FRC Action Will Press Forward Until Congress Stops Planned Parenthood's Money Grab

/PRNewswire/ --The House of Representatives cleared a "bridge" appropriations measure early this morning that is expected to give negotiators time to write legislation that would fund the government through Sept. 30, after announcing an agreement on the larger package. The package bans taxpayer funding of abortion in the District of Columbia but continues to provide taxpayer subsidies to abortion giant Planned Parenthood.

Family Research Council Action President Tony Perkins made the following comments:

"We are pleased that negotiators have agreed to reinstate the long-standing law against taxpayer funding of abortion in the District of Columbia, but abortion giant Planned Parenthood will continue to receive hundreds of millions in taxpayer dollars in spite of its record of abusing innocent young victims and willingly covering up the horrors of sex trafficking.

"Contrary to assertions made by Senate Majority Leader Harry Reid and Senate Democrats, no family planning funds were ever threatened during this most recent budget debate. The proposed language simply says that if you provide abortions you can't get federal monies. In troubled economic times, taxpayers should not be subsidizing organizations that perform abortions. The money would much better serve recipients who do not have abortion as their central 'product.'

"We will continue to press Congress to adopt a 2012 budget that reflects the beliefs of most Americans who may disagree over abortion but broadly agree that they do not want their hard earned money going to abortion organizations.

"Our elected leaders should not be at a loss of words when it comes to protecting mothers and their unborn children from the horrific practice of abortion. We urge Congressional leaders to move forward with hearings to further expose and stop taxpayer funding of an organization that has been complicit in statutory rape cases, mishandled funds, and accepted donations for abortions with offensive racial overtones."

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Libertarians praise Congress on April Fool's Day

The Libertarian Party congratulates Congress for passing a budget that makes serious cuts in federal government spending, including the following:

1. Eliminating Department of Education programs, saving taxpayers more than $40 billion each year.
2. Getting rid of farm subsidies, saving over $20 billion each year.
3. Ending the wars in Iraq and Afghanistan, as well as many other overseas deployments, saving over $100 billion annually.
4. Eliminating programs and subsidies in the Department of Transportation, saving about $80 billion annually.
5. Terminating federal housing subsidies, saving about $45 billion each year.
6. Giving overpaid federal employees a 10% cut in compensation, saving $30 billion annually.
7. Throwing out federal energy subsidies, saving $20 billion annually.
8. Reducing and reforming Medicare and Medicaid, saving about $100 billion a year for the next ten years.
9. Ending the federal War on Drugs, saving $15 billion annually.
10. Phasing out mandatory Social Security, and reducing the rate of benefit growth to save $40 billion a year by 2020.

"April Fool's!" cried Libertarian Party Executive Director Wes Benedict. "Congress hasn't done any of those things. Congress is causing the federal government to keep growing rapidly. And don't be fooled by the recent hype about Republican proposals for 'cuts.' Those 'cuts' are so small and so peripheral, that even if they pass, they won't have any effect on the fiscal catastrophe facing our children and grandchildren. Republicans and Democrats continue to link arms and keep our federal government huge and growing."

Benedict continued, "We got that list of items from a Cato Institute advertisement that ran in several major news outlets today. Of course, we wish Congress would cut all those things, but we know Republicans and Democrats won't do it."

The Libertarian Party platform calls for major reductions in the size and scope of government.

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LP Chair: The problem in Wisconsin is not unions but government

While Republicans and Democrats battle in Wisconsin over a bill to reduce the collective bargaining power of state employee unions as a means of balancing their budget, Libertarian Party Chair Mark Hinkle points out that the problem lies with government control of activities it has no business running.

Hinkle comments, "Libertarians are neither pro-union nor anti-union. We believe that the right of association and freedom of contract allows any group of people to choose to bargain collectively rather than individually. Naturally, we oppose violence and threats of such, but unions per se can play a major role in a free society. The problem is that the battle between the Wisconsin state government and state employees isn't even remotely a free market.

"Government monopolizes many services that could and should be provided in the voluntary sector by profit-making and/or non-profit organizations. This also gives them a 'monopsony' as virtually the only potential employer for workers in these fields. Once someone has trained to be a teacher or prison guard, they are essentially at the mercy of government for their employment in that field. Blaming them for wanting collective bargaining representation would be comparable to siding with the Polish government against the union Solidarity headed by Lech Walesa that freed Poland in 1989 from Soviet rule. The problem is with the employer: the government."

Hinkle considers the education budget to be the best example of a solution only Libertarians have offered:

"Far and away the largest part of the budget of the State of Wisconsin, once aid to local governments is allocated to underlying expenditures, is in the category of education. This is true of virtually all state and local governments, so it is the best example of how freedom can provide a solution. Unfortunately, government expenditures for education are driven by political considerations rather than the needs of the students. The result is outrageous costs that are not primarily for the most important ingredient in education: the teacher.

"The U.S. Department of Education calculates that the per pupil cost of K-12 education is nearly $11,000 in the 2010-2011 fiscal year. The Cato Institute, however, in a paper entitled, 'They Spend WHAT? The Real Cost of Public Schools,' discovered that actual spending in the districts they examined was 44 percent higher than official reports due to the failure to include various categories (such as spending financed by bond issuances). We can reasonably estimate that true spending is more than $15,000 per pupil. With class sizes, on average, exceeding 20, the total spending per classroom is probably well in excess of $300,000. Obviously, most of that money isn't going to the teacher in the classroom. In private schools that don't depend on taxpayers, it does: teacher pay and benefits averages nearly 80% of the total budget of the average private school. Not surprisingly, while private schools are often described as havens for the rich, public school spending per pupil is nearly DOUBLE the average private school tuition, mainly because it is a haven for administrators and other recipients of `education' money who never step foot into a classroom.

"The answer to Wisconsin's budget crisis, and that of governments throughout the country, is to return education to the voluntary sector. Compulsory education dominated by tax-supported schools was not established until the mid-1850s, yet literacy rates prior to that time were higher than they are today. Parents have ALWAYS valued the education of their children, and the religious and secular private schools of that time knew they'd only be paid by parents if they taught their children. Free or reduced costs for poor parents was always part of the tradition, and would be again in a country freed of massive taxation and spending.

"Returning education to the voluntary sector and eliminating compulsory funding and attendance laws, not to mention centralized bureaucratic nightmares such as the bi-partisan No Child Left Behind Act of 2001 championed by Republican President George W. Bush and the late Democratic Senator Edward Kennedy, will free teachers to be responsive to the needs of their students instead of the desires of politicians. As for how to do it quickly, a case can be made for selling all the local schools and putting the proceeds into the underfunded pension and benefits funds, then leaving the reorganization of education in the hands of the buyers. But, the workers at these schools are the ones with the strongest interest in ownership. We could just give each school to its local employees and let them decide whether to run it or sell it. Either way, the teachers, the students, the parents, and the taxpayers are all big winners.

"Education is the largest item in the Wisconsin budget, but the same principle applies to other expenditures. The legitimate debate in Wisconsin and elsewhere is not about whether the politicians or the government employee unions should win. It is why we should be stuck with only one employer sucking the money from taxpayers and then complaining when their power to decide how it is spent is not unlimited."

The Libertarian Party platform includes the following:

2.7 Labor Markets
We support repeal of all laws which impede the ability of any person to find employment. We oppose government-fostered forced retirement. We support the right of free persons to associate or not associate in labor unions, and an employer should have the right to recognize or refuse to recognize a union. We oppose government interference in bargaining, such as compulsory arbitration or imposing an obligation to bargain.

