Blog Archives
Congress Needs a Budget
Guest Post by Congressman Bob Goodlatte
Traditionally, Congress is expected to agree on a budget for the upcoming fiscal year by April 15th. It is this budget process at the beginning of each year where the decision is made regarding total federal spending for the year. It is the budget that sets the stage for how fiscally responsible government spending will be. Since the passage of the Budget Act of 1974, the House of Representatives has never failed to pass an initial budget to set the spending priorities for the following fiscal year. However, we are now a month past the deadline and Speaker Pelosi and the Democratic Leadership are showing no signs of complying with the law and coming forward with a budget for fiscal year 2011.
Families and small businesses all across our nation understand what it means to make tough decisions each day about what they can and cannot afford. They understand the importance of creating and living by a budget. Unfortunately, instead of making the tough choices necessary to reduce spending, the Majority in Congress has decided to forgo a budget altogether. Just four years ago the same leaders who are now shirking their responsibility and choosing to move forward without a budget were very clear on how important the budget process is to the operation of the federal government. In 2006, Congressman Steny Hoyer, who is now the House Majority Leader, was quoted as saying enacting a budget was “the most basic responsibility of governing” and Congressman John Spratt, who is now the Chairman of the House Budget Committee, said “if you can’t budget, you can’t govern.”
Without the passage of a federal budget the reckless spending that has run rampant in Congress will only continue. We have already seen the passage, without my support, of the so-called “economic stimulus” legislation which was supposed to put Americans back to work. Not only did the stimulus legislation fail to create jobs but it is now estimated to be costing American taxpayers over $1 trillion including interest.
Not only should Congress produce a budget but, I am a strong supporter of several measures that promote the establishment of a balanced budget and the elimination of wasteful government programs, including a Constitutional amendment that I introduced which requires the federal government to balance its budget. Congress must steadfastly hold the line on government spending which is why I have consistently voted for the tightest budgets offered each year.
As elected officials and stewards of the taxpayer’s money, we have a responsibility to put together a sustainable budget and stick to it. The Congress must continue to work to rein in spending and put to practice a spending approach that many Americans already live by: if you don’t have it, don’t spend it.
To contact me about this or any other matter, please visit my website at www.goodlatte.house.gov.
Scrap the Code
Guest Post by Congressman Bob Goodlatte
Last week, as we marked Tax Day, individuals, families and businesses across this nation struggled to comply with our onerous tax code. Americans spent countless hours and large sums of money to ensure that they were following the letter of the law when it comes to filing their income taxes. Every year this exercise reminds taxpayers that the current code is broken beyond repair and it is obvious that tax reform is absolutely necessary.
In fact, during a recent television interview Douglas Shulman, the IRS Commissioner, admitted “that he does not file his own taxes in part because he believes the tax code is complex”. He is not alone. It has been reported that nearly 63% of filers used paid preparers. This is up from 38% in 1980. If it is this hard for those who enforce the tax code to comply with the code then imagine what it is like for the average American family or small business to comply with it.
I understand the frustrations of taxpayers and so I have introduced bipartisan legislation which will force Congress to finally address fundamental tax reform. The Tax Code Termination Act will abolish the tax code by December 2012, and call on Congress to approve a new federal tax system by July of the same year.
While almost every Member of Congress recognizes that our tax code is no longer working in a fair manner for Americans, nothing has been done to create a more equitable tax code. Congress won’t act on fundamental tax reform unless it is forced to do so. My legislation will force Congress to finally debate and address fundamental tax reform.
With enactment of my legislation, today’s oppressive tax code would survive for only three more years, at which time it would expire and be replaced with a new tax code that will be determined by Congress, the President, and the American people. This allows us, as a nation, to collectively decide what the new tax system should look like. There are many competing alternatives including the flat tax, the fair tax and others but having a date-certain to end the current tax code will force the issue and the debate to the top of the national agenda.
Whichever tax system is adopted, the key ingredients should be: a low rate for all Americans; tax relief for working people; protection of the rights of taxpayers and reduction in tax collection abuses; promotion of savings and investment; and encouragement of economic growth and job creation. But passage of my legislation, the Tax Code Termination Act, is the first step in replacing our current tax code with a system that includes these critical principles.
To contact me about this or any other matter, please visit my website at www.goodlatte.house.gov.
Health Care Aftermath
Last night, the U.S. House of Representatives passed health care reform legislation (219-212) that will dramatically impact Americans, especially those receiving public assistance in Virginia. Aside from Congress’s actions to rob the American people of their liberty to choose whether or not to be enrolled in a health insurance plan, there is no doubt that negative ramifications and aftershocks will occur in the days ahead, particularly if President Obama signs the bill into law.
