Under President Obama’s watch, federal spending has continued to balloon unchecked and taxpayers now hold the bill for a staggering $15.6 trillion national debt. There has never been a more crucial time in the nation’s history to pass a fiscally responsible, deficit-reducing budget.
It’s Déjà Vu All Over Again: GAO Exposes Government Waste and Duplication at its Worst
On March 1, 2011, the Government Accountability Office (GAO) published “Opportunities to Reduce Potential Duplication in Government Programs, Save Tax Dollars, and Enhance Revenue,” identifying 34 agencies, offices, and initiatives that provide similar or identical services to the same populations, along with 47 programs that are either wasteful or inefficient. The list includes 18 nutrition and food assistance programs, 47 job retraining programs, and 80 economic development programs, along with $77 billion of waste at the Department of Defense and $125 billion in improper payments by government agencies, among many others.
Obama Doubles Down on Corporate Welfare
On February 17, 2011, after touring Boeing’s plant in Everett, Washington, where the Dreamliner is built, President Obama announced that he will ask Congress to reauthorize the Export-Import Bank of the United States (Ex-Im Bank), and that he will encourage the bank to match export financing provided by foreign governments in an effort to “ensure that [manufacturers] are competing on an even footing.” The President’s statement dovetails with his “fairness” agenda, but Ex-Im Bank is unalloyed corporate welfare. Its populist mission – the subsidization of American exports – might appeal to a wide swath of economically unsophisticated observers, but it is nonetheless un unfair giveaway of tax dollars. Ex-Im Bank should be terminated, not renewed, and certainly not expanded.
President Obama’s Corporate Tax Plan Invites Crony Capitalism
On February 22, 2012, President Obama released a proposal to lower the corporate tax rate from 35 percent to 28 percent, while also eliminating loopholes in the tax code. Considering that the effective corporate tax rate of 34.6 percent in the U.S. is the highest rate in the Organization for Economic Cooperation and Development (OECD) and is nearly 50 percent higher than the OECD average, a move to a lower rate is long overdue. Unfortunately, the devil in the White House’s plan lies in the details.
Obama’s Proposal to Merge Agencies Merits Thorough Review
As part of a larger proposal to shrink and streamline government, the Obama administration announced on January 13, 2012 that it is seeking congressional approval to merge federal agencies. The President’s plan would not allow Congress to modify administration proposals, but the adoption of any plan would be subject to an up-or-down vote.
State and Local Government Defined Benefit Plans Are “Inherently Flawed”
On January 10, 2012, Senator Orrin Hatch (R-Utah) released a report on state and local government defined benefit pension plans in which he detailed the risks associated with the nation’s $4.4 trillion public pension debt, calling the defined benefit pensions structure “inherently flawed in the state and local government setting.” This massive liability is dangerous for taxpayers and could mean future cuts in services, reductions in benefits, higher taxes, or a combination of these less-than-desirable options.
The Elephant in the Room
Every summer, Citizens Against Government Waste (CAGW) combs through the dozens of budget proposals drafted by Presidents past and present, senators, representatives, think tanks, and nonprofits in an effort to come up with a list called Prime Cuts that would hack away at government bloat and lighten the load for taxpayers. CAGW staff takes this project seriously, leaving no stone unturned and sparing no agency. Last year, for the first time since 1993, CAGW produced a Prime Cuts Summary detailing the federal government’s most wasteful and outdated programs.
Time to End Earmarks Once and For All
Year after year, lawmakers have sullied the political process by directing chunks of the federal budget back to their home districts and states to promote their own reelections and reward special interests. In an attempt to put an end to this form of profligate spending, Senators Claire McCaskill (D-Mo.) and Pat Toomey (R-Pa.) recently introduced S. 1930, The Earmark Elimination Act, which would build upon and make permanent the current earmark moratorium that is set to expire at the end of 2012.
Federal Contractor Pensions Protected at Taxpayers’ Expense
Taxpayers may be surprised to learn that they are currently bankrolling the retirement plans of profitable, private sector companies. With a record-breaking national debt, a sinking economy, and millions of Americans facing losses to their own retirement accounts, taxpayers should not be on the hook for tens of billions of dollars for private contractor pensions and benefits.
Minibus Drives Savings
On November 18, 2011, President Obama signed the “minibus” appropriations legislation, which contained three fiscal year (FY) appropriations bills: the Department of Agriculture, Rural Development, Food and Drug Administration, and Related Agencies; Commerce, Justice, Science and Related Agencies; and Transportation, Housing and Urban Development, and Related Agencies. According to a November 17, 2011 press release by House Speaker John Boehner (R-Ohio), the legislation decreases spending in these appropriations bills by $7 billion from fiscal year (FY) 2011, and comes in at $98 billion below the president’s budget request.