2.8 Education
Education, like any other service, is best provided by the free market, achieving greater quality and efficiency with more diversity of choice. Schools should be managed locally to achieve greater accountability and parental involvement. Recognizing that the education of children is inextricably linked to moral values, we would return authority to parents to determine the education of their children, without interference from government. In particular, parents should have control of and responsibility for all funds expended for their children's education.

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The Libertarian Party of Georgia Says Immigration Bill Will Bankrupt Georgia

Last week, State Representative Matt Ramsey (R-Peachtree City) introduced
the “Illegal Immigration Reform Enforcement Act of 2011,” or HB 87.
The Libertarian Party of Georgia opposes the bill, citing the huge
cost to enforce it even though the General Assembly is tasked with a
nearly $2 billion budget crisis. They also say that the bill could
have catastrophic effects on the economic well-being of the state, as
well as in the lives of its residents if passed.

As proposed, HB 87 would make criminals of many otherwise law abiding
Georgians trying to make a living. The bill makes it a criminal offense
by merely “encouraging” an illegal immigrant to enter the state. It
also allows almost any citizen to bring a lawsuit against any business,
local or State government agency or official by just accusing them of
violating immigration law. Further, HB 87 burdens every employer doing
business in Georgia with using the Department of Homeland Security’s
E-Verify system.

"As it is written, this bill will have a tremendous impact on the every day
lives of all Georgians and will cost the State quite a bit of money
defending it from the several lawsuits already planned," says
Libertarian Party of Georgia Legislative Director Jeff Sexton. "We are
calling on Representatives to truly get serious about immigration, and
enact genuine reform that respects the rights of all individuals."

One other aspect troubling the Libertarian Party of Georgia is the
provision within that allows law enforcement officers to indefinitely
detain anyone unable to provide their driver’s license or other "proof"
document. HB 87 allows for anyone forgetting their driver's license to
be jailed even after release would normally be required without
probable cause. It also re-introduces the secure and verifiable
document issue, something that has landed the state in the courts as a
defendant for the way Georgia tried to use it in election law...
another action that could cost the state significant legal bills to
defend.

“This bill is a reaction to a poor national immigration policy, and it acts
to treat a symptom, rather than cure the underlying illness. That
illness is the cost of the welfare state, and neither Democrats nor
Republicans are willing to address it,” explained Brett Bittner, the
Party’s Executive Director. “Instead, they’ve politicized the
immigration issue to the point that we can no longer have a discussion
about a solution that works for every Georgian.”

“Our main economic engines, agriculture, poultry, and manufacturing, will be
hit hardest by the proposed legislation,” Bittner says further. “They
will find themselves with an increased cost of labor and compliance, or
they will simply close up shop, because the arduous regulations are
simply too much.”

Currently, HB 87 has been placed in the House Judiciary Non-Civil Committee,
chaired by HB 87 co-sponsor Rep Rich Golick (R-Smyrna), where it is
scheduled to have a hearing this Friday, February 4, at 9:30am. Others
listed as co-sponsors include Katie Dempsey (R-Rome), Rick Austin
(R-Demorest), Stephen Allison(R-Blairsville), and Edward Lindsey
(R-Atlanta).

The Libertarian Party is Georgia’s third largest political party and the
only party in Georgia promoting fewer taxes, less government and
personal liberty for all Georgians. To learn more, please visit www.LPGeorgia.com

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Governor Cuts State Services Again in Beginning Days of the Fiscal Year

The Office of Planning and Budget is withholding four percent of funds from already stressed state agencies, and has asked agencies to propose budgets for cuts of four, six, and eight percent on top of this year's large cuts. The Georgia Budget &Policy Institute's latest report, Georgia Once Again Faces Budget Shortfall: Governor Orders Hundreds of Millions of Dollars in Additional Budget Cuts, details the financial impact of these three levels of cuts.

Georgia is in the first month of its 2011 fiscal year, yet it is already facing a potential budget shortfall of between $413 million and $613 million. This shortfall is on top of the $2.5 billion in budget cuts already implemented since pre-recessionary FY 2009. This budget gap is due to several factors:

1) the U.S. Congress has not extended the enhanced Medicaid match which would have provided Georgia $375 million;
2) the state transferred $37.7 million in Education Stabilization Recovery Act funds budgeted for FY 2011 into FY 2010; and
3) there is a projected shortfall in the State Health Benefit Plan of as much as $200 million.

The education QBE funding formula is exempt from the withholding allotment. In addition, the Department of Education has been instructed to submit a FY 2011 Amended Budget proposal with a two percent QBE budget cut.

Lawmakers had already cut the fiscal year (FY) 2011 budget by over 12 percent since FY 2009, despite a growing population, increasing infrastructure problems, and significant needs for services from those families hardest hit during the recession.

"Particularly concerning is the fact that vital state agencies that educate and protect our children, protect the health and safety of vulnerable Georgians, and plan the state's economic development have already faced crippling cuts," said Alan Essig, the Institute's executive director and author of the latest policy report.

"Most of the additional cuts can be avoided if Congress passes the enhanced Medicaid funding which our state is counting on."

Even if congress approves the enhanced Medicaid match, all Recovery Act state stabilization funds expire the end of June. According to the Georgia State University Fiscal Research Center the state of Georgia will be facing a structural deficit of between $1.8 billion and $2 billion in FY 2012.

"We have high expectations that the recently formed Tax Council will develop recommendations to solve Georgia's immediate fiscal crisis as well as fix Georgia's long-term structural deficit," said Essig. "Its decisions affect Georgia's economy and its people."

Also, read an update of an analysis by Deputy Director Sarah Beth Gehl that details tax legislation passed during the 2010 legislative session, Adding Up the Fiscal Notes 2010: Governor Vetoes Revenue Drains on Future Budgets, but Signs Bill That Reduces Low Income Tax Credit.

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Georgia's New Budget Depends on Extended Federal Help, Senate Set to Take up Legislation This Week

Georgia is among 30 states that have built their state budget assuming that enhanced Medicaid funding will be available through next June, when our budget year ends. Georgia's budget, as recently signed by the governor, includes nearly $750 million of these federal funds, also known as FMAP. "Georgia would realize only half of this amount if Congress allows the funding to expire on December 31, 2010, as scheduled," said Tim Sweeney, the Georgia Budget &Policy Institute's senior healthcare analyst.

"Thanks to the increased federal help granted as states' unemployment rose and Medicaid caseloads increased, Georgia has not made major cuts to Medicaid eligibility levels or to the reimbursement rates paid to healthcare providers serving Medicaid patients," said Sweeney. Rates already fail to cover providers' full costs.

Last week, the U.S. House of Representatives stripped the extended FMAP funds out of a bill to extend a variety of Recovery Act provisions. The Senate now has the opportunity to restore this temporary extension to stabilize the states a little longer as their economies slowly recover.

"If Congress does not extend enhanced FMAP then Georgia's new budget will be seriously out of balance when the new fiscal year starts July 1," said the Institute's executive director, Alan Essig. "But this would be just the beginning."

Georgia lawmakers are using enhanced FMAP to offset spending that would otherwise have come from state sources, as the Recovery Act intends. If, instead of finding additional state revenue, lawmakers cut the Medicaid program to save $375 million, the state would also forgo more than $650 million in federal funds that are in the state's Medicaid base budget (a total of $4.7 billion of federal funds are the base budget, not shown in the chart above).

