The Hill Report
A Weekly Newsletter from Congressman Pete Sessions
Week of March 3 - March 7, 2008
This week in Washington, the House Budget Committee passed the fiscal year 2009 federal budget, outlining a framework for how your tax dollars will be spent next year. Unfortunately for American families and businesses, the budget proposal that House Democrats pushed through this week represents a fiscal roadmap to ruin, calling for the same failed tax-and-spend policies that have already increased the federal deficit and threatened our nation’s economy.
In an effort to satisfy their insatiable appetite for more government spending, the Democrat Majority Party plans to increase spending by nearly $300 billion above the President’s budget request and create 16 reserve funds—mechanisms for additional tax and spending increases outside budget levels. And to finance this runaway spending, this fiscally-irresponsible blueprint calls for the largest tax increase in history—a $683 billion tax increase balanced on the backs of individuals, families, small businesses and employers. At a time of escalating energy costs, health care expenses, and economic uncertainty, the Majority Party plans to increase the tax burden on 116 million taxpayers—including an average tax increase of $2,755 for Texas taxpayers.
Clearly, more government spending and record-breaking tax increases are not solutions to our current economic uncertainties. According to new jobs figures released by the Bureau of Labor statistics today, nonfarm payroll employment decreased by 63,000 jobs in February. Also, real GDP growth slowed to an annual rate of just 0.6 percent in the fourth quarter of last year.
As the economy reveals continued signs of slowing, Congress should be working to reduce the tax burden and regulatory burden on American families and businesses. Tax relief is essential for growing our economy, allowing taxpayers to keep more of what they earn and enabling businesses to expand and create jobs.
Additionally, Congress has the responsibility to address the looming fiscal crisis of entitlement spending. As the Medicare trustees’ recent warning confirms, entitlement costs are spiraling out of control, and Congress has the responsibility to reform and strengthen important programs such as Social Security, Medicare and Medicaid to ensure their viability for future generations. Unfortunately, the Majority Party’s budget proposal provides no meaningful entitlement reform, giving the appearance of believing that ignoring the entitlement crisis will simply make it go away. The truth is that future generations will bear the brunt of this fiscal folly.
The key to balancing the budget is implementing pro-growth, tax-relief policies along with spending restraint—not raising taxes so that the government can spend more of taxpayers’ money. In the coming days, my Republican colleagues and I will work together to offer a fiscally-responsible budget plan that cuts wasteful spending, reduces the tax burden on Americans, and responsibly reforms entitlement programs for future generations. |
