The real consequences of budget proposals
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.