Blog Archives
President Obama Releases Budget Amidst $14 Trillion Deficit
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.
Federal Budget Deficit Breaks Another Record
Doug at Below the Beltway had a post up the other day about the Federal Budget Deficit breaking yet another record in February, as the deficit hit $220 Billion. It appears with the President’s forecast that it’s projected to grow to $156 TRILLION.
Perhaps, if the government would not waste the taxpayer’s money on unnecessary programs, we might not be in this situation. With Congress and President Obama determined to get their version of health care reform passed, the deficit will continue to grow in a rapid pace. Is this what we want our future generations to be saddled with? It’s time to curb the spending and focus on common sense reform.
Government, Inc. Leads to Red Ink for Our Nation’s Small Businesses
Guest Post by Congressman Bob Goodlatte
Four years ago, the U.S. Supreme Court handed down its decision in the now-notorious case of Kelo v. City of New London, which authorized the government to take private property from individuals for nearly any reason under the guise of eminent domain, even to give to other private individuals or entities. The public outcry over this decision was so great that it forced states to enact laws to significantly rein in their own eminent domain powers.
Unfortunately, House Democrats did not learn the lessons of the Kelo decision. A few weeks ago, they passed H.R. 4173, the so-called “Wall Street Reform and Consumer Protection Act.” This bill would allow a team of federal bureaucrats to decide that a private business poses a risk to the economy. Incredibly, the bill then allows the federal government to take over that private business and even gives the government the right to sell off the business’ assets. What’s worse, to pay for these takeovers, the bill sets up a permanent $150 billion slush fund.
While the alleged purpose of this bill is to prevent a concentration of money and power in a small number of large corporations, the bill would have the opposite effect. Knowing that the federal government will swoop in and take over any companies that it deems “too big to fail,” creditors and investors will be drawn to lend money to the largest corporations because of the implied guarantee that the federal government will step in to repay these loans. The flow of capital will thus go to the largest corporations rather than where the money is really needed – small businesses and entrepreneurs, which are the true innovators and job creators of the U.S. economy.
The bill also creates a separate, new bureaucratic agency and bestows upon it broad authority to impose burdensome regulations on any business that lends money, extends credit or enters into repayment plans with consumers. These regulations would hit everyone from doctors and hospitals to furniture and department stores.
It is efforts like H.R. 4173 that prompted Ronald Reagan to warn us against those who would have us believe that a small intellectual elite can manage the people better than the people can manage themselves.
For all of these reasons I have cosponsored H.J.Res. 57, a Constitutional amendment prohibiting the United States government from owning or having any interest in any private company or corporation. This bill will prevent future taxpayer-funded bailouts of private corporations and help get government out of the way so that small businesses and entrepreneurs can access capital to innovate and create the jobs that are so desperately needed today.
In this case, as in so many others, government is not the answer, government is the problem. To contact me about this or any other matter, please visit my website at www.goodlatte.house.gov.
Worst Political Decade Ever?
The decade of 2000…what can I say? In personal terms, I began the decade with graduating from high school and heading off to college. Midway through the decade (2004 to be exact), I graduated college and headed off to New York with hopes that I would complete graduate school and live the city life. Of course, as we knew fate kicked its golden heels in my plans for good reason, and I decided to first head back to Maryland, then set my sights on a policy related career that led me to Virginia. The decade was filled with successes and hard lessons for me.
Looking back politically, the crew at Reason.tv has a great video highlighting the decade as the “Worst Political Decade Ever.” I would have to concur with their analysis slightly from the national standpoint.
However, let’s look at things from the state level. Since I am a relatively new Virginian (been in Virginia for three years), I can only provide a synopsis from 2006-2009. Being from Maryland originally, the best part of the 2000s was the election of Bob Ehrlich and Michael Steele to Governor and Lieutenant Governor respectively.
2006 was an interesting year for a political newbie to discover. It began with George Allen in the lead for U.S. Senate and ended with Macaca, then Jim Webb as our Senator. 2007 was exciting, as we worked hard to elect State Senators and Delegates, in addition to county office holders. Needless to say, it was exhausting, but the hard work paid off for the GOP in the House of Delegates and certain county offices (depending on what county you lived in).
2008 was a blah year in my eyes. Of course, HB 3202 enraged me due to its unconstitutional nature. Del. Bob Marshall (R-Manassas) challenged it in the Virginia Supreme Court, where it was overturned. No more $1000 speeding ticket. From the Federal level, you read on my blog quite a few times, I was not (and still am not) a John McCain fan. After being burned out from 2007, I was not so enthusiastic as I was in years past. Barack Obama won, Gerry Connolly won, and the Democrats took Congress back…only to lead to falling polls.
