According to press reports, Democrats continue to round up votes for yet another stimulus bill (H.R. 4213). In typical fashion, members will be casting a vote either in favor of-or against-$191 billion in new spending, $75 billion in tax increases, and a $134 billion increase to the deficit.
Throwing Money after Jobs: According to an analysis by the Ways and Means Committee, this bill will cost $191 billion. This bill is another effort to stimulate the economy with more federal spending, much like the $862 billion bill - $626 billion of which is spending - stimulus the Democrats passed in early 2009. Based on the Democrats' flawed analysis, that stimulus was supposed to avert the economic crisis and keep the unemployment rate below 8 percent. Every aspect of these policies have failed-from the massive increase to the deficit to an unemployment rate that continues to rise.
Increasing Taxes... Again: This bill would increase an assortment of new taxes, to the tune of $75 billion. This is on top of the $670 billion tax increases enacted by the Democrat majority, and according to the president's budget, trillions more are on the way, including $970 billion in tax increases on upper-income earners, a category many small businesses (such as s-corporations) fall into.
Too Little Tax Relief: The Democrats continue to propose and implement laws that focus on spending, with little attention to stimulating tax relief. For each $1 of extended tax relief this bill provides, it increases taxes by $2.14. In addition, the new taxes are permanent, while the extended tax relief is set to expire.
(More) Subsidies to Wall Street: The Build America Bonds program allows for the federal government to subsidize interest costs of issuing taxable debt from state and municipalities. However, these state and local governments have paid on average, 37 percent more to investment banks for underwriting Build America Bonds than the typically issued tax-exempt bonds. With nearly $80 billion in BAB's issued so far, the windfall resulting from fees paid to big Wall Street Banks to underwrite these bonds has exceeded $1 billion.
This year's deficit could break last year's record, topping $1.5 trillion; non-defense discretionary spending has increased by a whopping 84%; and the debt is projected to have tripled since 2008. To make that all go away, the Democrats have decided not to do a budget. American taxpayers entrust upon members of Congress to responsibly spend their hard earned money; in return, they deserve accountability for all these misguided spending decisions.