Rep. Price Issues Statement on FY 2016 Budget

Congressman Tom Price (R-06) is the first Georgia Republican to chair the House Budget Committee, and the first Georgian to do so since Carl Vinson. Rep. Price issued a press release today detailing his thoughts on President Obama’s budget, described as “a proposal that never balances and includes a $2.4 trillion spending increase, a $2.1 trillion tax increase and adds $8.5 trillion to the national debt.”

The press release includes a joint statement issued by Rep. Price and Senate Budget Committee Chairman Mike Enzi (R-WY):

“Our nation is on a fiscal and economic path that is simply unsustainable. Failed policies and stale thinking in Washington are contributing to a growing mountain of debt and an underperforming economy. That’s why it’s so disturbing that President Obama has submitted yet another budget proposal that is focused on the same tired agenda that has failed to deliver for American families. The president is advocating more spending, more taxes and more debt. As we have seen over the past several years, that approach will yield less opportunity for the middle class and a crushing burden of debt that threatens both our future prosperity and our national security. A proposal that never balances is not a serious plan for America’s fiscal future. Especially when we have to borrow money just to afford the programs we already have.

“The president is required by law to submit a budget proposal. It is a suggestion and a wish list, but the budget of Congress sets the outline of spending for the coming year.  We will work with our colleagues to make sure it is complete, on-time, and balanced within the next ten years.

“We are ready to move past the new normal of President Obama’s budget and in a new direction. We want to make government more efficient and accountable to hard-working taxpayers by lifting the regulatory burden on families and job creators, and by embracing the innovative spirit that drives American entrepreneurship and success. This is how we as a nation can lay the foundation for a healthy economy and a responsible federal budget.”

Continue reading for the Budget Committee’s details on the FY 2016 Budget, as well as highlights from Rep. Price’s remarks at this morning’s Cobb Chamber meeting.

But wait, there’s more!

Key Facts: The President’s FY 2016 Budget

Tax Increases
• Despite $2.1 trillion in new tax increases, President Obama’s budget never balances—ever.
• Major proposed tax increases include higher levies on savings and investment, small businesses, and increases in the costs of hiring workers.
• These tax hikes would stunt the economic growth needed to get Americans back to work, and come on top of $1.7 trillion in tax hikes already imposed by this Administration.

Spending Increases
• The President’s budget increases annually-appropriated spending for next year by $74 billion relative to current law. Over 5 years, he would increase such spending by $322 billion.
• Next year alone, the President’s budget would grow total federal spending by $259 billion, or 7 percent.
• Total spending will increase by 65 percent ($2.4 trillion) in 10 years under the President’s plan.

Interest Costs Skyrocket
• President Obama’s plan more than triples interest costs, which remain the fastest growing item in the budget.
• Interest on the debt this year would be $229 billion, but would rise to $785 billion in 2025 under his plan.
• At the end of President’s plan, annual interest costs would be larger than his proposed spending for national defense, Medicaid or the combined total of all non-defense agency spending.

Debt Climbs
• Since 2009, we’ve added $7.5 trillion to the debt and spent $21.1 trillion.
• The President’s budget plan would add $8.5 trillion to the debt.
• Cumulative deficits would amount to $5.7 trillion, and gross debt would climb to $26.3 trillion in 2025.

Finally, a few nuggets from this morning’s Cobb Chamber meeting:

