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.
Just Another Sad Side Effect of the Economy
The Economic Recession (I would term it as the Second Great Depression) has impacted many families, as unemployment numbers continue to climb. The major side effect from the unemployment numbers is the number of those living in poverty. According to a recent article in The Washington Post, approximately 44 million people in the U.S. lived below the poverty line in 2009. These numbers are only going to get worse, as the 2010 numbers might be higher.
Currently, the numbers are not boding well in Virginia, as the families living below poverty have jumped from 8.6 percent to 10.5 percent.
When will Congress and President Obama wake up and address the economic decline? When will they wake up and work on getting Americans back to work? At this point, they are focused on excessively wasting taxpayer dollars on unnecessary programs (supposedly to combat those living at or below poverty) and partisan bickering, rather than addressing the important issues facing Americans.
Obama said:
“Because of the Recovery Act and many other programs providing tax relief and income support to a majority of working families – and especially those most in need – millions of Americans were kept out of poverty last year.”
The Recovery Act only provided temporary employment. There was nothing permanent created from this plan.
Clearly, we are doing something wrong if we are spending taxpayer dollars on programs to prevent poverty, yet people are still living in these conditions.
Stop Spending…The Return of Rick Santelli
Rick Santelli, the guy who began the tea party movement, is back. This time, he returns with a call that the President and Congress should pay particular attention to…”Stop Spending, Stop Spending, Stop Spending.” The only way we are going to get out of the deficit is to cut wasteful spending and funding of wasteful programs at the Federal level.
Forget about Recovering Lost Jobs
Vice President Joe Biden is known for making all kinds of interesting remarks, ranging from hilarious to really dumb. However, his remarks from a campaign stop on Friday were truthful and albeit, honest. He said, “there’s no possibility to restore 8 million jobs lost in the Great Recession.” Unfortunately, he is right.
With the recent display by the federal government to spend to excess and the possibility of taxes being raised on the horizon, it is no wonder why we can not restore this massive job loss. Wasteful spending, enacting more financial regulations, and raising taxes are no way towards prosperity or solving a budget deficit.
Recently, the New York Times ran an article about whether the Obama Administration and Congress can create jobs without additional stimulus legislation. Of the experts questioned, there was more mention about putting free market principles to work, rather than relying on wasteful spending and additional bailouts. Easing regulations and reducing taxes were other suggestions. These are the examples Obama should be seeking, not enacting stricter regulations, wasteful spending measures, etc.
We need to put America back to work, and it is unfortunate that the Democrats in control of Washington would rather tax and spend, than address the unemployment issue by utilizing free market principles.
Forget about the Budget…Let's Raise Taxes
Why doesn’t this surprise me (and forgive the irony)? The Democrats in control of Congress have neglected to pass a budget. With the deficit continually rising, it seems odd that Congress does not want to work on the budget. Then again, there’s not much initiative to do so with the current leadership, as they are more concerned with raising taxes.
Rep. Steny Hoyer (D-Md.) in media interviews yesterday indicated that taxes will increase to address the deficit issue. I guess Hoyer believes increased taxes will spur the economy and solve the deficit. Hoyer is wrong. Increasing taxes will hurt working families and it has never been the solution to addressing budget deficits and the economy.
Perhaps, it is time for Congress to examine their spending habits and create a realistic budget that will boost the economy and reduce the deficit.
Congress Needs to Pass a Federal Budget to Restrain Spending
Guest Post by Congressman Bob Goodlatte
Just last week the U.S. Treasury Department issued its “Annual Report on Public Debt” which confirmed that the national debt will soar to record levels. The report estimates that the total debt for fiscal year 2010 will reach $14.75 trillion which is over 93 percent of our gross domestic product (GDP). This current rate of government spending is having a crippling effect on our economy and overall job creation.
While federal spending is spiraling out of control, the House Democratic Leaders have failed to even propose a budget for the next fiscal year. Without a budget, there is no procedural enforcement mechanism to constrain spending. So far through the first eight months of the current fiscal year, which began last October 1st, the federal government amassed $941 billion in deficit spending which puts us on the dangerous track to an annual deficit (the amount by which government spending exceeds tax revenues) approaching last year’s record $1.4 trillion.
We are simply on an unsustainable course but there seems to be no end in sight to the Congressional spending spree. In fact, when White House Budget Director Peter Orszag was pressed on whether he would send a package of budget cuts to Congressional Democrats, he described it as a “fruitless exercise” with a “low probability of success” that would “go nowhere.”
