Heritage Foundation Leadership for America

House Tax Extenders Bill Is Bad for Business and the Economy

The tax extenders legislation that passed the House 257–166 on September 26 has significant problems. The tax cuts and increased spending in the bill are being offset by tax increases on businesses. There are also hidden costs in the bill that will likely increase deficits in future years. Elements of the bill that raise taxes, increase the deficit, or complicate the tax code should be eliminated.

New CBO Budget Baseline Shows Entitlements Driving Budget Deficits Higher

The Congressional Budget Office’s new 10-year baseline shows steep Social Security, Medicare, and Medicaid spending costs driving the budget deficit upwards.The best way to get the budget under control is by reforming these three entitlement programs and bringing down their 7 percent projected annual growth.

Ten Myths About Budget Deficits and Debt

The Bush tax cuts did not cause the budget deficit because the budget would have still fallen into deficit due to national security, runaway spending, and economic factors. The national debt is not large enough to raise interest rates. Lawmakers should be more concerned for the $42.9 trillion in unfunded Medicare and Social Security costs over the next 75 years.

CBO's Social Security Projections Differ from Trustees - but We're Still in Trouble

Given the uncertainty involved in long-term economic projections, the fact that CBO and Trustees estimates of the year of deficits and insolvency are actually fairly close together leaves little room to doubt the fact that Social Security is in trouble. Even under CBO’s rosier scenario, the benefit cuts or tax increases that would be necessary to balance the system would be severe. No matter what set of assumptions is used, it is clear that the next Congress and the next president must take the need for reform seriously.

Medicare's Financial Woes: Bigger Than Official Estimates

Medicare is financially unsustainable in its current form. The Medicare Trustees’ 2008 estimate of the program’s total excess costs is $85.6 trillion. The Trustees acknowledge an important, flawed assumption used in developing their estimate of excess costs. If corrected, Medicare’s excess costs would increase, underscoring the need to reform Medicare quickly and substantially.

Obama to CBO Revenue Baseline: Nuts—and He's Right!

Perhaps to his own surprise, Barack Obama has apparently joined forces with conservatives to correct the CBO revenue baseline. Maybe this also demonstrates that Washington is ready to have an honest debate about tax and spending policy.

No Taxpayer Bailout for the Earmarked Highway  Bill

With the highway trust fund expected to be empty when the current highway legislation expires next year, the current spending gap should be filled by cutting spending, not raising taxes.

Don't Bail Out the States: Spendthrifts Made Own Mess

New York's Gov. Paterson was in Washington yesterday, testifying before Congress on why Washington should send him some help. Indeed, state governments from New York to California are begging Washington to bail them out of a combined $48 billion budget shortfall estimated for 2009. And the Democratic leaders of Congress are reportedly considering including a state bailout in the $300 billion economic–stimulus package now scheduled for debate after Election Day.

Middle-Class Tax Cuts Could Disappear.  Again.

Campaign promises often wilt after the election. Tax-cut promises are a frequent casualty.

The Best Red Tape Your Tax Money Can Buy

As the financial turmoil has worsened, many politicians have resorted to mutual recrimination in a “blame your opponent” exercise over who was responsible for the debacle. As the process drags on, the recrimination of choice has become whether you ever were, or ever have been, in favor of deregulation, and Republicans seem to be getting much of the blame.

Help ACORN Mess with Votes Act

In 2002, the federal government enacted the Help America Vote Act. The law, designed to prevent election fraud, set standards for voter eligibility, and its importance is obvious given the recent ACORN vote-fraud scandal. But thanks to a Supreme Court order issued Friday, Ohio’s Democratic secretary of state, Jennifer Brunner, doesn’t have to follow it.

Plumbing the Candidates' Tax Plans

Joe the plumber is on to something: If a President McCain had his way, Americans could expect to keep their tax cuts. They'd also see their household income grow more, along with jobs and the economy, than would be the case under a President Obama.

Deflate balloon of entitlements

The Wall Street meltdown has sent shock waves through the economy. But it's nothing compared to what's coming if Washington fails to address - properly and soon - its unfunded obligations for Medicare, Social Security and other federal entitlement programs.

False Alarm: What's really behind the drop in welfare office voter registrations

Some people just refuse to accept good news.

Global perspectives

It has been no secret that the diplomatic and financial institutions of the 20th century are ill-suited for the needs of the 21st century. The world of Bretton Woods, and of post-World War II dominance by the West, is changing - only no one could have suspected that it would change as precipitously as the current financial-markets crisis indicates. The question before us is whether this change is permanent and inevitable. If it is the entire global landscape will be affected.