  • The past four years in Washington have been a “muddled mess,” but we are beginning to turn a corner, and hopefully we are seeing “more optimism” coming out of D.C.
  • In the past two months, there have been more amendments offered to bills than during the past two years.
  • In Rep. Price’s view, if the President signs a piece of legislation, that’s a win, and if he vetoes legislation, that veto provides the nation with a vision of the contrast at work in D.C., as well as “motivation.”
  • It’s no secret that lots of folks are feeling pinched by healthcare costs. Premiums, deductibles, and co-pays are all rising. If you have a $6,000 deductible, “you might as well not have coverage.”
  • Tax reform is key to getting the economy working, and we need it now, including massive reform to the international tax system. “We whack companies who make money overseas and try to bring money back.” $4-5 trillion made by United States companies stays overseas for this reason.
  • We need a transportation bill with a six-year timeline.
  • It is time to prioritize a commissary for Dobbins. Dobbins is a “jewel,” and it needs a commissary to serve all branches of the military. Without a commissary, “we are not living up to promise made to those who served.” Along with the Chamber, he is working to find a location for a commissary that is close to Dobbins. (There hasn’t been a military commissary in Atlanta since Fort Gillem closed in 2011.)

17 comments

  1. Teri says:

    (The budget apparently also does not include an Oxford comma, which drives me batty every time I read the quote in that second sentence up there.)

    • saltycracker says:

      Shouldna it been “….Committee an’ the first Georgian….”? Git those comma’s rite ! ( but agree with you 🙂 )

  2. PegM says:

    I am at a loss to understand this country’s budgeting process. I’m a simple person……you count how much you have coming in, pay your bills, and if there is leftover you spend it on some wants and needs…..and borrowing or credit card debt is something to stay away from at all costs. If we quit giving away a fraction of what we do in foreign aid, we would have more to handle the issues of our own country. And food for thought….when was the last time a foreign country gave us money to help out during a disaster? or a disease outbreak? or anything else for that matter…

    • John Konop says:

      The material part of the budget is military and entitlements…..unless you tackle the two areas most of the discussion is just bs…..

      Think of this as a two fold issues you need the economy to grow to tax revenue in…..and you need to cut overhead….

      The biggest expenses are really focused into being policemen of the world and Medicare….both spiraling out of control….but when you talk Medicare reform both sides scream killing grandma and or death panels and nothing gets done…..we need a real adult reforms….stop the bs on both sides….as far as military we are always pushing onto the next venture…..going nowhere fast other than blowing money….I have an idea focus on America….

      On the revenue side the two biggest savings would be ending the war on drugs, and improving infrastructure…..ending War on Drugs would increase employment and wages via the scarlet letter it puts on people…..also lower entitlement expenses……As we improve on infastrure ie more jobs…more jobs more tax revenue….if we did the Keystone pipeline with a right of first refusal on the oil….also with internal production increasing in America and growth of alternative energy, that would keep fuel prices low ie more spending…more tax revenue….

      • Rick Day says:

        Legalize drugs? *gasp* But..but….but…

        think of the cops!

        GOP: come to us with an “America First” attitude and let’s let the military stand pat for a year or so, close some bases and resell the properties to commercial ventures by deeding the lands back to the last private owners (or their descendents).

        If a worker can manufacture parts off a lathe, there will be a good job for him. Not as tight benefits, but we all should have to make sacrifices.

        All up and down the tax board. Equal burden.

        Well typed. They won’t listen, but well typed, still.

  3. gcp says:

    Well we all know the problem Rep. Price, now please a few recommendations and I am not talking about a new commissary at Dobbins.

  4. Dave Bearse says:

    Listen up real close. Price and colleagues after all nailed it when they said in 2009 and 2010 that inflation would be out of control in only a few years.

    • Harry says:

      Don’t worry…it’s coming. There have been some favorable tailwinds lately in the form of oil and a “comparatively” strong dollar, but don’t congratulate yourself too much. We can’t keep on deficit spending like the Rothchilds without consequence. If Obama has his way we’ll be like Venezuela.

      • John Konop says:

        The biggest issue to watch is the tax payer backed derivatives that killed us last time. In the last budget it was uncapped again….This allows for crazy levels of debt with tax payers backing the bet….As far as the national debt it will go down as a percentage of GDP via the above heat up…..but will crash hard like last time….think of it this way…..could you imagine you could go to vegas bet a million dollars…if you win you get the money….and if not tax payers are left with the bill….we are in for another wild ride…..

