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Elections, Features, Politics

SOTU FACT: Spending is the Problem

Posted: February 13, 2013 at 10:30 am   /   by

CLAIM: We need to raise taxes (again) to address our deficit and debt.

  • “Most Americans – Democrats, Republicans, and Independents – understand that we can’t just cut our way to prosperity. They know that broad-based economic growth requires a balanced approach to deficit reduction, with spending cuts and revenue…” (President Obama, State of the Union Address, February 12, 2013)

FACT:  The president already got his tax hikes. The national debt has grown by nearly $6 trillion so far under President Obama — and government spending is the problem.

  • President Obama told Speaker Boehner “we don’t have a spending problem.” But as the chart above – prepared by Chairman Paul Ryan (R-WI) and the House Budget Committee – shows, even after the president’s tax increases (blue), we still face a mountain of spending-driven debt (red).
  • “Under Obama, federal outlays — the technical term for federal spending — have increased to between 24 and 25 percent of gross domestic product,” says Michael Barone. “That’s a higher level of federal spending than in any year since 1946.”
  • “President Obama promised that higher taxes on the affluent would usher in a fiscal golden age,” says  the Wall Street Journal, but the Congressional Budget Office (CBO) says “federal debt held by the public will continue to rise.”
  • Investor’s Business Daily says “the rapid growth of entitlement programs — not insufficient tax revenues — is driving the nation’s long-term debt crisis.”
  • Four out of the president’s five budget proposals have been late and not one has attempted to strengthen our entitlement programs long-term — or balanced the budget.

BOEHNER QUOTE: “The number one priority for the American people is creating jobs and getting our spending under control. … Americans know that another tax hike isn’t going to help them. ” (Weekly Press Conference, 2/6/13)

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SOTU FACT: Spending is the Problem