax credit for individuals and corporations that spend their own money to help educate a child. His plan is modeled after laws that have been extremely successful and now enjoy broad bipartisan support in both Florida and Pennsylvania.

Delegate Thomas “Tag” Greason (R-32) of Loudoun County contacted us last year about that policy study and our bill. After several frank discussions Del. Greason committed to being our patron in 2011. Unfortunately, with less than three weeks to go before the start of the session, Del. Greason has gone back on his word, allowing some of the more timid members of his party to convince him that this year is not “ideal” for a strong school choice bill. Instead, Del. Greason wants to try yet another “camel’s nose under the tent” approach, the same approach that has utterly failed every year for the past decade.

That’s not political leadership. In fact, Del. Greason and his Republican cohorts seem to have missed the message the grassroots has been sending for the last 18 months. We don’t want any more excuses; we want courageous, principled leaders who are unafraid to get results.

Greason, in an interview, regarding his decision not to support the Tertium Quids legislation

I am actually carrying a Bill (Chief Co-Patron with Del. Jimmie Massie) that pushes VA further on School Choice than we have ever been.

I am a huge proponent of School Choice, and will continue to work hard to make it a reality in Virginia. My goal is to ensure that every child has the ability to benefit from a broad based Universal Tax Credit program, and that every citizen and corporation has the ability to donate their state income tax liability to help pay for the expenses associated with educating a child outside of the Public School System. I will continue to talk about it, learn about it, and convince people of the many benefits that a Tax Credit program can bring to Virginia.

When I began studying this issue….(remember, I am NOT a career politician or a life time legislator, so there is much to learn)….I realized that MANY people had gone before me while working on this issue. Mr. Taylor and I crossed paths somewhere along my journey and we agreed that our goals on Tax Credits were in alignment. Being new to this issue, I accepted what Mr. Taylor had to say, and I gave my WORD that I would study the issue and come back to him to let him know if I would in fact carry the Bill or not. This is the only WORD that I gave to Mr. Taylor…and I kept it.

While Mr. Taylor and I believe in the same end game, we do not necessarily agree on how to get there. And since my approach to solving this problem is not the same as Mr. Taylor’s approach, he has decided to mis-represent our “agreement” and has put into question my “word.” As a graduate of the United States Military Academy, I do not react kindly to someone who questions my integrity and honor…and I certainly do not appreciate it when someone does it dis-honestly, like Mr. Taylor has.

Notwithstanding Mr. Taylor’s attempt to tarnish my reputation, I will continue to fight for what I think is right….in the way I think we can get the best result. I do not pretend to know everything on this or any other subject, but I have done a ton of research and I believe the effort to bring real School Choice to VA will make more progress on this path than on any other.

While I agree with the premise of the legislation proposed by Tertium Quids, I think we need to look at this from a fiscally responsible perspective. If you grant 100 percent tax credit to families, there is the potential that this could cost the state more over time. This could be viewed as another example of an unnecessary government expenditure by many taxpayers, etc. A more appropriate tax credit is being proposed in the legislation co-patroned by both Greason and Massie.

School choice is needed now more than ever, since educational standards in public education continue to decline. Parents should have the opportunity to choose the best education for their children, regardless if it is public or private. There has been successful legislation introduced in both Florida and Pennsylvania regarding tax credits for school choice. Former Florida Governor Jeb Bush pointed this out in his Wall Street Journal editorial yesterday, when he said, “Choice is the catalytic converter here, accelerating the benefits of other educational reforms.” Florida’s public schools improved academically due to school choice reforms.

With the success of school choice reforms in Florida and Pennsylvania, the question remains: Will Virginia embrace tax credits for school choice?

Survey says we are headed the wrong way

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You know, I hate being a naysayer. I hate it, especially during this time of year. According to a recent Rasmussen Reports survey, 71% of voters believe our country is headed on the wrong track.

Why doesn’t this surprise me? The President and Congress continually pass legislation that places our economy in harms way. Unemployment numbers are at an all-time high and the government seems to be consumed by wasting the taxpayers dollar (rather than putting it to good use by giving it back to them). Add to this, the fact that Americans are also concerned with how the Obama Administration is dealing with the Muslim world and they recognize that U.S. relations with Israel will continue to worsen over time.

If anything, it will take a long time to get the country back in the right direction with the Obama Administration. The only way we can see a possible turnaround might be in 2012. In the meantime, the incoming Congress needs to address the unemployment crisis, focusing on lowering taxes across the board, and cutting all unnecessary expenditures.

The America Obama Believes In…

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Yesterday, I was on a flight back to Washington from Texas (a place I would much rather escape to at this point), when I caught President Obama’s speech in Cleveland, Ohio about the economy. My first thoughts were: Was Obama going to continue spewing false promises about how he plans to fix the economy? Will Obama find something or someone to blame for the current economic climate?

Throughout the speech, it appeared as if Obama could not stop blaming House Minority Leader John Boehner (R-Ohio) for the current situation and citing about how his proposals will continue to add to the declining economy. The speech was filled with more blame than talking about solutions he could propose. False promises: Check, Obama blaming someone while not taking accountability: Check.

The speech (which you can find here) was filled with some hypocritical lines. For example, President Obama promised the following:

But I am absolutely committed to fiscal responsibility, which is why I’ve already proposed freezing all discretionary spending unrelated to national security for the next three years. (Applause.)

And once the bipartisan fiscal commission finishes its work, I’ll spend the next year making the tough choices necessary to further reduce our deficit and lower our debt — whether I get help from the other side or not. (Applause.)