Without the passage of a federal budget the reckless spending that has run rampant in Congress will only continue. A recent Gallup poll shows that this point is not lost on the majority of Americans. Seventy nine percent of Americans view the federal debt as a serious threat to the “future well being” of our country. In addition, one hundred American economists recently wrote to House Leadership saying the way to boost the economy and create private sector jobs is to take immediate action to rein in federal spending. It is the key to boosting the economy and creating private sector jobs.
Not only must Congress produce a budget but it must also work toward balancing it as soon as possible. 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 each year. Congress must steadfastly hold the line on government spending which is why I have consistently voted for the tightest budgets offered each year.
The American people know that we can’t borrow and spend our way back to prosperity. The path to our economic recovery starts with fiscal responsibility in Washington. The federal government must follow the example set by our nation’s families and businesses – set a budget which eliminates unnecessary and wasteful spending. The future of America depends on it.
To contact me about this or any other matter, please visit my website at www.goodlatte.house.gov
Whatever happened to the Budget?
There is a question that the Americans should be asking Congress and that is: Whatever happened to the budget? It seems like a simple question that is usually addressed every year by Congress, but this year, distractions have popped up. For example, there’s the oil spill, fiscal regulatory reform, and yes, even some meddling in the European Debt Crisis. The budget has hit the wayside.
BankruptingAmerica has a great video out addressing Congress’ ignorance of the budget. The question is: Will they address it this session or will it be saved for the new Congress?
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.
How does Fairfax County Plan to Spend Stimulus $$?
Brian over at Snapped Shot reports that Fairfax County is spending its stimulus money on yet another wasteful project, which is not bad considering that the county has a hugebudget deficit.
So, what is Fairfax County spending their money on this time? How about purchasing a vacant commercial retail space and planning on burning it down to create *tada* a commuter parking lot? That’s right, they plan to use the old Circuit City building, only to burn it down, and create yet another parking lot. This is considered wasteful in one particular way, as the Franconia/Springfield Metro Parking Lot is less than a mile away and the Old Keene Mill Road lot, which is up the street and is never filled to capacity.
One would think Fairfax County would spend their stimulus dollars on something useful, like possibly eliminating the $33 vehicle decal fee, which is proposed to be brought back to help address the deficits. This is just another example of your county government at work.
We Must Control Government Spending and Lower the Tax Burden
Guest Post by Congressman Bob Goodlatte
We are just days away from one of the most dreaded days of the year. April 15th is a day filled with aggravation and frustration as hard working Americans are confronted with piles of forms, confusing instructions, and the prospect of turning their hard-earned money over to the government.
Not only are we approaching tax day but on April 9th, we marked Tax Freedom Day 2010. This is the day on which Americans have earned enough money to pay all their federal, state and local taxes for the year. That means that Americans had to work nearly a third of the year just to pay taxes. This year Americans will work longer to pay for taxes than they will to pay for food, clothing and housing combined.
By comparison, Tax Freedom Day in 1910 was January 19th, when taxes were just 5% of a person’s income. Today it takes more than 100 days for Americans to earn enough to pay the government before they can start keeping their hard earned paychecks for themselves and their families. And that doesn’t even include the higher cost of goods and services due to government regulations.
While Tax Freedom Day falls on April 9th this year, this figure also does not include the total cost of government, since it only counts what the government collects in taxes, not the additional spending that is financed via borrowing. Once deficit-financed spending is added, the result is a figure which gives a truer glimpse of what current spending may mean to future taxes. If Americans had to pay this year for all the government will spend this year, they would be working until May 17th before they earned enough to pay their taxes.
As government spending continues to spiral out of control, the tax burden on hard working Americans has been significantly increasing. Just in the last year, the Democrat-controlled Congress pushed through multiple pieces of legislation containing an unprecedented and unsustainable level of government spending. First there was the $1 trillion stimulus bill, which I voted against. It was supposed to create jobs and reinvigorate our troubled economy but it certainly hasn’t accomplished that goal. Most recently the Democrats in Congress pushed through their health care reform bill, which I also voted against. The legislation costs over $2.5 trillion and includes over $569 billion in tax increases on families, seniors and small businesses.
Since arriving in Congress, I have been a strong supporter of policies that rein in out of control government spending which ultimately help to lower the tax burden on hard working folks. Lower more efficient government spending and lower taxes are fundamental to economic growth. When we lower the tax burden on America’s families, we encourage investment, savings and job creation. I will continue pushing these pro growth policies which is the best way to keep America competitive.
To contact me about this or any other matter, please visit my website at www.goodlatte.house.gov.
