The real consequences of budget proposals

Monday, March 23, 2009

There is no doubt our nation faces some very difficult challenges, and restoring our nation's fiscal health must be a top priority as we move forward. Over the next two weeks, you will hear a lot about the details of a federal government budget proposal from Congress. I strongly believe that for our economy to regain its strength, we must keep taxes low and pull back on spending that is paid for with an unprecedented amount of borrowed money. Unfortunately, the budget proposals I have seen so far do quite the opposite.

Last week, the non-partisan Congressional Budget Office evaluated the budget proposal from the President. I must tell you, the details are very concerning. It is estimated that this budget would increase taxes by a record $1.9 trillion dollars. This means just about every family, small businesses, farm and ranch in our state and across the country would face a tax increase.

Specifically, this includes a 13 percent tax hike on many small and medium-sized businesses that will file a tax return as an individual. These same businesses employ two-thirds of the nation's work force and create 74 percent of all new private sector jobs across the country. The budget proposal also includes an energy tax with a price tag for families of up to $3,100 per year according to a study done by experts at the Massachusetts Institute of Technology. This energy tax would be the result of enacting what is still a very vague proposal for cap-and-trade legislation.

While the President has said the increased energy costs for families would be covered by the "Making Work Pay" tax credit included in his budget, families would only see $800 a year in savings. That means families still face $2,300 a year in new taxes, money that could be used to buy eight months of groceries or pay three months of a mortgage on a $100,000 loan.

Even with all of those proposed tax increases, the Congressional Budget Office highlights that the President's budget would still require us to borrow trillions of dollars to cover the bills. It is estimated there will be a record $3.6 trillion in spending next year. Additionally, over the next 10 years, spending would continue to grow out of control reaching a budget deficit of $9.3 trillion. This would also triple the public debt from its current levels ten years from now. That is just a staggering number and will severely hamper efforts to stabilize and grow our economy.

Enacting proposals that will likely result in further job losses, increased expenses for families and record debt is exactly the wrong course of action for our country. I want you to know I stand ready to work with my Colleagues on alternatives that will instead keep taxes low, protect every job possible and put our country on a road to a balanced budget.

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  • How can we possibly be having money problems? Didn't the Fed give us permission to print a Trillion dollars, yesterday. Why, shucks, all we have to do is print ten trillion dollars, real fast, and pay off the National debt, and be in financial bliss.

    I am sorry, but I keep hearing about all these savings that everyone is supposed to be enjoying, but my dollar saved seems to be costing me three dollars in purchase power. My vacuum chamber, though almost empty, tells me that having a 'savings,' and being able to buy less, is not a good thing. It tells me that no matter who the government charges for all these things it is giving us, the final price tag ends up on my table, and costs me far more than the benefit I just received, whether I wanted it or not, needed it or not, accepted it or not.

    Bankrupt, is bankrupt, is bankrupt. We are almost bankrupt, and we are doubling or spending? Someone is crazy, and it must be me.

    Disrespectfully submitted. Arley Steinhour

    -- Posted by Navyblue on Mon, Mar 23, 2009, at 5:36 PM
  • With this DubYah and Shotgun Dickie created DEPRESSION -- the Gross National Product has declined untold trillions of dollars annually.

    Every year that situation continues -- the federal treasury losses several trillion in tax revenue.

    This crisis has resulted from nonexistence of CONSUMER CREDIT.

    The housing industry and the auto industry are frozen because buyers cannot secure credit.

    The moves by the current administration is to restore the availaility of credit -- WITH RESPONSIBLE CONDUCT FROM BANKS AND CITIZENS.

    Most of the problem begins and ends with a surplus of EGO-CENTRIC, SELF-SERVING WALL STREET, NATIONAL BANKING AND INSURANCE "COMMISSION MEN."

    Mortgage loan officers throughout the country were falsifying applications for home loan customers, in order to collect high commissions.

    Some Mortgage Loan officers realized decades of nomral income in two or three years from 2000 to 2007.

    These clowns walked away with large personal fortunes essentially stolen from all of us.

    They were able to do it because some politicians believed in extreme deregulation.

    Basically, they hired "Brer Fox" as Chicken Coop security chief.

    Guess what -- IT DID NOT WORK.

    It turned out about line the 1950s, when Nebraska wheat growers were storing their hard red milling wheat in McCook Air Base hangars and the big milling companies were hauling in "equivalent bushel" loads of sorry southern plains wheat, dumping in another sectionof hangar -- loading up good Nebraska Milling Wheat worth about four times more -- and driving off.

    That came from hiring executives fromt he major milling companies to run the USDA grain programs.

    They stole millions of dollars of Nebraska wheat, legally, until they were caught in the act in December, 1957.

    With the year, Nebraska Wheat Growers opened a sales office in Brussels, Belguim.

    -- Posted by bigsurmac on Mon, Mar 23, 2009, at 5:58 PM
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