Obama said he was committed to fiscal responsibility. Since he was sworn in as President in 2009, Obama has signed the Stimulus and Omnibus bills into law. Additionally, he wasted taxpayer dollars to bail out the failing automobile industry in Detroit and has spent excessively, forcing our country into a $13.5 trillion deficit. As for his claims to work across party lines, I think his blame game on the Republicans will not be very helpful.

There was another claim mentioned in Obama’s speech yesterday.

So, no, our job is not easy. But you didn’t elect me to do what was easy. (Applause.) You didn’t elect me to just read the polls and figure how to keep myself in office. You didn’t elect me to avoid big problems. You elected me to do what was right. And as long as I’m President, that’s exactly what I intend to do. (Applause.)

Ironically, the American people in 2008 should have looked at Obama’s inexperience before voting for him. After all, he has been showing signs of avoiding leadership at all costs. For someone who mentions, “You didn’t elect me to avoid big problems,” he has went on more vacations than his predecessors and avoiding our economic woes. Where has he been when unemployment numbers continued to climb or when the federal deficit continued to balloon? He has been out on golfing ventures, etc. He has also failed to set the budget, which could lead to gridlock.

It leads me to question: Could the America Obama believes in revolve around doing nothing? Could it be an America that avoids addressing the challenges faced on a daily basis?

President Obama should remember a line from a famous movie: “Attitude Reflects Leadership.” It’s true. In a time such as this, we need a leader not someone avoiding the issues facing the nation.

Is it me…

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or is the President Obama taking one too many vacations? Just to think that during the Bush Administration, the Democrats were complaining about President Bush’s working vacations, and now, they are mum about Obama’s numerous vacations. While Obama and his family are enjoying their time in Martha’s Vineyard, let’s take a look at the number of people unemployed and wishing for steady income.

According to the Christian Science Monitor, unemployment insurance claims have spiked to their highest number since late 2009. 500,000 Americans filed unemployment claims. Add to that, the national debt continues to spiral out of control. The national debt now sits at $13,310,379,000,000.00.

Meanwhile, Obama continues to enjoy his vacation. Why doesn’t he address this situation before we head into an even greater depression? Worst than the one under President Warren G. Harding. Wait a second…we are already there.

Remember this in 2012, people. The hope and change you placed into office in 2008 has failed you…and looks like it will doom you as well.

IOUs Become Main Method of Payment for California

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Mismanagement and giving into the unions have finally landed California right where they needed to be…in financial peril. The fiscal situation has been driven to the point, where the state has been issuing IOUs as a form of payment because they are unable to pay their bills.

According to NBC Los Angeles, John Chiang, California’s Controller will be issuing IOUs to cover payments to schools. With California on the verge of bankruptcy due to the Governor and the Democratic legislature being unable to come to a consensus over the budget, this might be the sole form of payment for a while.

Meanwhile, California’s economic woes continue on, along with our federal government’s decision to spend like there’s no tomorrow. Today, The Wall Street Journal released an article detailing the federal government spending, which totals $165.04 Billion. It’s only a matter of time before all of the cards collapse and the U.S. is stuck issuing IOUs as forms of payment. Unfortunately, taxpayers will be the ones holding the bill.

A Fiscally Responsible Budget

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Guest Post by Congressman Bob Goodlatte

This week House Majority Leader Steny Hoyer announced that, in fact, the House Democrats will not produce a federal budget resolution for fiscal year 2011. This marks the first time since the passage of the Budget Act of 1974 that the House of Representatives has failed to pass an initial budget, setting the spending priorities for the following fiscal year. What does this mean for American taxpayers? Since it is the budget at the beginning of the year that sets the limits for federal spending, Americans can expect to see even more out-of-control spending coming from Washington.

As Congress continues to spend at a near-record pace, the federal government has amassed $935 billion in deficit spending (amount that government spending exceeds the revenues coming in) in the first months of the current fiscal year with the annual deficit approaching last year’s record $1.4 trillion. These figures are staggering but with no budget resolution to force Congress to make the tough but necessary choices the spending spree will continue.

In stark contrast to the Democrats’ out-of-control government spending, I am pleased to support a fiscally responsible budget resolution which reflects Washington’s need to make tough decisions about spending priorities, cut wasteful programs, and respect taxpayers’ wallets. This alternative budget resolution, which was offered by members of the Republican Study Committee (RSC), balances the federal budget and achieves a surplus by 2019. The RSC budget proposes $6.4 trillion less debt than President Obama’s budget.

This alternative budget targets wasteful spending by requiring each committee to find savings equal to one percent of total mandatory spending under its jurisdiction. Additionally, the RSC budget resolution repeals the failed Troubled Asset Relief Program (TARP) which was the program designed to bailout financial institutions. By repealing the program it would save American taxpayers $36 billion. The RSC budget repeals the expensive government takeover of our health care system which recently became law and replaces it with important measures to reduce health care costs like medical liability reform and the freedom to purchase healthcare across state lines. It includes additional measures aimed at cutting unnecessary spending such as ending the taxpayer funding of presidential campaigns, reforming food stamp spending and selling a small percentage of federal assets.

As elected officials and stewards of the taxpayer’s money, we have a responsibility to put together a sustainable budget and stick to it without increasing the tax burden. I have consistently supported measures to rein in the federal budget and curb spending by voting for the tightest budgets and spending bills possible. Again this year I am a strong supporter of the RSC budget resolution which will set us on the path to balancing our federal budget and restoring fiscal responsibility to Washington.

To contact me about this or any other matter, please visit my website at http://www.goodlatte.house.gov.