June 30, 2009

June 30, 2009 | Factsheet on Federal Spending

Tea Party Talking Points: Obama's War on the American Dream

Big Government Getting Bigger

  • Spending, Spending, Spending: President Obama spent nearly $800 billion on the stimulus bill and then proposed a budget that would increase spending by another $1 trillion over the next 10 years. Spending in 2009 has increased 25%, which is the largest non-war government expansion since the New Deal.
  • Creating or Saving Jobs?The President set a benchmark of a 138.6 million jobs in the U.S. economy by the end of 2010. He is currently 6.4 million jobs short. Yet with rising unemployment, the White House continues to take credit for jobs "saved" without any empirical evidence to suggest this is true. The stimulus bill did create jobs in one sector--the government--by nearly doubling the size of several federal agencies and creating a huge bureaucracy.
  • Obama Plan DebtA Second Stimulus? The President stated that the stimulus would start helping the economy within months if not weeks of passage, but his advisors are now saying the real effect won't take place until later this year, maybe. Meanwhile, the White House is now openly considering a second stimulus spending bill. The first stimulus already dumped $9,400 of debt into every American's lap. Why double down?

American Families Paying More, Choosing Less

  • The Public Health Care Plan: Independent analysis projects that as many as 119 million Americans could lose the coverage they have today if a government plan is introduced. Employers would be incentivized to drop private coverage, regardless of individual preferences in the matter. The end result would be bureaucrats and politicians, not families, controlling health care choices and decisions. Even the White House says the President's rhetoric shouldn't be taken "literally" when he promises you won't lose your current plan.
  • An Economy Killing Energy Tax: The U.S. House of Representatives narrowly passed the Waxman-Markey cap and trade bill in June, which will kill millions of jobs, cost American families over $3,000 a year, cause electricity rates to "skyrocket" according the President, cause gas and heating oil prices to rise, outsource jobs to China and India, hurt senior citizens and the poor the worst, and be highly susceptible to fraud and corruption--all without making any substantive impact on the environment.

Better Priorities for America

  • Health Care Reform: Instead of introducing a massive government-run health care plan, Congress should consider alternatives that give families control of their health care by making insurance plans portable, reform the tax system to allow the same tax incentives for all insurance purchasers, and deliver real competition through innovative state-based solutions.
  • Budget Reform: Instead of higher taxes and a second stimulus, President Obama should embrace real tax and entitlement reform by lowering business taxes, permanently repealing the Alternative Minimum Tax, reducing individual tax rates, and introducing serious Medicare, Medicaid, and Social Security reform so future generations aren't buried in excessive debt.
  • Our Nation's Defense: The world remains a dangerous place, populated with rogue states and terrorist organizations that pose an imminent threat to our nation. Instead of cutting defense spending, the Administration should restore missile defense funding and maintain a minimum defense budget of 4% of GDP for the next 10 years, not including war funding.

For more information, please visit: http://blog.heritage.org.

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