Tomorrow, Office of Management and Budget (OMB) Director Josh Bolton
will address the House Budget Committee to release the mid-session
budget review. The report will show a substantial budget deficit that
big spending liberals will use to demonize tax cuts. Nothing could be
further from the truth. Consider these facts:
FY 03
*68 percent of the widening of the deficit in fiscal year 2003 to date is the result of spending.
*The decline in revenues stems from a slower economy, most notably a slower stock market, and hence less capital gains revenue.
*With the markets restoring nearly $2 trillion of wealth since October, capital gains revenue will be restored while spending remains uncontrolled.
FY 00 – FY 02
*75 percent of the deficit is the result of spending and capital gains revenue decline.
*Other factors not included in this number were income and corporate tax revenue declines due to the recession.
*Tax cuts had virtually no effect on the deficit in this period.
Federal Spending Facts
*If spending were held to rate of income growth from 1994 to 2000, the country would have ”’never”’ entered a surplus. It was only by reducing spending, relative to national income, that the country was able to have a surplus.
*Spending is now increasing ”’faster”’ than income growth. If spending had been held to the rate of income growth since 2000, the deficit would be just $70 billion – not $400 billion.
*Annual spending increases from 2000 to 2003 more than ”’triples”’ the amount of annual spending increases from 1992 to 2000.
*The average American must now work 87 days in 2003 to pay for federal spending, an increase of 10 days compared to 2000.
*The number of individual pork projects has increased 48 percent over the past two years.
Reforms are Needed
*Term Limit Appropriators
*Keep Spending At The Rate of Inflation
*Cut Out All Pork
*Eliminate Corporate Welfare
*Reform Social Security, Medicare, and Unemployment Insurance
Without these reforms, budget deficits will continue indefinitely regardless of how quickly the economy rebounds.
”’Americans for Tax Reform is a non-partisan coalition of taxpayers and taxpayer groups who oppose all federal and state tax increases. See its Web site at:”’ https://www.atr.org/ ”’For more information, please contact Jonathan Collegio at (202) 785-0266 or by email at”’ mailto:jcollegio@atr.org