INCLUDES NEW SPENDING, NEW TAXES, AND NEW DEFICITS
 

Washington, Feb 14 -

President Obama today released his budget proposal for fiscal year 2012.  “The President’s Office of Management and Budget (OMB) reports proposed spending $3.73 trillion this year, or nearly 25 percent of the nation’s gross domestic product, the highest percentage since World War II,” stated Rep. Cliff Stearns (R-Sixth).“According to OMB, it calls for $46 trillion in spending over the next decade.  We are borrowing about 40 cents for every dollar spent by the federal government with a national debt exceeding $14 trillion, and the National Journal reports that this plan would add $10 trillion more in debt over 10 years.”

In its review of the plan, Americans for Tax Reform finds that it includes $1.5 trillion in new taxes over 10 years that would diminish economic growth and job creation.  “In addition to raising taxes, this plan calls for a massive legacy of debt for future Americans,” added Stearns.  “By the end of the decade, Americans for Limited Government projects annual interest payments would be $844 billion, with total interest payments of $5.7 trillion.”

In contrast to the President’s budget proposal, Stearns has endorsed the Spending Reduction Act, which would reduce spending by $2.5 trillion over 10 years.  The bill would hold this year’s non-security discretionary spending to 2008 levels and hold non-defense spending to 2006 levels thereafter for 10 years.In addition, it contains more that 100 program eliminations or savings proposals, such as reducing funding for the Department of Energy and the National Endowment for the Arts.