Let’s take some insight into what the health care reform proposals will entail. Brian over at Too Conservative has a great post detailing what the new health care legislation will do over time, while The Wall Street Journal offers a glimpse into each of the proposals that were at one point on the table.
Meanwhile, others have weighed on the health care legislation. Rep. Bob Goodlatte (R-Va.) released the following statement:
“For nearly a year now the American people have rejected the Democrats’ health care proposals. They have sent letters and e-mails, made phone calls, attended town hall meetings and come to Washington to rally at the Capitol. Their message has been simple and consistent: We don’t want a government takeover of our health care system.
With complete and total disregard for the will of the American people, House Democrats pushed through their health care legislation, which is defined by federal regulations, mandates, a myriad of new big government programs, and a significant increase in federal spending and debt at a cost to our country too high to bear. This legislation, which I voted against, gives Washington bureaucrats ultimate control over what is best for you and your family – deciding when and what treatment you can receive.
I know Americans are frustrated by rising health care costs, and that is why we in Congress must work in a bipartisan way to cut health insurance costs and make health care better, more available, and more affordable for all Americans. Unfortunately, the only thing bipartisan about the health care bill that passed the House tonight is the strong bipartisan opposition to the bill. It raises taxes, raises health care costs, adds to our national debt, and hurts America’s seniors, families and small businesses.
Specifically, the Democrats’ health care bill includes $569 billion in new taxes and over a trillion dollars in new government spending. This includes $52 billion in new taxes on employers, including small businesses, that cannot afford to provide health coverage or that don’t offer coverage. The effect of this type of tax, similar to a payroll tax increase, would ultimately fall squarely on workers in the form of lower wages or reduced employment. Additionally, the legislation includes $17 billion in new taxes on Americans who do not comply with the individual insurance mandate which is sure to further stifle economic growth.
Additionally, the Democrats’ health care bill includes $523 billion in Medicare cuts, including $200 billion in cuts to the popular Medicare Advantage program which will hurt millions of seniors.
It’s your job to make health care decisions for your family. The government’s job is to ensure you have access to affordable alternatives and then get out of the way. That is why I strongly support the Republican alternative that would empower patients with choices, make high quality coverage more affordable, and protect and preserve the doctor-patient relationship. Unlike the Democrats’ plan, the non-partisan Congressional Budget Office has confirmed that the plan offered by House Republicans will lower premiums by up to 10 percent and reduce the deficit by $68 billion over 10 years, all without imposing tax increases on families and small businesses and while improving the quality of your health care. It allows for the purchase of health insurance across state lines, allows individuals and small businesses to join large pools to get more competitive rates, provides tort reform to cut down the high cost of defensive medicine, allows full tax deductibility of health insurance premiums, portability of health insurance and protection against pre-existing condition exclusions. This legislation, that I support, focuses on strategies that help Americans obtain the best quality health care at the least cost, and ensures that the government fosters increased access to quality care based on individual choice, not by taking away choices from people on the grounds that government knows best.”
RPV Chairman Pat Mullins released the following statement in response to the House Health Care vote:
“Let me be perfectly clear. The action taken in Congress tonight will forever alter the size and scope of our Federal government. The legislation that the Obama/Pelosi Democrats forced on the American people tonight will bury our children, grandchildren, and great-grandchildren in mountains of debt,” Mullins said. “Bureaucrats in Washington D.C. will now know better than you and your doctor what medical treatments you need. And our federal government will become more entwined with our daily lives than our founding fathers could have ever imagined.”
“Ultimately, Congressmen Gerry Connolly and Tom Perriello cast the deciding votes on this legislation. They had the opportunity not once, but twice, to stand up and listen to their constituents, but each time they choose to stand with their party bosses,” he said. “They had the power to stop this monstrosity, but they chose not to act.”
“While Congressmen Connolly and Perriello may have cast tonight’s decisive votes to allow for the federal takeover of our healthcare system, it was Senators Mark Warner and Jim Webb who cast the deciding votes in the Senate in the dead of night on Christmas Eve that made today’s legislative fiasco possible. Had either Senators Warner or Webb listened to the people of Virginia, we wouldn’t be here tonight. They too will ultimately be held responsible for the actions that took place in Congress today.”
“In one fell swoop, Congressmen Connolly and Perriello, along with Senators Warner and Webb have:
• Put Virginia taxpayers on the hook for sweetheart deals in Nebraska, Louisiana, Florida, Hawaii and others.
• Raised taxes by nearly $1 trillion on individuals and businesses, including the first ever tax on simply being alive.
• Turned the IRS into the national health insurance police.
