Tea Party Talking Points: Don't Borrow, Spend, and Tax Away Our Future
The President's Plan
- Blames Bush: President Obama correctly points out that
he inherited a projected $1.2 trillion deficit in 2009 from
President Bush and a Democratic Congress. However, his budget adds
an additional $659 billion to that deficit, pushing it above $1.8
trillion. Although Obama has pledged to reduce the budget deficit
to approximately $600 billion by 2012, that would still be $150
billion above pre-recession levels. Quadrupling the deficit and
then cutting it in half is not "change."
- Increases Spending, Again: After an $800 billion
stimulus bill, the Obama budget increases spending by $1 trillion
over 10 years, includes an additional $250 billion placeholder for
another bailout, and calls for a Pay-As-You-Go (PAYGO) law while
astonishingly violating that rule by $3.4 trillion.
Expands Government: The 25% spending increase in the
Obama budget represents the largest non-war government expansion
since the New Deal.
- Leaves Deficits: The Obama budget leaves permanent
deficits averaging $600 billion even after the economy recovers and
doubles the publicly held national debt to over $15 trillion ($12.5
trillion in 2009 dollars).
- Cuts Defense: The Obama budget fails to fully fund the
core defense needs of the United States. About $30 billion more is
needed in the base defense budget.
- Puts Government in Charge: The $634 billion for health
care reform in the Obama budget is only a "down payment" on an
eventual government-run system. Experts believe the actual cost
could reach $1.6 trillion over 10 years. This is in addition to the
trillions already spent on health care this year in the stimulus
and SCHIP bills.
Taxes, Taxes, Taxes
- Energy Taxes: The Obama budget proposes a $646 billion
cap-and-trade tax that White House officials admit could actually
generate $1.9 trillion in tax revenue over eight years. This tax
would cost each American household between $650 and $2,000 annually
in new energy costs, even though President Obama promised that
"electricity rates would necessarily skyrocket" under this
cap-and-trade program (January 2008).
- Oil and Gas Taxes: The Obama budget would collect $31
billion in new oil and gas tax revenue. These industries are
already taxed above the industrial average, and increasing the
burden would be detrimental to increasing or even maintaining
- Death Taxes: The estate tax is set to expire in 2010,
but the Obama budget and liberals in Congress are proposing keeping
it between 35% and 45%.
- Tobacco Taxes: The largest tobacco tax in history is
three times as likely to affect low-income Americans, who are more
likely to smoke, as it is to affect high-income Americans.
There Are Alternatives
- Lower Taxes: Senator Jim DeMint's "American Option"
offered during the stimulus debate would have reduced business
taxes from 35% to 25% to spur rapid growth in wages, jobs, and
business incomes. It also would have permanently repealed the
Alternative Minimum Tax and reduced the individual tax rate to
three levels--10%, 15%, and 25%--giving Americans more of their own
money to fuel the economy and increasing disposable income for the
average family of four by up to $4,500 by 2013.
For more information, please