U.S. Congressman LOUIE GOHMERT: Proudly Serving the First District of Texas

 

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BUDGET FACTS - Compare the Plans that Gohmert Supported Over the Unprecedented Spending Proposal Passed by the House

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WASHINGTON, DC, Apr 3, 2009 | Kate Thompson ((202)225-3035) | comments
Background on H. Con. Res. 185 (Passed by the House, Gohmert Voted Against):
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Background on H. Con. Res. 185 (Passed by the House, Gohmert Voted Against):

Spending: H.Con.Res. 85 would set the federal government's budget policies over a five-year window between Fiscal Years 2010 and 2014, with a total five-year cost of $18.258 trillion. Total spending in FY 2010 would be $3.550 trillion. The budget assumes a deficit of $1.694 trillion in FY 2009, which falls to $585 billion in FY 2013 before beginning to rise again in FY 2014. Under the Democrat budget, the debt held by the public would reach $11.577 trillion in FY 2014, or 67 percent of gross domestic product (GDP), according to estimates by the Congressional Budget Office. The budget would also increase the statutory debt limit to $13.223 trillion in 2010, or 9.2% above the current debt limit.
 
"Cap and Tax": The President's budget proposes a $646 billion national energy tax that would require businesses to purchase permits or "allowances" for their emissions-an effective tax on all energy consumption. According to a study by researchers at Massachusetts Institute of Technology, this tax will cost each average American household up to $3,128 per year in increased energy costs.
 
Government Run Health Care: The President's budget proposes a "reserve fund" of more than $630 billion in new spending on health care as a mere "down payment" for additional spending to come. The prime focus of their agenda is the establishment of a government-run health insurance plan, designed to "compete" against private health insurance and remove individuals’ ability to have more say in their own healthcare.
 
Student Loans: The President's budget proposes an effective end to federally guaranteed private-sector college loans, which would result in the government taking control of most student loans.

Unprecedented Deficits:  The budget resolution proposes the six largest nominal deficits in U.S. history. The lowest deficit proposed by the budget resolution—the $586 billion deficit in FY 2013—is $127 billion or 27.7% greater than the highest deficit in U.S. history (last year’s $459 billion deficit).   

Colossal Tax Increases:  The budget resolution proposes total tax collections equal to $14.3 trillion over five years. Compared to a baseline that assumes the extension of the 2001 and 2003 tax cuts and the “AMT patch,” the budget resolution assumes a five-year tax increase of $574 billion. The Democrat budget resolution assumes that much of this tax relief will expire.

Unsustainable Borrowing:  The budget resolution would increase the national debt to $17.1 trillion in five years, an increase of $6.3 trillion or 58% since January 20, 2009. But this increase is actually understated in two respects. First, the Democrat budget resolution hides what its policies would lead to over the full ten-year budget window. Second, the Democrat budget resolution does not “budget” for several items that are likely to either reduce revenue or increase spending (such as the AMT “patch”).  

Skyrocketing Discretionary Spending:  The budget resolution sets a 302(a) discretionary spending allocation equal to $1.099 trillion for FY2010 regular appropriations (excluding emergency spending), an 8.6% increase compared to FY2009.
 
Background on Alternative Budget Proposals
1.) Summary of the Republican Budget Alternative (Gohmert Voted in Favor):
- Spends $4.8 trillion less than the Democrats’ budget over 10 years.
- Brings spending back down to 20.7% of gross domestic product (GDP), in line with
the historical average, instead of climbing to 24.5% of GDP as proposed in the
Obama budget.
- Freezes non-defense/non-veterans spending, instead of increasing non-defense
spending by over 9% as proposed in the Obama budget.
- Brings debt under control, borrowing $3.6 trillion less than the Obama budget over 10 years.
- The GOP budget holds debt to 65% of GDP, instead of soaring to over 82% of GDP
and nearly tripling over the 10-year period as proposed in the Democrats’ budget.
- Puts forward a long-term budget to bring debt under control, instead of burying our
children under a mountain of debt that will result from the Democrats’ budget.
- Does not raise taxes. Instead of imposing $1.5 trillion in tax increases on investors, small
businesses, and families as proposed in the Obama budget, the Republican budget extends
tax relief avoiding tax increases during a recession.
- Avoids scheduled tax increases in 2010 by permanently extending 2001 and 2003 tax
relief.
-Permanently fixes the Alternative Minimum Tax.
- Creates 2.1 million more Jobs than the Democrats’ Budget. Instead of a big government
strategy in which Washington attempts to spend, tax, and borrow America to prosperity, the
Republican budget puts its faith in individuals, small business and private sector investment
to generate economic and job growth.
- Suspends capital gains taxes through 2010 instead of increasing taxes on investment
as proposed in the Obama budget.
-Reforms the tax code making it simpler, more pro-growth, and more competitive,
instead of making it more burdensome and complex as proposed in the President’s
budget.
- Reduces corporate tax rate to 25% (from 35%, second highest in the industrialized
world) to make U.S. companies more competitive and create American jobs.
- Funds National Priorities
- Increases the Defense budget by $5 billion over the Obama budget and reserves the
$50 billion annual “placeholder” for the war or unmet DOD needs.
- Increases Veterans funding by $540 million over the President’s budget.
- Provides for health and retirement security by reforming programs to ensure they can
provide benefits for future beneficiaries.
 
2.) Overview of the Republican Study Committee (RSC) Budget Proposal (Gohmert Voted in Favor):
- Improves the budget outlook in every single year
- Balances the budget by FY 2019
- Cuts the national debt by more than $6 trillion compared to the President’s budget
- Provides an extension of the 2001 and 2003 tax cuts, the AMT “patch,” and a two-year suspension of the capital gains tax—with reconciliation instructions
- Makes NO changes to Social Security
- Allows Medicare spending to increase at the rate of average, projected economic growth (4.2%)—a similar proposal was included in the 1995 Contract with America budget
?? Allows Medicaid spending to increase at the rate of average, projected inflation (1.1%)—a similar proposal was included in the 1995 Contract with America budget
- Requires each committee to find savings equal to one percent of total mandatory spending under its jurisdiction from activities that are determined to be wasteful, unnecessary, or lower-priority.
- Assumes repeal of most of the cost of the “stimulus” and the extra spending in the FY 2009 omnibus
- Provides full defense funding, equal to the President’s request (plus money for overseas operations)
- Assumes NO cuts to veterans spending
- Makes real reductions to non-defense discretionary spending: a “zero-growth” baseline for non-defense spending, PLUS a one percent annual reduction to non-defense spending, plus additional savings from lower priority programs
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