This $1 billion loss would represent nearly a 15 percent loss to Georgia's Medicaid program. A deficit of this magnitude requires significant new revenues or devastating cuts to provider reimbursement rates, patient eligibility, covered services, or all of the above.

Although Georgia lawmakers have not indicated precise alternatives to finding revenues, budget proposals discussed in the recent legislative session indicate that across-the-board cuts to Medicaid provider reimbursement rates of at least 20 percent would be needed if lawmakers do not add new revenues.

"Cutting Medicaid reimbursement rates 20 percent likely would result in hospitals closing, many doctors and other healthcare providers denying service to Medicaid patients, and further trouble for local communities that depend on their healthcare sector for jobs," said Sweeney.

If Congress does extend FMAP temporarily, it serves the dual purpose of giving Georgia lawmakers time to put new state revenues in place as federal Medicaid funds expire next June. Extending FMAP is crucial to Georgia's ability to weather the Great Recession and avoid crippling cuts to the healthcare infrastructure of the state.

"We urge Governor Perdue to work closely with our congressional delegation to assure they extend enhanced FMAP funding, thereby protecting Georgia's healthcare sector and our citizens' health and security," said Essig. "If Congress eliminates these funds prematurely, it will hurt our healthcare sector and local economies that depend on it. Georgia is not out of the woods yet."

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President Obama Eliminates Funding for Reading Is Fundamental's Book Distribution Program Serving 4.4 Million Children Nationwide

/PRNewswire/ -- The following is a statement from Carol H. Rasco, president and CEO, of Reading Is Fundamental:

"On February 1, President Obama released his proposed FY2011 budget which eliminates the funding for Reading Is Fundamental (RIF) and its nationwide services. Without this federal funding, over 4.4 million children and families will not receive free books or reading encouragement from RIF programs at nearly 17,000 locations throughout the U.S.

"Unless Congress reinstates $25 million in funding for this program, RIF will not be able to distribute 15 million books annually to the nation's children at greatest risk for academic failure. RIF programs in schools, community centers, hospitals, military bases, and other locations serving children from low-income families, children with disabilities, homeless children, and children without adequate access to libraries. The Inexpensive Book Distribution program is authorized under the Elementary and Secondary Education Act (SEC.5451 Inexpensive Book Distribution Program for Reading Motivation) and is not funded through earmarks. It has been funded by Congress and six Administrations without interruption since 1975.

"Since its founding in 1966, RIF has played a critical role in improving literacy in this country by providing new, free books for children to keep and build home libraries. Access to books and the power of choice ignite children's hunger for knowledge and a passion for learning. In addition, research has shown that children who have more access to books not only perform better academically, but also become productive individuals whose contributions help create strong communities. On behalf of RIF and its network of over 400,000 volunteers nationwide, I urge all Americans to contact their congressional representatives and ask them to reinstate funding for this vital program."

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Pelosi Statement on Senate Passage of Pay-As-You-Go Legislation

/PRNewswire/ -- Speaker Nancy Pelosi issued the following statement today after the Senate voted to approve pay-as-you-go legislation:

"Today the Senate joined the House in taking a critical step toward ensuring fiscal discipline for the long term by passing pay-as-you-go budget rules into law.

"Strict pay-as-you-go budget rules created record surpluses in the late 1990s. And when this standard was abandoned under President Bush, it created record deficits. One of the first actions Democrats took when we assumed the majority in 2007 was to make pay-as-you-go fiscal discipline the rule of the House. Now it will be the law of the land, and our future generations will benefit. Like every American family, Congress cannot make spending commitments it cannot afford.

"As the President made clear last night, we must make tough decisions to get our fiscal house in order after a decade of failing to do so. We can strengthen our nation without undermining our future; with pay-as-you-go spending rules, we will."

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New Concord Coalition Paper Discusses 'End Game' Fiscal Considerations for Health Care Reform

/PRNewswire/ -- With the House having passed its version of health care reform (H.R. 3962) and the Senate on the verge of passing its version (H.R. 3590), the outline of a final bill is beginning to take shape. In its new Issue Brief, The Concord Coalition looks ahead at the fiscal considerations that will likely be the subject of conference committee discussions and "end game" negotiations. These include the cost of expanding coverage, the methods used to prevent that cost from adding to the deficit, and the prospects for systemic reforms to reduce cost growth over time.

This issue brief gives The Concord Coalition's perspective on how the bills measure up, what the risks are and how these risks could be lessened. We conclude that:

-- Both bills establish an important benchmark by achieving deficit
reduction according to official cost estimates by the Congressional
Budget Office (CBO). However, the fiscal outlook remains on an
unsustainable track even with the modest deficit reduction achieved
under either plan.
-- There are clear risks that some of the methods used to achieve deficit
reduction in the official scores may not hold up over the long-term.
-- The revenue package in the Senate bill holds more promise to reduce
the deficit than the House version because its largest component --
the high-cost insurance excise tax -- will better keep up with the
growth rate of health care spending, and will also work to lower
health care costs.
-- Both bills contain many promising reform strategies to achieve
long-term cost control. However, these strategies remain unproven and
cannot be counted on to produce timely, reliable savings without a
strong cost control mechanism such as the Senate's proposed
Independent Payment Advisory Board (IPAB).

The "Fiscal Risks" mentioned in the discussion include:

-- Doing Nothing
-- Spending offsets that are not maintained over time
-- "Curve benders" that don't pan out or are not adopted more broadly
-- Failure to include an effective cost control mechanism
-- Lagging revenue increases
-- General revenue bailout of the CLASS provision
-- Inadequate premium subsidies, weak penalties, and a poorly designed
exchange


In the conclusion, Concord discuss the possible changes that could be added to the legislation to lessen these risks and further promote fiscal responsibility.

To read the full issue brief, go to: http://www.concordcoalition.org/issue-briefs/2009/1223/health-care-reform-end- game-fiscal-considerations

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Boehner Statement on New Federal Deficit Projections

House Republican Leader John Boehner (R-OH) issued the following statement on the new federal deficit estimates released by the nonpartisan Congressional Budget Office (CBO) and the Obama Administration’s Office of Management & Budget (OMB):

“Today’s reports confirm what the White House has been trying to hide: the Democrats’ out-of-control spending binge is burying our children and grandchildren under a mountain of unsustainable debt. Instead of putting the brakes on Washington’s spending habits as they promised they’d do, Democrats have stepped on the accelerator and spent taxpayer dollars with reckless abandon all year, refusing to make tough choices and putting all the sacrifice on future generations. That’s not leadership; it’s negligence.

“The costly government-run health care plan put forth by President Obama and Speaker Pelosi is just the latest in a long line of expensive Democratic experiments that will add to the deficit, raise taxes on families and small businesses, and cost more American jobs. It’s time for the Administration and congressional Democrats to face the consequences of this dangerous fiscal agenda and change course.

“Republicans have proposed better solutions to curb out-of-control spending and control the debt on behalf of middle-class families, including a fiscally-responsible federal budget that includes strict annual caps on federal spending and forces Congress to live within its means on a yearly basis, something the Democratic-controlled Congress has refused to do. Republicans are ready to work in a bipartisan way to get control of our budget. For the sake of our children and grandchildren, let’s hope this Administration and the Democrats in charge of this Congress are as well.”

