Today, the White House released President Obama’s budget request for Fiscal Year 2016 – a proposal that never balances and includes a $2.4 trillion spending increase, a $2.1 trillion tax increase and adds $8.5 trillion to the national debt. Senate Budget Committee Chairman Mike Enzi (R-WY) and House Budget Committee Chairman Tom Price, M.D. (GA-06) issued the following joint statement in response:
“Our nation is on a fiscal and economic path that is simply unsustainable. Failed policies and stale thinking in Washington are contributing to a growing mountain of debt and an underperforming economy. That’s why it’s so disturbing that President Obama has submitted yet another budget proposal that is focused on the same tired agenda that has failed to deliver for American families. The president is advocating more spending, more taxes and more debt. As we have seen over the past several years, that approach will yield less opportunity for the middle class and a crushing burden of debt that threatens both our future prosperity and our national security. A proposal that never balances is not a serious plan for America’s fiscal future. Especially when we have to borrow money just to afford the programs we already have.
“The president is required by law to submit a budget proposal. It is a suggestion and a wish list, but the budget of Congress sets the outline of spending for the coming year. We will work with our colleagues to make sure it is complete, on-time, and balanced within the next ten years.
“We are ready to move past the new normal of President Obama’s budget and in a new direction. We want to make government more efficient and accountable to hard-working taxpayers by lifting the regulatory burden on families and job creators, and by embracing the innovative spirit that drives American entrepreneurship and success. This is how we as a nation can lay the foundation for a healthy economy and a responsible federal budget.”
Key Facts: The President's FY 2016 Budget
• Despite $2.1 trillion in new tax increases, President Obama’s budget never balances—ever.
• Major proposed tax increases include higher levies on savings and investment, small businesses, and increases in the costs of hiring workers.
• These tax hikes would stunt the economic growth needed to get Americans back to work, and come on top of $1.7 trillion in tax hikes already imposed by this Administration.
• The President’s budget increases annually-appropriated spending for next year by $74 billion relative to current law. Over 5 years, he would increase such spending by $322 billion.
• Next year alone, the President’s budget would grow total federal spending by $259 billion, or 7 percent.
• Total spending will increase by 65 percent ($2.4 trillion) in 10 years under the President’s plan.
Interest Costs Skyrocket
• President Obama’s plan more than triples interest costs, which remain the fastest growing item in the budget.
• Interest on the debt this year would be $229 billion, but would rise to $785 billion in 2025 under his plan.
• At the end of President’s plan, annual interest costs would be larger than his proposed spending for national defense, Medicaid or the combined total of all non-defense agency spending.
• Since 2009, we’ve added $7.5 trillion to the debt and spent $21.1 trillion.
• The President’s budget plan would add $8.5 trillion to the debt.
• Cumulative deficits would amount to $5.7 trillion, and gross debt would climb to $26.3 trillion in 2025.
GOP Budget committee member quotes
“The President's budget ducks fiscal responsibility and punts on the long-term debt crisis facing this country. His budget sends a foreshadowing clue to the American people. On this Groundhog Day, the President is putting fiscal responsibility back into hibernation. By proposing even more taxing, more spending and more borrowing, he’s proving that the shadow of the nation's debt crisis has not passed.”
“Under the President’s plan, annual interest payments alone rise from $229 billion to $785 billion a year. That’s almost 20 times what we spend right now on the highway budget… Average family incomes are down more than $4,000 since 2009… The government is becoming bigger and more powerful, while working families are getting squeezed out. It’s time for a budget that puts working Americans—not Washington bureaucrats—first.”
“The President’s budget drastically misses the mark. Once again, the President proposes his Washington-knows-best approach of higher taxes, more spending, and bigger government. Handing our kids and grandkids even more debt like this is downright irresponsible. Georgians sent me to the Senate to stop this insanity, and finally take some serious steps to tackle our full-blown fiscal crisis now – not down the road. We already have a growing debt of $18 trillion, plus tens of trillions of dollars of unfunded future liabilities - that is unsustainable. We need a new path that moves toward a balanced budget. I am fully committed to fight every day to cut out-of-control spending and make the federal government more efficient, effective, and accountable to the American people.
“The President is proposing yet more taxes to finance more government spending, despite already having imposed more than $1.8 trillion in taxes hikes during his time in office. When the bipartisan spending caps first took effect, the President and his allies predicted economic doom. Instead, the economy has continued to make modest strides and would be doing significantly better were it not for tax hikes and burdensome regulations slowing growth.
“This is not a serious budget. Not only does it fail to reach balance, it continues massive deficits as far as the eye can see. It is unfortunate that the President ignored this opportunity to propose serious bipartisan reforms.”