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Congress Must Reduce Government Spending
Guest Post by Congressman Bob Goodlatte
Just days ago President Obama’s National Commission on Fiscal Responsibility and Reform met for the first time. At that meeting Federal Reserve Chairman Ben Bernanke expressed extreme concern over the effect of out-of-control government spending on the future of our nation’s struggling economy. Bernanke warned that “even after economic and financial conditions have returned to normal, in the absence of further policy actions, the federal budget appears set to remain on an unsustainable path.” This same message was previously delivered by Peter Orszag, the President’s Director of the Office of Management and Budget. When speaking to a group at New York University he said “deficits of this size are serious and ultimately unsustainable.”
The federal budget deficit is projected to exceed $1 trillion for the next two fiscal years and exceed $800 billion annually for at least the next decade. While Chairman Bernanke and Director Orszag are right, their warning is not consistent with their actions. They promoted the government purchase of private businesses and assets in the TARP legislation, wasteful spending in the so-called stimulus bill and a $1.6 trillion shortfall in the budget for next year. We simply cannot continue down this fiscally irresponsible path. It is time Congress takes control of spending instead of letting it control the Congress.
Last week, with the support of an overwhelming majority of Republicans in the House, I introduced legislation aimed at saving taxpayer money and reducing the deficit by reforming the often abused earmark process. In an effort to rein in government spending, the House Republican Conference recently adopted a party rule that instills a year-long moratorium on Members obtaining earmarks in the appropriations process. While this is a positive step, more must be done to actually save taxpayers’ money. Earmarks are only a very small percentage, less than one percent, of government spending but irresponsible earmarks are emblematic of a larger problem and indicate the lack of scrutiny and tough decision making that Congress applies to the entire government budget and spending process. My legislation calls on House Democrats to join House Republicans in a one year moratorium on all earmarks and directs total discretionary spending to be reduced by the same amount saved by this earmark moratorium.
Additionally, I have introduced bipartisan legislation which forces Congress to enact fiscally responsible spending measures and reduce the deficit by requiring that total spending for any fiscal year not exceed total receipts. By requiring the federal government to balance the budget it ensures that Congress and the President are held accountable to the American taxpayers.
Working to reduce government spending is a significant undertaking and one to which I remain firmly dedicated even in a Congress where excessive spending runs rampant. Congress must balance the budget and ultimately eliminating the debt by being good stewards of taxpayer money. I believe it is our duty as Members of Congress to exercise great care and responsibility in managing our spending priorities and I will continue working to make sure the hard-earned dollars of my constituents are handled responsibly in Congress and that wasteful government spending is stopped.
Story Time and More Taxes?
Fairfax County will be facing increased taxes in the coming year. Thanks to a 7-3 party line vote on the budget during yesterday’s Board of Supervisors meeting. Residents will be paying more in car taxes, as the decal fee is back, and an increased sewer tax. This will bring $11.7 million back to the county, but it will definitely place more economic strain on residents. The funds received from the car tax increase will not go to transportation improvements, rather it will go back into the general fund.
Braddock Supervisor John Cook stated it quite eloquently when he said, “The only way a homeowner pays less in this budget is if [they] don’t own a car and [they] don’t flush [their] toilet.”
Aside from the bad news, there was something strange going on prior to the start of the session though. Chairwoman Sharon Bulova decided to open the session with story time. As you can see in this video (fast forward to the 5:10 mark for the story), story time should make all of us feel good about tax increases, right? Wrong. Despite the fact that Fairfax County is one of the most expensive places in the country to live, tax increases only add to the frustrations of those in the area, especially when they find out that unnecessary programs were not sent to the chopping block before considering such a plan.
Perhaps, Chairwoman Bulova and her fellow Democrats on the Board of Supervisors should read the new story, “Welcome to Fairfax County: The Nightmares Caused by Increased Taxes.” I think the best line from this story is the lost revenue caused by residents fed up and moving to counties with lower taxes.
