What are the consequences of Obama’s $3.6 trillion overspending plan?
*Houston Chronicle, by U.S. Sen. John Cornyn, March 16, 2009
“I had hoped that President Obama would send us a budget plan that would hasten our economic recovery — and keep the promises he made last year. I appreciated his pledge to go line by line through the federal budget to eliminate wasteful spending. I welcomed his commitment to eliminate capital gains taxes for new small businesses. And I agreed that we must reduce our dependence on foreign oil.
Yet the president’s spending plan reflects far different priorities that I cannot support. Instead of eliminating wasteful spending, the omnibus bill funded 122 programs we already covered in the stimulus bill. Overall, the president’s $3.6 trillion budget will double the national debt over the next five years, and triple it over the next decade. But the biggest disappointments in his budget are the tax increases. Over the next ten years, the president will raise net taxes by $1.4 trillion, with devastating consequences for job creation and economic growth.
First, President Obama wants to raise taxes on small businesses. Small businesses create two-thirds of the new jobs in our economy, and most pay taxes on their small business income as individuals. Raising taxes on the most successful small businesses will force layoffs or reduce new investment across Texas. And President Obama has now proposed delaying the implementation of his capital gains tax pledge until 2014, while actually raising capital gains taxes over the next several years on many small businesses.”
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