  5. northside101 says:

    Amazing in a $4 trillion or so budget, we can’t find a mere 1 percent—penny on the dollar—to cut? Reminds me of Nancy Pelosi years ago saying something to effect, “there is no more fat to cut.” About what you would expect from a far, far-left congresswoman.

    Hard to believe, but in JFK’s time, the federal budget was only about $100 billion or so a year—even under big-spending LBJ (much of it fueled by Vietnam), the budget probably wasn’t much over $200 billion when he left office. Since then of course, spending has increased well beyond inflation and population growth.

    John K is right—military and entitlements the big items in the budget—not foreign aid, the National Park Service, federal museums—but no one wants to touch the big 2. Why not give younger workers (say under 30) the option to invest some of their Social Security taxes in private accounts? Oh, I guess that would make people less dependent on government—would not want that!!!

    • Harry says:

      It would be nice if Obama would step up and assume leadership on controlling derivatives and the bloated military and entitlements.

    • TheEiger says:

      Last year you could have cut out everything that is the federal government (military, foreign aide, Congress, EPA, Depart of Ed, National Parks, Judiciary, and so on) except for non discretionary spending (that’s Medicaid, Medicare, Social Security and interest on our $18 trillion debt) and still not balance the budget.

      So we can talk about ending all foreign aide and oversees activities and still not get close to balancing. We talk about the big bad IRS, EPA and cutting them to the bone and we will still be running up the debt.

      To be considered remotely serious, you have to address Medicaid, Medicare and Social Security. I would start with completely revamping SSI disability. Democrats love talking about waste, fraud and abuse. Well, there you go. That is a black hole of waste, fraud and abuse.

      Social Security should allow younger people to opt into a defined contribution 401(k) or IRA style plan. The idea of a defined benefit should be thrown out the door. We aren’t going to get our defined benefits as it is. The money that is saved in the SSI disability revamp should go directly back into the real Social Security “trust fund” to help pay the promises that our politicians have already made to seniors. That won’t fix it forever, but it’s a step in the right direction and gets us all talking about the real cost drivers of our debt.

      Medicaid should be block granted to the states to take care of their citizens the best way that they can. The vast majority of current Medicaid recipients in Georgia are healthy moms and healthy kids. Yet we have to keep the entire portion of their Medicaid dollars on the books in case all of those healthy kids all get sick at once. That’s not how insurance works so that’s not how Medicaid should work. If we were to just change that formula we could expand Medicaid and cover everyone in the state that is truly in need with the current Medicaid dollars we have in Georgia. But we can’t because of the strings attached and the formulas that are mandated by the federal government. Block grant Medicaid.

      Or I could just be made king for the day and I’d fix it.

      • John Konop says:

        In all due respect you avoid the biggest issue which is healthcare cost rising way faster than GDP..this will take some real cuts which I have posted many times without the political bs on both sides….for instance a living will for people is not the same as a death panel….we know 60 percent of healthcare cost is spent your last 6 months…..on a macro nobody has nearly paid for Medicare….which is why we must replace the payroll taxes and Medicare fee with a VAT….as you agree….people from the right and left must understand we do not have unlimited money for every healthcare concern via Medicare….other ideas like using VA drug pricing for Medicare and government workers must be on the table, using dial a doc over emergency room care must be on the table, as well as many other cost cutting savings….

        • TheEiger says:

          The other solutions I brought up were the “easier” fixes. Medicare has to be addressed, but is also the more difficult one. But you can’t address it by saying healthcare costs a lot so Medicare needs to pay for it. I agree with you that you have to address the reasons why healthcare costs too much. The things you mention would work to help drive costs down somewhat. Addressing the practice of defensive medicine needs to also be a part of fixing not only Medicare, but healthcare in general.

          I still want to be king for a day.

          • John Konop says:

            You are right….I was not saying at all that was the only ideas by far…..the macro point is the focus needs to on cost containment….and we cannot just have workers paying for all this….when the people getting Medicare have not nearly paid for it….

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