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Dems Ditch Obama Tax Cut, Raise Taxes on Families & Workers

On the day before Democrats celebrate the staggering level of new government spending and national debt racked up during the President's "First 100 Days," Democratic leaders will bring their jobs-killing $3.6 trillion budget to the House floor – without the middle class tax relief promised by President Obama.

The Associated Press reported today that the Democratic budget allows the President's "signature tax.....http://www.freedomproject.org/Blog/Read.aspx?GUID=17f3c73e-17d8-4b25-815a-9bdac95d9124

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FOX News Report Highlights How Democrats' Budget Reinstates the Death Tax

Everyone knows the Democrats’ budget spends too much, taxes too much, and borrows too much, but a Fox News report today highlighted a little-known aspect of their proposal. At a time when families and small businesses are struggling, the Democrats’ budget would reinstate the Death Tax, which would hurt small businesses and family farms that are already overtaxed. The GOP budget alternative, introduced by Budget Committee Ranking Republican Paul Ryan (R-WI) today, eliminates the Death Tax permanently. Full video and transcript of the report follow: .....http://republicanleader.house.gov/News/DocumentSingle.aspx?DocumentID=117103

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Boehner on the Democrats’ National Energy Tax: “The Wrong Thing to Do and the Worst Possible Time to Do It”

House Republican Leader John Boehner (R-OH) today released the following statement after House Energy & Commerce Committee Chairman Henry Waxman (D-CA) released a discussion draft of the Democrats’ national “cap-and-trade” energy tax legislation, which is similar to the plan included in the President Obama’s budget:


“The Democrats’ plan to raise energy taxes in the midst of a serious recession is the wrong thing to do and the worst possible time to do it. Families and small businesses are struggling to get by, and this proposal, like the President’s budget, would raise taxes on every American who drives a car, flips on a light switch, or buys a product manufactured in the United States. It would cost every family as much as $3,100 a year in additional energy costs, and will drive millions of good-paying American jobs overseas.

“In my district, for example, there is steel manufacturer called AK Steel. If they are forced to pay this new energy tax – while competitors in places like India, China, and Mexico are not – their costs will skyrocket, and their customers will simply buy cheaper imported steel. That’s a recipe for shipping more good-paying American manufacturing jobs overseas, and that’s simply unacceptable. Democrats should shelve this national energy tax and work with Republicans to enact policies that will truly help get our economy moving again.”

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Campaign to Sell President's Budget Has "No Noticeable Impact" as Americans Realize It Spends Too Much, Taxes Too Much, Borrows Too Much

President Obama will hold a news conference this evening, as the campaign to sell his fiscally-irresponsible budget continues. Last week, the effort kicked-off with some fanfare, as news broke that his presidential campaign apparatus would be called upon to spin his $3.6 trillion budget blueprint. However, more than a week into the “budget campaign,” it seems the Administration and its political allies are having some trouble building support for the budget with the American people – and even some Democratic Members of Congress. McClatchy News reports:

“President Barack Obama’s army of canvassers fanned out across the nation over the weekend to drum up support for his $3.55 trillion budget, but they had no noticeable impact on members of Congress, who on Monday said they were largely unaware of the effort.”

“‘News to me,’ said Rep. Lloyd Doggett, D-Texas, a House Budget Committee member, of the canvassing.”

The reason the President’s campaign seems to be spinning its wheels is because the American people are realizing his budget will harm our economy and destroy jobs by spending too much, taxing too much, and borrowing too much. Last Friday, the nonpartisan Congressional Budget Office (CBO) issued a devastating report, noting that the President’s budget is actually $2.3 trillion more costly than the White House initially claimed. And yesterday, the President doubled-down on his plan for a national energy tax, with the Administration promising that it will fight for the tax, even though it will cost families up to $3,100 more per year. In other words, the more the American people are learning about this budget, the less they like it – and Members of Congress, including many Democrats, are hearing about it.

On WKRC radio in Cincinnati this morning, House Republican Leader John Boehner (R-OH) discussed the Democrats’ nervousness over the President’s budget:

“And so, the real key is what’s going to happen here over the next couple of weeks – whether we can stop the budget proposal that he has and put enough pressure on my colleagues on the other side of the aisle to take a second look at this proposal…”

“There’s a lot of nervousness over there right now over this, and what I’ve been doing and my colleagues have been doing is helping the American people understand that his budget spends too much, it taxes too much, and it borrows too much from our kids and grandkids.” (AUDIO)

While the Administration and Democratic leaders on Capitol Hill continue their budget campaign, Republicans are prepared to offer a better budget solution – one that will help create jobs, rebuild savings, and restore fiscal sanity. In a web video released last week, Boehner outlined for the President the GOP’s principles for a better budget, including:

- Helping create and protect jobs by letting families and small businesses keep more of what they earn.

- Ensuring the federal budget doesn’t grow faster than family budgets.

- Aiming to expand access to affordable health care for every American, while preserving Social Security and Medicare for future generations.

- Ending the bailouts to protect taxpayers and reforming the financial system so this crisis never repeats itself.

- Encouraging an “all of the above” energy strategy that harnesses new technologies, encourages greater conservation and efficiency, and increases American energy production in an environmentally-safe manner – without imposing a national energy tax.

- Fighting inflation so the prices of goods and services Americans depend on every day remain stable during and after this economic crisis.

The House Budget Committee will consider the President’s budget blueprint tomorrow, and Boehner today announced that Republicans will live-blog the debate on the Republican Leader’s blog, at http://gopleader.gov/Blog. During tomorrow’s debate, Republicans will remind Democrats that the President’s budget spends too much, taxes too much, and borrows too much and will offer better solutions for improving the blueprint, strengthening the economy, and creating jobs. Will Washington Democrats give these GOP solutions the consideration they deserve?

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Sticker Shock: Washington Dems Reeling After CBO Report Shows President's Budget Is $2.3 Trillion More Costly Than White House Claimed

Washington Democrats are still reeling after the nonpartisan Congressional Budget Office (CBO) reported last Friday that the President’s budget is actually $2.3 TRILLION more costly than the White House initially claimed. Overall, the budget will produce an incredible $9.3 trillion in total deficits over the next 10 years – and who pays? Our children and grandchildren. Is it any wonder why Republicans have consistently been warning that this monstrous budget spends, taxes, and BORROWS too much? And Republicans are not alone. Economists, taxpayer watchdog groups, and newspapers across America have sounded the alarm on the Administration’s reckless budget path as well. Here’s what the Washington Post said about the President’s plan in an editorial published yesterday:

“Mr. Obama should treat the CBO report as an incentive to fulfill his repeated promises, during and after the campaign, to make hard choices on the budget. Until now he has offered a host of new spending – on health care, middle-class tax cuts, education and alternative energy – without calling for much sacrifice from anyone except the top 5 percent of the income scale. Though his emphasis on controlling health-care costs is welcome, it’s not a substitute for reforming the entitlement programs that are the drivers of long-term fiscal crisis, Medicare and Social Security. Yet the president has offered no plan for either and no road map even for achieving a plan. Several members of his own party in the Senate have been expressing doubts about his strategy, and the CBO report will lend credibility to their concerns. He should heed them.”

