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Washington Myths

Recorded on July 12, 2011

From The Heritage Foundation, I'm Ernest Istook.

Let's look at Washington myths:

The U.S. Doesn't have to default on its debts even if Congress doesn't agree to borrow more. Annual interest payments are just over $200-billion a year, but the government's income is over $2-trillion. So there's plenty of money to pay interest and roll over the principal on the national debt. The real problem is that there's an additional $1.4-trillion in annual deficit spending.

And how about tax hikes? Higher taxes were already set in motion as part of Obamacare, and most of them start in 2013. Almost a 4% tax hike on what the wealthy pay for Medicare; new taxes on medical devices; taxes on many health care insurance plans; taxes on many drugs, and even on real estate transactions. We already have big tax hikes scheduled, and they're already killing jobs. Why does President Obama think we need more?

From The Heritage Foundation, I'm Ernest Istook.