WASHINGTON, D.C. – Today, the White House released President Obama’s budget request for Fiscal Year 2016 – 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. House Budget Committee Chairman Tom Price, M.D. (GA-06) and Senate Budget Committee Chairman Mike Enzi (R-WY) issued the following joint statement in response:
“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.”
Key Facts: The President’s FY 2016 Budget
• 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.
• 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.
• 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.