Keith Fimian Releases First TV Ad of 2010 Campaign
Keith Fimian, candidate for Congress in Virginia’s 11th District, released his first TV ad today. The ad, “Mess,” which focused on the budget deficits and Congress’s inaction to address the economy. Fimian released the following statement regarding the release of the new ad:
“I am excited to announce that my campaign is again the first one on the air in this race. First radio and now TV taking on Gerry Connolly and Nancy Pelosi for the ‘mess’ they have created. Their policies are destroying our economy, from the government healthcare takeover to their failed stimulus to their trillions in debt,” Fimian said.
“I am the only candidate in this race who has created even one job—and I have created hundreds of them. I have the know-how to get our economy moving again. These are skills career politicians simply do not possess. We need more than the same tired rhetoric from career politicians to clean up the mess Connolly and Pelosi have created in Washington,” Fimian said.
“My campaign is the leader in the fight against liberal Gerry Connolly,” Fimian added. “I out-raised my primary opponent in his first quarter in the race and I am the first one on the airwaves. I am the only candidate with the message and resources to defeat Gerry Connolly.”
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.
Taxes in the 11th District Race…Ironic, don't you think?
Yesterday was tax day, which is when many people line up at the post office to get their income taxes filed in a last minute rush. Rising taxes are no doubt on the minds of many in the 11th Congressional District, as our current Congressman Gerry Connolly has voted in favor of every tax hike House Speaker Nancy Pelosi pushed through the House of Representatives. People are mad over the tax increases, as the economy continues to decline and unemployment continues to rise.
Both Republican candidates for Congress have voiced their opposition against tax increases. Keith Fimian came out against tax increases, and in a recent statement, he slams Connolly for raising taxes by $670 billion.
“Tomorrow is the deadline for Americans to file their taxes. After thousands of pages of complex code, billions of hours of preparation, and hundreds of billions spent on compliance, the Federal government takes an enormous bite out of the earnings of millions and millions of hardworking Americans,” Fimian said. “And Gerry Connolly doesn’t think these Americans pay enough. In just 16 months, he has voted for $670 billion in tax increases, including $316 billion that directly hit the middle class.”
“At $42 billion in tax increases for every month Connolly’s been in office, and by the time voters throw Gerry Connolly out of Congress in November, we’re looking at another quarter-billion in tax increases,” Fimian said.
“Connolly’s lust for tax increases isn’t a surprise,” Fimian said. “These tax increases and a lot of borrowing pay for the reckless spending and earmarks that he and other career politicians believe they can use to secure their re-elections.”
“During his tenure on the Fairfax County Board of Supervisors, Connolly doubled the average property tax bill in Fairfax County from $2400 to $4800,” Fimian said. “We couldn’t afford Gerry Connolly on the Board of Supervisors and we can’t afford him in Congress.”
Yesterday, Pat Herrity also sent out a letter to supporters saying that he opposed tax increases and even voted against tax increases as Springfield District Supervisor.
Today is Tax Day, the day every year when we send our hard-earned dollars to Uncle Sam.
If your tax bill is relatively low this year, savor it. Over the next 10 years, your tax bill is going to skyrocket because of the tax-and-spend policies of Gerry Connolly and his mentor, House Speaker Nancy Pelosi.
Since Connolly crossed the river into Washington to team up with the Speaker from the bankrupt state of California, he has voted for every tax hike put to a vote. The House’s Ways and Means Committee Ranking Member Dave Camp added them up. Connolly has voted for $670.341 billion in new taxes in the less than 16 months he has been in Congress. Connolly’s gross tax increases equate to more than $2,100 for every man, woman and child in the United States.
Gerry Connolly will tell you he has lowered taxes since he went to Congress – ignoring the $570 billion worth of tax increases in Obamacare alone.
