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Home » Santa Clarita News » McKeon: The President’s Budget Is Generational Theft

McKeon: The President’s Budget Is Generational Theft

The following is Congressman McKeon’s response to the budget, and his reasons for supporting a republican alternative budget presented by Rep. Paul Ryan. All data provided by Congressman McKeon’s office.

“Californians – and Americans across the country – should be paying attention to what happened tonight in Washington.  Democrats just passed through the House the President’s budget, which amasses $5 trillion of debt in five short years – the same amount it took 43 presidents 232 years to do before this.  Over the next ten years under the Democrats’ budget, my constituents can expect to contribute to at least $1.2 trillion in tax increases over the next ten years.  The President’s budget spends too much, taxes too much, and borrows too much and is essentially generational theft.”

{mosimage}”Conversely, the Republican Budget Alternative aims to put America back on the path to prosperity by bringing the country’s debt under control, borrowing $3.6 trillion less than President Obama’s budget over ten years.  Additionally, the GOP plan does not raise taxes and creates $2.1 million more jobs than the Democrats’ budget.”

To view video of McKeon’s response, click here

–          For information on the Republican Budget Alternative, click here.

–          For a breakdown of the Democrats’ budget, click here.

–          For a chart outlining the soon-to-be-imposed deficit through 2019, click here.

–          For a chart illustrating debt under the Democrat budget, click here.

(Courtesy of the Committee on the Budget, Republican Caucus)

Issue

Obama/Democratic Budget

House Republican Budget

Deficit

Deficit – $1.8 trillion in 2009; $9.3 trillion over 10 years.

– Deficit equals 5.7 percent of GDP by

2019.

– $1.7 trillion in 2009 ($100 billion lower than the President).

– Deficits are $3.3 trillion lower for the 10-year period.

– Deficits fall below 3.0 percent of GDP over the 10-year period.

Debt

– Doubles the debt in just over 5 years; triples in just over 10 years

– Debt equals $17.3 trillion by 2019, or 82.4 percent of GDP.

– Borrows $3.6 trillion less, resulting in a 65.1-percent debt-to-GDP ratio.

Total

Spending

– Spending nearly doubles, rising from $2.983 trillion in 2008 to $5.1 trillion in 2019.

– Spending rises to 24.5 percent of GDP by 2019, 4 percentage points higher than the historical average.

– Spends $4.8 trillion less than the President over 10 years (through 2019).

– Spending falls to 20.7 percent of GDP, about the historical average.

Discretionary

Spending

– Increases total discretionary spending by 6.5 percent in 2010.

– Increases nondefense spending by 9 percent in 2010.

– In contrast, family income increases by 1.3 percent this year and inflation is projected to be 1.2 percent in 2010.

– Freezes nondefense (excluding veterans) in 2010-14, then allows moderate increases through 2019.

Entitlement

Spending

– Increases by $1.4 trillion over 10 years.

– Slows the average annual growth in mandatory spending from 5.3 percent to 3.9 percent.

Long Term

– Increases Medicare’s unfunded liabilities from $36 trillion to $50 trillion.

– Does nothing to address insolvency of

Medicare and Social Security.

– Spending, deficits, and debt begin to spiral out of control by 2030 and eventually drag down the U.S. economy by 2060.

– Debt exceeds 100 percent of GDP in

2030.

– Begins reforms to ensure the Federal Government can meet the mission of health and retirement security.

– Gains control of debt, which never exceeds 75 percent of GDP over the next 75 years.

– Extends the American legacy of leaving the next generation better off.

Taxes

– Increases taxes by $1.5 trillion, including taxes on investors, small business, and energy.

– Provides tax incentives to use private capital, not taxpayer dollars, to unlock credit markets and encourage private sector investment and job growth.

– Suspends capital gains tax through 2010.

– Reduces corporate tax rate from second highest in the industrialized world to 25 percent.

– Produces 2.1 million more jobs than the President in the fifth year of the budget.

Energy

– Imposes a national energy tax through a cap-and-trade proposal that will cost the average family $1,600 annually.

– Reduces U.S. dependence on Foreign oil by opening domestic resources to environmentally sound exploration and development, and encourages the development of carbon-free nuclear energy.

Veterans

– Increases Department of Defense

funding by 3.9 percent in 2010, and

Veterans by 10.25 percent.

– Increases the President’s request for defense by $5 billion; reserves $50 billion placeholder for unmet needs in DoD.

– Fully funds the House-reported level for the VA ($540-million increase over the President).

For additional background information on the budget and McKeon’s views, please visit www.mckeon.house.gov.

McKeon: The President’s Budget Is Generational Theft

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