That’s where 2009 came in. The honeymoon phase faded quickly and both Obama’s polls (along with Congress’ polls) dropped. Public satisfaction with the new administration was at an all-time low and is expected to continue the decline. The tea party movement grew rapidly with people being enraged at the excessive government spending and waste (thanks to Stimulus and Omnibus) and Obama’s health care plan. Rallies were held all across America, including several large ones in Washington, D.C. (including the 4-15 Washington Tea Party and the 9-12 rally). People flooded townhall meetings held by their elected officials (Congressmen and Senators) to demand accountability and responsibility at the federal government level.
2009 was also a referendum on Obama and the Democratic party with Bob McDonnell, Bill Bolling, and Ken Cuccinelli being elected to all three statewide offices in Virginia, and with Chris Christie and Kim Guadagno being elected as Governor and Lieutenant Governor in New Jersey. It was a great year for Republicans in the General Assembly races as well.
Overall, I am glad to see the end of the 2000s and am eager to welcome decade 2010-2019. Who knows what the new decade will bring both politically and personally?
Stimulus Outrage: What will the Government waste our money on next?
What will the Federal Government waste the taxpayers’ money on next? It goes without saying that the government bureaucrats in Washington will find creative ways to utilize the money coming from the Stimulus. After all, the American people thought that the funds would create more jobs and help boost our economy, but unemployment numbers continue to rise (and will continue to rise, especially if the “finalized” health care reform bill is passed). However, the American taxpayer would be livid to know what exactly the stimulus will be boosting…pet projects. Let’s just take a look at the pet projects that will be created under the stimulus. Thanks to Senator Tom Coburn (R-Okla.) for uncovering these projects.
- How does an “Almost Empty” Mall being awarded an energy grant sound? Price tag: $5 Million
- If you’re interested, Digital Television Advertising Agency will create three jobs…but you better apply fast, as they will be gone in a flash. Price tag: $5.9 Million
- If working for a Digital Television Advertising Agency does not float your boat, then how does researching in the development of supersonic corporate jets sound or studying the learning patterns of honeybees sound? Price tag: $4.7 Million for the corporate jets study and $210,000 for studying honeybees
- It looks like the Stimulus will also create a program to control household appliances from a remote location. Awesome, huh? Price tag: $787,250
- How would you like to climb aboard the wine train and get your groove on? Price tag: $54 Million
- Perhaps, while you are on the wine train, your children can watch anti-capitalist, socially-conscious puppet shows. Entertainment with a cause…yeah right Price tag: $100,000
- Do you live in Buffalo? If so, the Stimulus will create a job in your city that involves journaling your malt liquor and marijuana usage. I guess this will help soothe you after the horrible 6-14 record of the Buffalo Bills. Price tag: $389,357
- Lastly, how does a visit from Bobber the Water Safety Dog sound? I hear he is quite the hit at birthday parties. Price tag: $21,116
What other wasteful programs will the government spend the taxpayers’ money on next? I guess we will have to wait to find out.
The Federal Budget Deficit Continues to Soar
The excessive spending by the Federal government has been contributing to the budget deficit. It is growing, thanks in part, due to President Obama’s decision to bailout the automakers, the stimulus and wasteful spending from his omnibus bill, which was signed into law. Now, with Obama’s health care proposals, this will all contribute to the projected deficit growth, in addition to the entitlement spending, etc.
What can Congress do to address the Federal budget deficit projections? Pass reform packages, start eliminating wasteful spending, stop bailing out businesses who are failing, cut unnecessary programs, and becoming more transparent, so the American taxpayer can gauge how their money is being spent at the federal level.
Source: The Heritage Foundation
The Lifestyles of the Greedy and Despicable
Welcome to the Lifestyles of the Greedy and Despicable! This week’s episode features an insurance firm, who begged for and received money from the Federal government, only to use this money to give bonuses for top executives. Who was this insurance firm? Does AIG sound familiar to you? Well, it should. After all, they received $12.9 billion dollars from the government to help get them out of financial collapse.
The Washington Examiner reports that there has been considerable outrage on Capitol Hill regarding AIG’s handling of the bailout money. These bailouts were unnecessary and our legislators realize that the taxpayers money was being used unwisely.