We shouldn’t be surprised. Connolly has always claimed to cut taxes. He made that claim when he reduced the tax rate as a Fairfax County supervisor, yet the amount of taxes property owners paid under his watch doubled from $2,400 to $4,800 in just seven years – increases Connolly supported. It’s a new type of math – Connollymath.
These are the kind of dishonest smoke-and-mirrors tricks that we see so much of in Washington, and it is exactly the type of culture that is hurting our families and our businesses. We need to bring honesty and accountability back to Washington. We need jobs, not big government.
I have never and will never vote to raises taxes. Accordingly, I have signed the taxpayers’ protection pledge.
More importantly, I am the only candidate in this race that has a proven record of lowering taxes, cutting spending and reducing the size of government.
While Herrity declares his intentions to never raise taxes, this does not mean that he did not support a potential tax increase. According to The Washington Examiner and Agenda Item 2 of the Fairfax County Board of Supervisors Meeting on December 21, 2009, Herrity voted in favor of Phase II of the Dulles Rail Transportation Improvement District. This is a move, which according to The Examiner would require the county to loan money as a way to finance the second phase of the Dulles expansion, if a tax increase was not imposed.
As our economy is downfall mode, can we truly afford additional taxes? No, tax increases only harm prosperity and hurt working families. Hopefully, both Republican candidates will stand by their promises not to raise taxes once elected.
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.
Balancing the Federal Budget
Guest Post by Congressman Bob Goodlatte
It is no secret that the American people are facing a very tough economic climate. Families and small businesses are cutting back on expenses. As economic uncertainty continues, many across our nation are looking to the government for leadership during this difficult time. In these challenging economic times it is even more important for government to control spending. The federal government must work to both eliminate every cent of waste and squeeze every cent of value out of each dollar our citizens entrust to it. When you are preparing a budget for your family, you know that you can’t spend more than you take in. It’s a simple concept but one that Congress has failed to adhere to for far too long. We must balance the budget and reduce the deficit and the debt – not by raising taxes, but by being good stewards of taxpayer money.
Because it has become clear that neither party can exercise the self control necessary to rein in excessive spending, I have introduced a balanced budget amendment to the Constitution, H.J. Res 1, to force Congress to do so. My legislation, which has the support of 175 bipartisan Members of the House, ensures that the federal government is held accountable and that the money our citizens work so hard to earn is not squandered on wasteful spending and programs.
My balanced budget amendment, which is identical to the legislation that passed the House in 1995 by a vote of 300-132 and fell just two votes short of passage in the Senate, forces Congress to enact fiscally responsible spending measures and reduce the deficit by requiring that total spending for any fiscal year not exceed total receipts. The legislation also includes a specific exception to the balanced budget provisions in times of war or other national emergencies.
This week I was pleased to join with Congressmen Mike Coffman, a Republican from Colorado and Jim Marshall, a Democrat from Georgia, in launching a new Congressional caucus aimed at adding support for a balanced budget amendment to the Constitution. The bipartisan caucus will be dedicated to achieving passage of H.J. Res. 1, and to educating Members of Congress on the necessity and importance of the proposed amendment to the Constitution.
As our nation faces many difficult decisions, Congress will face great pressure to spend beyond its means rather than making difficult decisions about spending priorities. My balanced budget amendment ensures that Congress and the President are held accountable to the American taxpayers. Unless Congress is forced to make the decisions necessary to create a balanced budget, it will always have the all-too-tempting option of shirking this responsibility. Americans are desperate for fiscal reform and the Balanced Budget Constitutional Amendment is a common sense approach to ensure that Congress is bound by the same fiscal principles that America’s families face each day.
To contact me about this or any or matter, please visit my website at www.goodlatte.house.gov.