House Republican Leader John Boehner (R-OH) reacted similarly after the CBO rocked the Administration with its deficit report last Friday, saying, “This report should serve as the wake-up call this Administration needs. We simply cannot continue to mortgage our children and grandchildren’s future to pay for bigger and more costly government.”

Later today, the President will continue his campaign-like sales job of his budget when he will continue pressing for a massive national energy tax that’s at the heart of the proposal – a tax that will cost American families up to $3,100 per year. The Associated Press reports this morning that, “President Barack Obama’s aides say the administration will work with Congress on his budget proposal, but energy independence is not subject to wheeling and dealing.” In other words, the White House is prepared to fight for its energy tax hike.

Middle-class families and small businesses are struggling during this recession – their job security is diminished, their savings are evaporating, and their costs of living are soaring. Do they really deserve to be hit with higher energy bills – to the tune of up to $3,100 increase per year – thanks to the President’s budget?

Republicans don’t think so, and that’s why they will be offering a better budget solution in the days to come. In response to the President’s request last week for budget ideas from both parties, Boehner released a web video in which he outlined for the President the GOP principles for a better budget. The GOP budget alternative will:

- Help create and protect jobs by letting families and small businesses keep more of what they earn.

- Ensure the federal budget doesn’t grow faster than family budgets.

- Aim to expand access to affordable health care for every American, while preserving Social Security and Medicare for future generations.

- End the bailouts to protect taxpayers and reform the financial system so this crisis never repeats itself.

- Encourage an “all of the above” energy strategy that harnesses new technologies, encourages greater conservation and efficiency, and increases American energy production in an environmentally-safe manner – without imposing a national energy tax.

- Fight inflation so the prices of goods and services Americans depend on every day remain stable during and after this economic crisis.

As the House Budget Committee prepares to debate the President’s budget blueprint, it is clearer than ever that it spends too much, taxes too much, and borrows too much. House Republicans are prepared to offer a better way. Are Washington Democrats prepared to join them?

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White House Makes Correct Decision On Veterans Insurance Proposal

/PRNewswire-- "The White House made the correct decision to withdraw its proposal for the Department of Veterans Affairs to have military veterans' personal insurance companies pay for their service-connected disability and wounds," said VAdm. Norb Ryan, Jr., USN-Ret., president of the Military Officers Association of America.

Adm. Ryan said he advised President Obama that "pursuing this insurance proposal would detract from the outstanding 2010 Department of Veterans Affairs budget he has put forth -- the best budget for veterans care in 30 years and the largest annual increase proposed by any President."

Adm. Ryan and leaders from several military and veterans service organizations (MSO/VSOs) met with President Obama Monday and Chief of Staff Rahm Emanuel Monday and again Wednesday with Emanuel to voice their concerns and attempt to reach a workable solution to the Administration's payment idea. All organizations were against the initiative, and numerous Members of Congress also voiced their strenuous objections. The White House asked for the meeting after receiving a February 27 letter signed by 11 VSO and MSO leaders opposing the plan.

"The VA has a solemn obligation to care for those who have served in the military and fought for this nation," said Adm. Ryan. "We deeply appreciate that the President asked the veterans organizations to meet with him to discuss the issue and present our case."

According to Ryan, "The President indicated on Monday that he was there to listen to our concerns and was willing to drop the proposal if we could not support its merits. Both he and his Chief of Staff kept their promises by promptly withdrawing the proposal after today's meeting. To their credit, they listened and responded promptly, and we appreciate that."

"MOAA looks forward to working with the President and Secretary of Veterans Affairs Eric Shinseki to maximize the impact on this unprecedented budget that supports veterans and their families," Adm. Ryan said.

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Boehner Responds to President’s Request for Bipartisan Budget Proposals

House Republican Leader John Boehner (R-OH) today released a video responding to President Obama’s request yesterday for bipartisan budget proposals. In the video, which was transmitted to the White House this morning, Boehner respectfully informs the President that his budget spends too much, taxes too much, and borrows too much; makes clear that Republicans will offer a superior alternative, as Republicans did during the “stimulus” debate in January; and outlines the GOP principles for a better budget. A transcript of Boehner’s message to President Obama follows:

“Families and small businesses across America are hurting, and they’re counting on both parties in Washington to provide real solutions to help create jobs and end this recession. Mr. President, you’ve submitted your budget, and we appreciate you seeking input from Republicans on how it can be improved.

“As you’ll recall, our Republican Whip Eric Cantor and I personally delivered to you our Republican stimulus alternative during a White House meeting. Unfortunately, that plan was rejected by Washington Democrats, even though it would have created 6.2 million jobs according to an economic model developed by your own advisor, Dr. Christina Romer. That’s twice the jobs at half the cost of the trillion-dollar spending bill you ultimately signed into law.

“Republicans are eager to offer better solutions on the budget as well. Mr. President, with all due respect: your budget spends too much, taxes too much, and borrows too much, and that’s going to do further harm to our economy at a time when it desperately needs our help.

“We believe there’s a better way – better solutions to restore some fiscal sanity here in Washington while encouraging more job creation and more investment. Our alternative, which is being drafted as we speak by Congressman Paul Ryan of Wisconsin and others, will reflect core principles that should guide us as our nation works to emerge from this crisis stronger than ever.

“First, our budget alternative will help create and protect jobs by letting families and small businesses keep more of what they earn.

“Second, our budget will make sure the federal budget doesn’t grow faster than family budgets. Americans are making tough spending decisions every day. It’s time for Washington to do the same.

“Third, our budget will aim to expand access to affordable health care for every American, while preserving Social Security and Medicare for future generations.

“Fourth, our budget will end the bailouts to protect taxpayers and reform the financial system so this crisis never repeats itself. Instead of raising energy costs through a “cap and trade” energy tax that will cost every family up to $3,100 a year, our budget will encourage an “all of the above” energy strategy that harnesses new technologies, encourages greater conservation and efficiency, and increases American energy production in an environmentally-safe manner.

“And last but not least, our budget will fight inflation so the prices of goods and services Americans depend on every day remain stable during and after this economic crisis.

“Mr. President, we appreciate the opportunity to answer your call for bipartisan input by sharing our Republican budget solutions. Republicans are eager to offer our alternative when the debate continues in Congress later this month. It’s time for both parties in Washington to work together to tackle the challenges confronting our nation – and we shouldn’t wait a moment longer to start.”

NOTE: In remarks on the budget at the White House yesterday, President Obama said, “The answers don’t have to be partisan, and I welcome and encourage proposals and improvements from both Democrats and Republicans in the coming days.”