This is exactly what I predicted would happen, and the behavior of these executives should not be condoned. In fact, AIG should pay this money back to the government immediately. Why should these executives be receiving any raises? After all, they should be focusing on working to pull their agency out of the fiscal problems they are experiencing. Upon initially receiving the bailout money, AIG sent their executives on a ritzy retreat, while the financial industry was on the brink of collapse. AIG did not deserve or need one red cent from the government, and hopefully, our elected officials will regret their decision to vote to approve these bailouts.
Face it, the economy is in a recession, and America is in massive debt. If this money would be returned to the government, then this will help with paying down some of the debt, etc. Now, of course, we know this will not happen, but there should be an in-depth investigation on each company that has received a government bailout to ensure that this money is not being wasted on corporate raises, etc.
Big Government is Back!
Of course, this shouldn’t surprise you, but Big Government is back. President Barack Obama will be releasing his budget proposals today at 11 a.m., and the budget is filled with a $634 billion dollar health care plan, more tax hikes to the wealthy (which will not take place until 2010, and more money will be sent to domestic projects, rather than national defense projects.
According to The Politico, this budget would directly tax the wealthy at rates of 33 percent. While this may not seem alarming to many, it could not come at a worst time with the current state of the economy.
Hard on the heels of Obama’s speech to Congress, administration officials began briefing lawmakers Wednesday on their proposals including the healthcare reserve fund: half of which would come from health-related expenses and half by scaling back the value of itemized deductions for wealthier taxpayers.
By itself, the $634 billion won’t be enough to finance the president’s ambitious health plans. But it represents a major commitment upfront, with the administration promised to work with lawmakers to find additional savings as legislation is developed this year.
Obama’s focus on high-end households is consistent with his larger philosophy — both in taxes and spending.
Within the $2 trillion in savings, for example, the budget is expected to limit agriculture subsidies to farms earning more than $500,000, resulting in an estimated saving near $16 billion. Large charitable deductions—used to shelter income—would face new limits, and Bush-era tax cuts for the wealthy would expire after 2010.
The new healthcare reserve fund is a separate enterprise but with much the same philosophy.
Wealthy individuals, taxed at rates of 35 percent or 33 percent, could still shelter part of their income with large itemized deductions, but these would be treated more as if the taxpayer were in the lower 28 percent tax bracket.
Thus, each $10,000 in deductions — worth about $3,500 for a 35 percent taxpayer today — would be worth closer to $2,800 or 20 percent less.
Why should the government tax and spend its way to prosperity? I think you should not tax in troubled times to fund for a nationalized health care plan, which does not work. For example, in Canada (where nationalized health care is mandated), there are many who travel to the U.S. for health care due to the massive delays in common life saving procedures. Our country is renowned for its quality health care system, and universal health coverage would drive many of doctors out of business or being entirely overworked.
However, with the expansion of big government programs and initiatives, many Republicans have embraced the core principles, which they strayed from in the past. Many of them have chided President Obama for his love of expanding the size of federal government. Minority Leader John Boehner (R-OH) recently published an editorial in The Hill that criticized the looming expansion of super-sized government. Boehner inquired how both Obama and the Democrats were planning to pay for each of these proposed programs, while he took a hard line stance on saying that a national health care is just “preposterous.”
It is time to fight back and stick to our guns on the expansion of big government. Hopefully, the GOP in Congress has awaken to their bad behavior and get back on track advocating for our core party principles of limited government and fiscal responsibility. Remember, Ronald Reagan once said, “The most terrifying words are “I’m here from the government and I’m here to help.”
Standing Strong for Welfare Reform
In the Virginia General Assembly, there has been debate about cutting back on the success of the welfare reform in the Commonwealth. H.B. 1714, which was being debated in the Senate. Since the House is not reconsidering this bill, Senator Mark Obenshain (R-Harrisonburg) is shown here standing up for principle and talks about “Welfare Lite.”
Welfare reform actually holds the recipients accountable for finding work and taking initiative to provide for themselves. Upon its passage during the Allen administration, more Virginians have taken the initiative and got back on their feet. Sure, there might be some abuses of the system, but they are lower than in other states. Welfare reform should not be lightened to allow for abuses and free give outs.
Keynesian Economics is Wrong!
Since when has Keynesian economic theory ever solved our woes, the answer is simple…never. Even though, the Stimulus Bill, which will become law later today looks glamorous. It is merely like an Extreme Makeover gone awry with countless job losses and more major industries collapsing. The best long-term solution was to allow the markets to restore and revive themselves. It would have happened with a degree of patience.