The American People Must Be Heard
Guest Post by Congressman Bob Goodlatte
This week President Barack Obama sat down with a bipartisan group of House and Senate Members to discuss health care reform. While only time will tell I hope that this signals a true turning point in the health care discussion. The American people have repeatedly called on Washington to scrap these massive health care bills in favor of a more modest approach. I have held town hall meetings, telephone town hall meetings, and I’ve received thousands of letters, phone calls and e-mails from folks all across the Sixth Congressional District and the message is simple: Washington must push the reset button on health care reform.
In fact, a recent opinion poll shows that 61 percent of Americans would prefer a more modest approach to health care reform which includes allowing the purchase of insurance across state lines to improve competition, creating a risk pool to help people with pre-existing conditions afford coverage, and curbing lawsuits against doctors to cut down on the practice of defensive medicine. Only 21 percent of the participants in this nationwide poll favored the massive bills currently being pushed by the President and Speaker Pelosi.
While American families want health care reform that will expand access and choices and decrease costs, the proposals currently before Congress include tax increases, Medicare cuts, job-killing mandates, and higher premiums. This latest health care bill is nothing more than the same government-run insurance, mandates and taxes the American people have overwhelmingly rejected.
Instead we must focus on strategies that help Americans obtain the best quality health care at the least cost, and ensure 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.
My constituents have told me they overwhelmingly support proposals which allow for the purchase of health insurance across state lines, allow individuals and small businesses to join large pools to get more competitive rates, provide tort reform to cut down the high cost of defensive medicine, allow full tax deductibility of health insurance premiums, provide portability of health insurance and protection against pre-existing condition exclusions. I agree and in addition, I support health insurance tax credits for individuals and families who don’t have access to employer-based health insurance, increasing the number of community health centers, and encouraging the use of health information technology to achieve greater efficiencies.
Our nation’s health care system needs reform. Now is the time for action. It is my hope that this Health Care Reform Summit will launch a true bipartisan health care debate. I look forward to working with others in Congress to advance the principles that have strong public and bipartisan support and enacting legislation that makes health care more affordable and more accessible for all Americans.
To contact me about this or any other matter, please visit my website at www.goodlatte.house.gov.
Tax Increases on the Horizon in Fairfax County
At a Board of Supervisors hearing on Tuesday, Fairfax County Executive Anthony Griffin released his budget recommendations for fiscal year 2011, which begins July 1, 2010 and goes through June 30, 2011. It should come as no surprise that the recommendations include bringing back the vehicle registration fee and a real estate tax increase. While the budget recommendations do have some cuts, such as no pay raises for county employees, there is one key agency that is requesting additional funds and it might contribute to more tax increases.
Now, it might not seem odd that the Fairfax County School Board is requesting additional funds, but the economic situation requires cuts in this agency as well. For example, Fairfax County is seeking more funds to pay for pensions and better health care coverage. Meanwhile, there are taxpayers struggling to keep their health care coverage. While public education is an essential service, the school board should look over their own specific budget and tailor it accordingly.
Speaking on the budget recommendations, Arthur Purves, President of the Fairfax County Taxpayers Alliance, said:
The county and school system went on a spending binge during the housing bubble. County and school salary increases far exceeded private-sector salary increases. In addition, county and school employee benefits costs soared to pay for pensions and generous health insurance, while the private sector-taxpayer is losing pensions and health insurance.
Specifically, the school board has a one-year $98M increase in employee benefits costs, of which $71M is for pensions, $15M is for retiree healthcare, and the rest for health insurance. If they do not get a tax increase, the school board will lay off teachers, increase class size, and cut band and sports to free up $98M. This is after an eight-year period where school salaries increased faster than taxpayer salaries.
The county also has a $35M increase in pension costs.
We believe it is unfair to raise taxes so that the county employees can be better compensated than the taxpayers. Instead, the county and schools should cut salaries to free up money to pay for employee benefits increases.
Perhaps, it is time to look at each department in Fairfax County and evaluate their budgets carefully. It is not the time for tax increases, rather it is the time to find where there is excessive spending and find ways to reduce it.