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RNC: 50 Days: No Golden Anniversary

/PRNewswire-USNewswire/ -- The following was released today by the Republican National Committee:

In 50 Days, Democrats Have Passed And Proposed Roughly $5 Trillion In Government Spending:

President Obama Proposed Spending Between $3.5 And $4 Trillion In His FY2010 Budget. "Obama's budget overview will call for between $3.5 trillion and $4 trillion in spending in fiscal year 2010 and creates space for up to $750 billion in additional bank bailout funds this year - money that hasn't been requested and the administration hopes will not be necessary to stabilize the still-reeling financial system." (Major Garrett, "Obama's Budget Projects $1.75 Trillion Deficit," FoxNews.com, www.foxnews.com, 2/26/09)

Last Month, President Obama Signed The $787 Billion Economic Stimulus Package. "The $787 billion stimulus bill that President Barack Obama signed Tuesday was a warm-up act, an emergency provision aimed at stimulating a moribund economy." (David Lightman and Margaret Talev, "How Much Government Spending Is Ahead? Stay Tuned," The Miami Herald, 2/20/09)

Democrats In The House Passed A $410 Billion Omnibus Spending Bill. "The U.S. House voted to boost spending on domestic programs by 8 percent, ease restrictions on travel to Cuba and kill a school voucher program in Washington, D.C., as part of a $410 billion spending bill." (Brian Faler, "House Approves $410 Billion 'Omnibus' Spending Bill," Bloomberg, 2/25/09)

President Obama Announced A $275 Billion Plan To Stave Off Foreclosures. "After a week dominated by programs that involve spending -- in addition to the stimulus package, the plan to stave off foreclosures could cost taxpayers as much as $275 billion -- Mr. Obama used his weekly radio and Internet address to chart the immediate road ahead." (Sheryl Gay Stolberg, "Obama Pledges To Seek Deficit Cuts," The New York Times, 2/21/09)

OBAMA SNUBBED THE BRITISH PRIME MINISTER

President Obama's Handling Of The British Prime Minister's Trip To The U.S. Was "Appalling":

During British Prime Minister Gordon Brown's American Trip, He Presented President Obama With A Priceless Pen Holder; Obama Reciprocated With 25 DVDs. "After Brown presented Obama with a pen holder crafted from the timbers of the 19th century British warship HMS President (whose sister ship, HMS Resolute, provided the wood for the Oval Office's desk), Obama offered up ... 25 DVDs of American movie classics." (David Saltonstall, "London Aghast At President Obama Over Gifts Given To Prime Minister Brown," [New York] Daily News, 3/7/09)

President Obama's Handling Of Brown's Visit: "Appalling." "His handling of the visit of the Prime Minister, Gordon Brown, to Washington was appalling." (Iain Martin, "President Barack Obama Dislikes Britain, But He's Keen To Meet The Queen," The [UK] Daily Telegraph's "Iain Martin" Blog, www.telegraph.co.uk, 3/6/09)

Originally, Brown Was Not Granted A Press Conference, Then One Was Thrown Together At The Last Minute. "First Brown wasn't granted a press conference with flags, then one was hastily arranged in the Oval office after the Brits had to beg. Obama looked like he would rather have been anywhere else than welcoming the British leader to his office and topped it all with his choice of present (*) for the PM." (Iain Martin, "President Barack Obama Dislikes Britain, But He's Keen To Meet The Queen," The [UK] Daily Telegraph's "Iain Martin" Blog, www.telegraph.co.uk, 3/6/09)

OBAMA HAS HAD ISSUES STAFFING HIS ADMINISTRATION

President Obama Has Had Difficulties Appointing People To Fill Top Positions In His Administration:

Seven Weeks After Inauguration, President Obama Still Has To Fill Hundreds Of Senior Level Positions In The Executive Branch. "Nearly seven weeks after taking office, President Barack Obama has a Cabinet, but hundreds of other senior-level jobs across the executive branch lack permanent occupants." (Dave Helling, "Across Nation's Capital, Vacant Offices Abound," The Kansas City Star, 3/8/09)

"But Mr. Obama Lost Four Nominees To Tax And Other Issues And The Pace Of Appointments Slowed." (Peter Baker, "Obama Team Has Billions To Spend, But Few Ready To Do It," The New York Times, 2/17/09)

Treasury Secretary Tim Geithner Failed To Pay Taxes While Working For The International Monetary Fund. "Timothy Geithner didn't pay Social Security and Medicare taxes for several years while he worked for the International Monetary Fund, and he employed an immigrant housekeeper who briefly lacked proper work papers." (Jonathan Weisman, "Geithner's Tax History Muddles Confirmation," The Wall Street Journal, 1/14/09)

Health And Human Services Secretary Nominee Tom Daschle Withdrew His Nomination After Reports That He Had Failed To Pay Taxes. "Former Sen. Tom Daschle has withdrawn his nomination to head the Department of Health and Human Services, according to a statement Tuesday from the White House. ... Daschle, the former Senate majority leader, apologized Monday for failing to pay his taxes in full. He said earlier he was 'deeply embarrassed' for a series of errors that included failing to report $15,000 in charitable donations, unreported car service and more than $80,000 in unreported income from consulting." (Ed Henry and Kristi Keck, "Daschle Withdraws As HHS Nominee," CNN, 2/3/09)

Nancy Killefer Withdrew Her Nomination For Tax Problems Dating Back To 1995. "They knew about Nancy Killefer's tax problem from 1995, yet they nominated her for a post in the office of management and budget anyway. This morning she withdrew." (Sam Donaldson, Op-Ed, "Sam On What Nominees' Withdrawal Says About Obama," ABC News, 2/3/09)

Commerce Secretary Nominee Bill Richardson Withdrew His Nomination After Reports That State Contracts In New Mexico Were Under Investigation. "First, they knew about Gov. Bill Richardson's potential problem in the New Mexico investigation into state contracts, but they nominated him to be commerce secretary anyway. Weeks later, of course, Richardson withdrew." (Sam Donaldson, Op-Ed, "Sam On What Nominees' Withdrawal Says About Obama," ABC News, 2/3/09)

During The Campaign, Obama Said Lobbyists Wouldn't Run His White House Or Work For Agencies They Used To Lobby:

During His Campaign, President Obama Promised To "Stop The Revolving Door That Lets Onetime Lobbyists Go To Work For The Federal Government." "[O]n the campaign trail, Obama vowed to stop the revolving door that lets onetime lobbyists go to work for the Federal Government and oversee contracts that could harm -- or help -- their former employer." (Mark Thompson, "Obama's Lobbyist Ban Meets A Loophole: William Lynn," Time, 1/27/09)

President Obama Signed An Executive Order Banning Lobbyists From Working For Agencies They Used To Lobby. "And one of the first things the new President did in office was seemingly make good on that promise, signing an Executive Order barring former lobbyists from joining his Administration to work at agencies they recently lobbied." (Mark Thompson, "Obama's Lobbyist Ban Meets A Loophole: William Lynn," Time, 1/27/09)

But President Obama Has Appointed Numerous Former Lobbyists:

President Obama Has Appointed At Least 21 Former Federal Registered Lobbyists, Including Agriculture Secretary Tom Vilsack. "A USA TODAY review of Obama hires shows that 21 have registered as federal lobbyists, although most have not done so within the past two years. They include White House aide Cecilia Munoz, who lobbied last year for the National Council of La Raza, and Agriculture Secretary Tom Vilsack, who lobbied in 2007 for a national teachers union." (Fredreka Schouten, "Geithner Names Ex-Lobbyist As Treasury Chief Of Staff," USA-region> Today, 1/27/09)

OBAMA HAS FAILED ON EARMARK REFORM

President Obama Promised To Slash Earmarks And Stop Wasteful Spending:

President Obama Pledged To "Slash Earmarks." "Slash Earmarks: ... In the past two years, the Democratic Congress has cut earmarks nearly in half, to $17.2 billion in 2008. Obama and Biden are committed to returning earmarks to less than $7.8 billion a year." (Obama For America, Blueprint For Change, www.barackobama.com, p. 20, Accessed 2/19/09)

During The Campaign, President Obama Pledged To "Go Line By Line" And "Eliminate Programs That Don't Work." Obama: "I want to go line by line through every item in the federal budget and eliminate programs that don't work, and make sure that those that do work work better and cheaper." (Sen. Barack Obama, NBC Presidential Debate, Nashville, TN, 10/7/08)

