Sen. Tom Harkin (D-Iowa) today became the latest in a growing list of Democrats who claim that the federal government does not have a spending problem.
One for Three, and Savings for All
“To sequester, or not to sequester?” That appears to be the question for many of our congressional Hamlets.
Rep. Pelosi’s Comment Misses the Mark on the U.S. Budget Problem
This weekend, House Majority Leader Nancy Pelosi (D-Calif.) spoke with Chris Matthews on “Fox News Sunday.” During the interview, Pelosi delivered a quote that may be the early front runner for most absurd quote of 2013: “It is almost a false argument to say that we have a spending problem.
Higher Taxes Will Lead to New Spending
The fiscal cliff, a combination of automatic budget cuts and tax increases set to take effect at the beginning of 2013, has dominated the news since the 2012 Presidential election. The effect of going off the cliff would be detrimental to the U.S. economy, potentially leading to a 3.6 percent decline in the gross domestic product. These impending negative consequences have led to Congress and the president scrambling to strike a deal.
Sequestration: The Sky is Not Falling
On August 2, 2011, Congress passed the Budget Control Act (BCA), which raised the debt limit, cut $917 billion in federal spending over 10 years, and established the Joint Select Committee on Deficit Reduction (the “super committee”). The super committee was supposed to produce legislation by November 23, 2011 to further reduce spending by at least $1.5 trillion over 10 years.
Budget Season: The Most Expensive Time of the Year
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.
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.
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.
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.