• Levied a huge unfunded mandate onto Virginia and other states that will either require tax increases or cuts to core services like education and public safety.
• Made it highly likely that dozens of states will pull out of the federal Medicaid program.
• Set the stage for either crippling levels of deficit spending, or the collapse of Medicare as we know it.“Thousands of Virginians called their member of Congress, Senator Warner, and Senator Webb, emailed them, faxed them, attended town hall meetings, met privately with them, traveled to Washington D.C. and voiced their opposition to this legislation,” he said. “Despite all of their efforts, they could not force Congressmen Connolly and Perriello and Senators Warner and Webb to vote for the will of the people.”
“Unfortunately, Congressmen Connolly and Perriello, Senators Warner and Webb have made their choice and the people of Virginia will have to deal with the consequences,” he said. “While the people of Virginia may not have been heard tonight, I can guarantee you that they will be heard this November when Congressmen Connolly and Perriello become one-term Members of Congress.”
Lastly, Governor Bob McDonnell released a statement on the House Health Care vote:
“Expanding access to reasonably priced quality healthcare is a bipartisan goal. We all agree that we must make it easier for Americans to purchase and retain health insurance.
However, this massive and complex piece of legislation allows the federal government to exercise control over one-sixth of the United States economy. The continued intrusion of this Congress into the free enterprise system, and the placing of new mandates on states, is shocking to the American system of federalism. Most disconcerting is the provision mandating that every American must purchase health insurance or face a monetary penalty. This is an unprecedented expansion of federal power. It is hard to imagine our Founder’s agreeing that the United States Constitution permits Congress to mandate the purchase of a good or service under penalty of law. Just a few days ago I approved a bill, passed on a bipartisan basis, which prohibits mandatory insurance purchases for Virginians. Virginia’s Attorney General has rightly chosen to challenge the constitutionality of the federal mandate. I anticipate that he will be joined by a number of other states. The issues raised by Attorney General Cuccinelli require a full and prompt review by the judicial branch.
While individuals face a mandate in this legislation, so too do the states. The proposed expansion of Medicaid is an historic unfunded federal mandate on the states. This expansion will put at least 400,000 more individuals on Virginia’s Medicaid rolls. The Virginia Department of Medical Assistance Services has estimated that it will cost the Commonwealth an additional $1.1 billion by 2022. Virginia, and the other 49 states, will bear the financial burden of one of the biggest unfunded mandates in the history of our nation. This will have a significant and unavoidable impact on the bottom line of our state budget, and the general fiscal welfare of Virginia. We simply cannot afford this expansion.
The bill will cut over $500 billion from Medicare, and may reduce the quality of the care our seniors depend upon. The Medicare system is already underfunded and overburdened. This legislation only exacerbates the problems facing the system.
This legislation will raise taxes on individuals and businesses. Our small business owners, who generate nearly 98% of the new jobs in Virginia, will see their taxes go up. This will occur at the same time that federal tax cuts from the early part of last decade expire. We will face significantly higher federal taxes at a time when we need to be keeping taxes low and freeing capital for job creation and economic development. It can also be anticipated that Virginians’ insurance premiums will increase in the years ahead after passage of this legislation.
I am further disappointed that a bill so massive in size is so limited in its approach. Congressional Republicans were right to call for allowing the purchase of health insurance across state lines, and this provision should have been included in the bill.
States have long been leaders in the effort to identify and implement innovative healthcare solutions. Regardless of the future of this legislation, we must continue to play that important role in our federal system. In Virginia we will promote incentives for the purchase of long term care, and promote individual medical savings accounts. We will focus on preventative health and combating obesity. We will study our medical delivery systems with the objective of reforming them to work better for our citizens. Free clinics are an important piece of the coverage equation, and I will look for ways by which the Commonwealth can help with the expansion of these important facilities. We will be aggressive in finding every way by which we can reduce the cost of our Medicaid system, which has already grown 1600% in the past 25 years. It is unsustainable.
Every American should have the opportunity to purchase good quality healthcare coverage. But we will not improve our healthcare system by implementing a massive one-size fits all federal policy that dramatically increases the deficit, puts unprecedented mandates on states and individuals, and jeopardizes the good coverage most citizens already have. I am disappointed in the passage of this bill, and I thank the bipartisan majority of Virginia’s congressional delegation for voting against it.”
The aftermath is far from over. If this is signed into law, there will be several challenges in the judicial system in regards to the unconstitutional nature of the legislation. Virginia Attorney General Ken Cuccinelli is one who is prepared to file the case that very day. Right now, it is a wait and see period to see if the U.S. Senate will follow suit in passing this detrimental legislation that violates the liberty to choose health care (a privilege…not a guarantee) coverage.
