INCLUDES TAX HIKE ON 116 MILLION AMERICANS AND RAISES THE DEBT LIMIT BY $800 BILLION

Washington, Jun 5, 2008 - “Our nation is experiencing weak economic growth, forcing Americans to tighten the family budget and the Federal government should do the same,” said Rep. Cliff Stearns (R-Ocala). “This Budget Agreement developed by the House and Senate Leadership fails to control the growth in federal spending while imposing an average tax increase of $1,800 on 116 million Americans.” The House today approved S.Con.Res. 70, the Concurrent Budget Resolution, providing $3.041 trillion in federal spending over the next fiscal year, the first budget to exceed $3 trillion.

This budget increases discretionary spending by $80 billion, an 8.6% increase over the previous year’s level. In addition, it raises the unfunded liabilities in Social Security and Medicare by $14 trillion by failing to provide any reform to sustain these programs. Also, the Budget applies the Gephardt Rule, which allows for increasing the federal debt ceiling without a House vote. In this case, this Budget increases the debt ceiling by $800 billion without a separate vote.

“The Budget Agreement calls for halving the child tax credit, reinstating the marriage penalty and death tax, increasing the tax rate on investments and pensions, and ending the exemption for six million low-income individuals who currently pay no taxes. Raising taxes is not the answer for reinvigorating economic growth.”