“From World War II through 2009, every dollar of new federal tax revenue resulted in $1.17 in new spending. Tax reductions in 2001 and 2003 resulted in more revenue to the federal Treasury. The expanding economy spurred by this tax relief helped to reduce the annual budget deficit from $412.7 billion in 2004 to $160.7 billion in 2007. Even the most sincere argument that raising taxes will reduce the deficit and debt doesn’t have history to back it up.
Outside of Washington, it’s obvious that the problem isn’t that people are under-taxed, but that Washington over spends. They said so loud and clear in the last election. Government spending increased by 22 percent during the last two years. If we follow the budget proposed this year by President Obama, we’ll add another $13 trillion to our national debt over the next decade.
This debt gets in the way of the economic activity that creates jobs, and it’s a terrible burden to leave future generations. Washington needs to get behind policies that clamp down on spending and grow the economy. Increased economic activity increases revenue to the federal Treasury, enabling deficit and debt reduction. The answer is not defending ways to grow the government.”
King: Obama Uses Debt Crisis to Run for Reelection
Congressman Steve King released the following statement in response to the speech President Obama delivered today on the topic of the nation’s debt and deficits.
“It should be clear that President Obama doesn’t view the nation’s debt crisis as a problem to be solved, but as a tool to be used to advance his own reelection hopes,” said King. “In one speech, the President managed to hit all the notes that his demoralized liberal base wanted to hear: he played the class warfare card, he endorsed cutting defense spending, he demagogued Paul Ryan’s ‘Path to Prosperity,’ he touted the unconstitutional ObamaCare law, and he even blamed Bush for the nation’s current debt problems. While the speech may excite some on the far-left, it should be viewed with disappointment by Americans who were hoping that the President would put politics aside to work on behalf of cutting spending and lowering the nation’s debt.”
Latham’s Statement on President Obama’s National Debt Speech
Iowa Congressman Tom Latham issued the following statement after President Obama’s address on the national debt and fiscal policy:
“I’m glad President Obama has joined the debate on how we can repair our country’s fiscal standing. We simply cannot continue to spend money we don’t have, and it will take a truly bipartisan effort to cut spending, reduce the debt and improve the environment for job creation. But raising taxes on anyone while the economy is in such a fragile condition will put us in an even deeper hole. Congress must realize that the government doesn’t have a revenue problem. It has a spending problem.
“I am fully committed to working with the White House and any of my colleagues in Congress – regardless of party affiliation – who are willing to boldly stand up and address our country’s fiscal crisis and do the right thing for American families, farms and main streets.”
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