Continuing (Resolution) Unsustainable Spending:
With the adjournment of the House of Representatives, Democrats put aside the priorities of the country in order to return to their districts to complete the campaign season. The legislative priorities the Democrats hammered through at midnight on September 30, 2010, were void of any effort to prevent a $3.9 trillion tax increase on the nation’s families and job creators. Instead, the Democrats chose to increase taxes and expand government by preserving its unsustainable spending levels.
Massive Expansion of Government: Above the projected levels of government spending by the Congressional Budget Office, the House Democrats have approved $3.183 trillion in new spending since 2009. This includes big-ticket spending items such as the following:
“If You Can’t Budget, You Can’t Govern”: Those were the remarks made by Current Budget Committee Chairman John Spratt (D-SC) in 2006 after Republicans decided not to vote on their own budget resolution. This year, House Democrats not only failed to vote on a budget resolution, they failed to even propose a budget for the first time since the 1974 Congressional Budget Act was signed into law.
Leveraging America’s Future: The unsustainable Democrat budgets will ultimately result in a declining standard of living for future generations. For example, a child born this year will inherit $29,178 in public debt. By the time that child graduates from college, based on Congressional Budget Office (CBO) projections, they will be liable for $103,826 of government debt.
Democrat Deficits Unsustainable: Recently, President Obama’s former Budget Director, Peter Orszag, was quoted as saying, “A sustainable level [of deficits] is more like three percent or lower.” In 2009, the deficit amounted to 9.9 percent of GDP, and again this year, they are on pace to reach 9 percent of the economy. In fact, according to CBO estimates, Democrat budgets will run unsustainable deficits indefinitely.
Failed to Address Entitlement Crisis: Currently, Social Security and Medicare have a combined $43 trillion unfunded liability, a per household burden of $379,475. By doing nothing, these unfunded liabilities will increase by $14 trillion in less than five years, increasing the burden by $120,939 (total of $500,414) per household. Doing nothing to help save these programs effectively allows them to go into bankruptcy. Unfortunately, the Democrats have not only failed to address the problem, they’ve made it worse by adding an additional $2.6 trillion to the problem with ObamaCare.
Democrats Set to Raise Taxes by $3.9 Trillion:
The Democrats adjourned the Congress allowing the largest tax increase in America’s history to impact all taxpayers to the tune of $3.9 trillion on January 1. While they tried to manipulate the narrative by saying they will increase taxes only for the wealthy, in reality, the Democrats’ misguided policies will result in higher taxes for all taxpayers.
$685 Billion Down, $3.9 Trillion to Go: President Obama’s very first budget called for $1.4 trillion in tax increases, and his budget this year called for another $1.8 trillion in tax increases. If the House approved cap and trade legislation were enacted, it would increase taxes by an additional $873 billion. So far, the Democrats have succeeded in enacting tax increases by more than $685 billion since 2009.
Low- and Middle- Class Tax Increases: The Democrats wanted you to believe that nearly $4 trillion in tax increases was subject only to the wealthy. In what may come as a surprise to many, their policies will effectively increase taxes on everyone.
Dismal Economic Policies:
The policies of the Democrat-led Congress have been depressing—quite literally. The White House’s Office of Management and Budget (OMB) now predicts that the nation will have another year (2011) of unemployment that remains well above nine percent, and CBO has suggested that increasing taxes will lead to lower economic growth and higher unemployment.
$1.2 Trillion ‘Stimulus’ Experiment = 2.6 Million Jobs Lost: The Democrats ‘stimulus’ experiment will cost every single taxpayer $7,692—a bill taxpayer’s will pay for years to come. When signed into law in February 2009, Democrats promised 3.7 million new jobs; instead, the nation’s economy has lost a net total of 2.6 million, including 2.4 million private sector jobs.
Sputtering Economic Growth: The 1.7 percent GDP growth rate in the 3rd quarter is far below Democrat projections, and it appears the economy may worsen, as some economists and major banks are now project the economy to likely be “very bad” over the next 6 to 9 months. In addition, household wealth continues to decline, recently falling by $1.5 trillion in the 2nd quarter of 2010. U.S. households have lost more than $12 trillion since the beginning of the recession.
Home Sales Continue to Decline: After the Democrats characteristically tried to prop up home sales with more government spending, home sales are once again at record lows. Sales of existing houses were the second-lowest on record in August, and new home sales also remain at near-record lows.
Lackluster Job Creation: For a record of 14 consecutive months, unemployment has remained above 9.5 percent—the longest span since the great depression.
Source: Ways and Means Committee Republicans, House Budget Committee Republicans, BLS.gov, Tax Foundation