-- Obama: "Earmarks account for 0.5 percent of the total federal budget.
There's no doubt that the system needs reform and there are a lot of
screwy things that we end up spending money on, and they need to be
eliminated. But it's not going to solve the problem." (Sen. Barack
Obama, CNN Presidential Debate, Hofstra University, New York,
10/15/08)


But President Obama Signed An Economic Stimulus Package Full Of Wasteful Spending And Democrats Are Pushing A $410 Omnibus With More Than $7 Billion In Earmarks:

Despite Promises, The Stimulus Is Not Free Of Money For Special Interests. "The compromise stimulus bill adopted by House and Senate negotiators this week is not free of spending that benefits specific communities, industries or groups, despite vows by President Obama that the legislation would be kept clear of pet projects, according to lawmakers, legislative aides and anti-tax groups." (Dan Eggen and Ellen Nakashima, "Despite Pledges, Package Has Some Pork," The Washington Post, 2/13/09)

The Senate Is Working On The $410 Billion Omnibus Spending Bill That Contains 8,750 Earmarks Worth $7.7 Billion. "The Senate is getting ready to pass a giant spending bill stuffed with congressional pet projects that critics decry as unnecessary pork. ... They point to stiff resistance from Democratic leaders and Obama's reluctance to veto the pending $410 billion legislation as signs that business will continue as usual. The 8,570 earmarks in the bill represent $7.7 billion, according to the nonpartisan group Taxpayers for Common Sense." (Dan Nowicki, "Earmark-Laden Bill A Line In The Sand For Pork-Barrel Politics," The Arizona Republic, 3/6/09)

DEMOCRATS HAVE FAILED TO BRING BIPARTISANSHIP TO WASHINGTON

President Obama Said Political Opponents Should Work Together Instead Of Demonize Each Other:

Obama Derided Partisan Politics And Said Political Opponents Should Come Together To Solve Problems. "A politics that says it's ok to demonize your political opponents when we should be coming together to solve problems." (Sen. Barack Obama, Response To The State Of The Union, 1/28/08)

"Obama Has Said He Plans To Work With Republicans To Cut Through Partisan Gridlock That Often Blocks Legislative Progress."(Sabrina Eaton, "Ohioan An Early Obama Critic," [Cleveland] Plain Dealer, 1/29/09)

But In President Obama's Washington, Democrats Have Hardly Come Together With Republicans:

Speaker Nancy Pelosi (D-CA): We Won The Election, We Wrote The Bill. "Speaker Nancy Pelosi (D-Calif.) parried GOP assaults on Democrats' $825 billion stimulus package Thursday and refused to slow the bill down to give more time for Republican input. 'Yes, we wrote the bill. Yes we won the election, but that doesn't mean we don't want sustainability or Republican support,' Pelosi said." (Steven T. Dennis, "Pelosi Defends Democrats' Vetting Of Stimulus Plan," Roll Call, 1/22/09)

Democrats Rolled Over House Republicans And "Yielded No More Than Necessary" In The Senate To Pass The Stimulus Package. "In the case of the stimulus bill, Democrats used their solid majority to roll over House Republicans and yielded no more than necessary to garner three critical GOP votes in the Senate." (Janet Hook, "Bipartisanship Faces Stiff Test," Chicago Tribune, 2/16/09)

For President Obama, "Urgency Trumps Bipartisanship." "But with the economy in crisis and the stimulus his top priority, [President Obama] also made clear that urgency trumps bipartisanship." (Todd J. Gillman, "Selling The Stimulus Bill President Discovering That Bipartisanship Has Its Limits," The Dallas Morning News, 2/10/09)

THE ADMINISTRATION HAS FAILED ON TRANSPARENCY

President Obama Pledged Transparency And Openness Before Signing Legislation:

During The Campaign, President Obama Promised To Give The American Public 5 Days To Review Legislation Before Signing Any Bill. "Sunlight Before Signing: Too often bills are rushed through Congress and to the president before the public has the opportunity to review them. As president, Obama will not sign any non-emergency bill without giving the American public an opportunity to review and comment on the White House website for five days." (Obama For America Website, www.barackobama.com, Accessed 2/19/09)

But The Obama Administration Has Failed To Allow The Public 5 Days To Review Legislation It Has Signed:

According To The Nonpartisan PolitiFact, President Obama Did Not Provide 5 Days Before Signing His First Bill, The Lilly Ledbetter Fair Pay Act. "But the first bill Obama signed into law as president -- the Lilly Ledbetter Fair Pay Act -- got no such vetting. In fact, the Congressional Record shows that the law was passed in the Senate on Jan. 22, 2009, passed in the House on Jan. 27, and signed by the president on Jan. 29. So only two days passed between the bill's final passage and the signing." (Angie Drobnic Holan, "Obama Signs First Law Without Web Comment," St. Petersburg Times' "PolitiFact," www.politifact.com, 1/29/09)

President Obama's Second Bill Signing Occurred Hours After Passed By Congress. "For his second bill, Obama signed an expansion of the State Children's Health Insurance Program, which provides health coverage for low-income children. He signed it on Feb. 4, 2009, just hours after it was finalized in Congress." (Angie Drobnic Holan, "Still No 'Sunlight Before Signing,'" St. Petersburg Times' "PolitiFact," www.politifact.com, 2/4/09)

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RNC: Tax and Spend Fever

/PRNewswire-USNewswire/ -- The following was released today by the Republican National Committee:

Today, President Obama Will Host A Health Care Summit:

Today, President Obama Will Host A Summit On Health Care Issues. "On Thursday, Mr. Obama will host a summit on health-care issues where a variety of stakeholders will come together with members of Congress." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)

EVEN MORE SPENDING? HIGHER TAXES?

President Obama's Health Care Plan Could Cost More Than $1 Trillion:


Estimates Place The Cost Of President Obama's Health Care Plan At Over $1 Trillion Over The Next Decade. "Estimates put the full cost of Mr. Obama's health plan at more than $1 trillion over 10 years." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)

The President Has Been Vague About Funding His Health Care Plan:

President Obama Has Been Vague On How His Health Care Plan Would Be Financed. "Mr. Obama has been vague about how the country's future health-care system should be structured, but he was detailed last week about how to pay for it. He proposed raising $634 billion over 10 years through tax increases on the wealthy and cuts to existing government health-care spending." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)

In The Past, Obama Proposed Funding Health Care Reforms By Repealing The Bush Tax Cuts:

Originally, President Obama Said He Would Finance His Health Care Plans By Rolling Back The Bush Tax Cuts. "On his Presidential Transition website, President Obama said he would 'pay for his $50 - $65 billion health care reform effort by rolling back the Bush tax cuts for Americans earning more than $250,000 per year and retaining the estate tax at its 2009 level.'" (Jake Tapper, "Read His Lips: New Taxes," ABC News' "Political Punch" Blog, www.abcnews.com, 2/26/09)

But Instead, Democrats Have Already Announced Plans For Billions In New Taxes To Fund Health Care:

President Obama Still Plans On Ending The Bush Tax Cuts; But Instead Of Using Them To Fund Health Care, He Proposed A New Tax. "But as we learned yesterday afternoon, though the President is certainly planning on raising taxes on the wealthiest Americans by allowing the Bush tax cuts to expire next year -- making the top rate jump from 35% to 39.6% -- the President plans on partially funding the Health Care Reserve fund by raising another, new tax on those families making $250,000 a year, specifically from reducing the itemized deduction rate for families with incomes over $250,000, limiting it to 28 percent." (Jake Tapper, "Read His Lips: New Taxes," ABC News' "Political Punch" Blog, www.abcnews.com, 2/26/09)

President Obama Proposed A $634 Billion Reserve Fund For Health Care, That Experts Believe Will Cost At Least $1 Trillion. "President Obama is proposing to begin a vast expansion of the U.S. health-care system by creating a $634 billion reserve fund over the next decade, launching an overhaul that most experts project will ultimately cost at least $1 trillion. The 'reserve fund' in the budget proposal being released today is Obama's attempt to demonstrate how the country could extend health insurance to millions more Americans and at the same time begin to control escalating medical bills that threaten the solvency of families, businesses and the government." (Ceci Connolly, "Obama Proposes $634 Billion Fund For Health Care," The Washington Post, 2/26/09)

Democrats Plan To Pay For The Reserve Fund By Capping Tax Deductions, Amounting In A Tax Increase Of More Than $300 Billion. "About half the money for the new fund would come by capping itemized tax deductions for Americans in the top income bracket. The proposal, which administration officials characterize as a 'shared-responsibility issue,' would reduce the value of tax deductions for families earning more than $250,000 by about 20 percent, according to administration documents." (Ceci Connolly, "Obama Proposes $634 Billion Fund For Health Care," The Washington Post, 2/26/09)

Does The Obama Administration Plan On Using An Employer Tax Exclusion To Help Fund Health Care?

There Is Speculation That Democrats Will Propose An Employer Tax Exclusion To Help Fund The Health Care Proposals. "The administration, as John Cohn says, means to leave the rest of the financing question to Congress. But according to both members of Congress and the administration, that ambiguity obscures a specific solution under examination: The employer tax exclusion." (Ezra Klein, "What Obama's Budget Does -- And Doesn't - Say," The American Prospect's "Ezra Klein" Blog, www.prospect.org, 2/22/09)

-- This Is The Same Idea That The Obama Campaign "Brutalized" McCain For
Suggesting. "This is a particularly tricky policy for the Obama
administration to propose because they brutalized John McCain for
suggesting much the same thing. McCain, they said, was planning to tax
employer health care benefits for the first time in history." (Ezra
Klein, "What Obama's Budget Does -- And Doesn't - Say," The American
Prospect's "Ezra Klein" Blog, www.prospect.org, 2/22/09)

Even Other Democrats Are Beginning To Question The Amount Of Debt That President Obama's Health Care Plans Would Bring:

Rep. Jim Marshall (D-GA) Suggested Avoiding More Debt Was More Important Right Now Than Providing Universal Health Care. "One Blue Dog Democrat in the House made clear today that he is unlikely to support President Obama's health care reform plans unless it is revenue neutral and does not add long-term debt to the nation's balance sheet. In an appearance on ABC News Now's 'Politics Live,' Rep. Jim Marshall, D-Ga. ... suggested that avoiding additional debt is a greater priority for the country's economic health than providing universal health care coverage for all Americans." (David Chalian, "Blue Dog To Obama: Health Care Shouldn't Increase Debt," ABC News' "The Note" Blog, www.abcnews.com, 3/2/09)

-- Rep. Marshall: "Increasing Spending Without Coming Up With Revenue
That Matches That Spending Or Cutting Spending Some Place Else Is Just
Not The Direction That We Need To Head In." Marshall: "Frankly all of
us would like to see more Americans have access to health care and
there will be a lot of different arguments concerning the appropriate
plan, but I think there's a larger issue on the table now and I think
the President has a real opportunity to show some leadership with
regard to that issue, and it's the long-term fact that our budget just
isn't sustainable ... Increasing spending without coming up with
revenue that matches that spending or cutting spending some place else
is just not the direction that we need to head in. We've been doing
that too long now. We're addicted to debt, w e ran up debt
unbelievably during the Bush administration years, and I hope the
administration will show some real leadership and head this country
towards a sustainable course in the long run." (David Chalian, "Blue
Dog To Obama: Health Care Shouldn't Increase Debt," ABC News' "The
Note" Blog, www.abcnews.com, 3/2/09)

Democrats Have Already Passed And Proposed Trillions Since President Obama Was Sworn In:

President Obama Proposed Spending Between $3.5 And $4 Trillion In His FY2010 Budget. "Obama's budget overview will call for between $3.5 trillion and $4 trillion in spending in fiscal year 2010 and creates space for up to $750 billion in additional bank bailout funds this year - money that hasn't been requested and the administration hopes will not be necessary to stabilize the still-reeling financial system." (Major Garrett, "Obama's Budget Projects $1.75 Trillion Deficit," FoxNews.com, www.foxnews.com, 2/26/09)

Last Month, President Obama Signed The $787 Billion Economic Stimulus Package. "The $787 billion stimulus bill that President Barack Obama signed Tuesday was a warm-up act, an emergency provision aimed at stimulating a moribund economy." (David Lightman and Margaret Talev, "How Much Government Spending Is Ahead? Stay Tuned," The Miami Herald, 2/20/09)

Last Week, Democrats In The House Passed A $410 Billion Omnibus Spending Bill. "The U.S. House voted to boost spending on domestic programs by 8 percent, ease restrictions on travel to Cuba and kill a school voucher program in Washington, D.C., as part of a $410 billion spending bill." (Brian Faler, "House Approves $410 Billion 'Omnibus' Spending Bill," Bloomberg, 2/25/09)

President Obama Announced A $275 Billion Plan To Stave Off Foreclosures. "After a week dominated by programs that involve spending -- in addition to the stimulus package, the plan to stave off foreclosures could cost taxpayers as much as $275 billion -- Mr. Obama used his weekly radio and Internet address to chart the immediate road ahead." (Sheryl Gay Stolberg, "Obama Pledges To Seek Deficit Cuts," The New York Times, 2/21/09)

WILL A HEALTH CARE PROPOSAL INCLUDE CAMPAIGN PROMISES?

During The Campaign, Obama Proposed An Employer Mandate And Government-Organized Marketplace For Health Insurance:

Obama Proposed A "Government-Organized Marketplace" For Health Insurance. "During his presidential campaign, Mr. Obama proposed a system in which people could buy insurance through a government-organized marketplace, where private plans and a new government-run plan would compete." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)

Obama Proposed Forcing Businesses To Cover Their Employees Or Pay Into A Fund. "During his campaign, Mr. Obama proposed that large businesses be required to offer coverage or pay into a fund, while small businesses that offer coverage would get a tax credit." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)

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Taxpayer Tea Parties: Americans Speak Out Against Washington Democrats' Tax-and-Spend Agenda

Congress returns to session today, and Democrats are again prepared to ask middle-class families and small businesses to bankroll a huge slate of new government spending in Washington. Tomorrow, the House is scheduled to vote on legislation asking the 90-some percent of responsible homeowners to come to the rescue of speculators, scam artists, and those who knowingly made bad decisions in yet another housing bailout bill. And this week, some Washington Democrats will continue efforts to defend the Administration’s $3.5 trillion budget – a blueprint that a senior Democratic aide admitted in yesterday’s Washington Post was “a tax-and-spend budget the likes of which we haven't seen in years.....
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