House Majority 2009 Federal Budget

Spending:

·        Budget increases discretionary spending by $74 Billion

·        Budget doesn’t terminate a single wasteful government program
 

This means that, in 2008, Washington will spend $2.931 Trillion, which amounts to $25,117 per household.

Taxes:

·        Budget increases taxes by $1.265 trillion over 5 years

·        Budget doesn’t extend 2001 or 2003 tax cuts (ends child tax credit, ends marriage penalty relief, marginal income tax rates will go from 25 percent to 28 percent, the estate tax would surge from zero to 55 percent.)
 

This means that taxes on families and business would rise by an average of more than 12 percent, or $3,135 per household, in the next several years.  It also means that businesses will pull back capital investment in anticipation of higher taxes, which means less job creation.  **All during a time of an economic slowdown.**   
 

Deficit:
 

·         Budget means we will run a $410 Billion deficit in 2008
 

This means that to balance this budget, each household would have to send the government an extra $3,513 this year.  **Note that the budget deficit will increase beyond $410 Billion because the economy is slowing.**
 

Entitlements:
 

·         Budget Completely ignores Social Security, Medicare, and Medicaid's increasing costs

·         On January 1, 2008, the first baby boomers became eligible for early Social Security benefits…In just three years, they will become eligible for Medicare.
 

Inaction means that these programs will leap from 8.4 percent of American GDP to 18.6 percent in the coming decades.