Out Of Control!

I apologize for doing a third post this week about Democratic Senator Patty Murray's proposed budget, but after the Republican side of the Senate Budget Committee has had time to dig through the budget, they have found some incomprehensible numbers.

This proposed budget is outrageous!

As The Weekly Standard reports, Senator Murray's proposed budget would increase federal spending by 62% over the next 10 years to an astonishing $5.7 trillion in 2023. The increases in spending begins in the very first year as the proposal calls for $162 billion more in spending for 2014 than is expected to be spent this year.

The full story with a graph of the spending increase here: http://www.weeklystandard.com/blogs/proposed-dem-budget-increases-spending-62-over-next-decade_707579.html

Over the last couple months, both Nancy Pelosi and President Obama have firmly denied that we have a spending problem. Pelosi, who has come to be known for some really dumb statements, provided us with another doozie back in February when asked if we have a spending problem. Pelosi is quoted as saying, "So it is almost a false argument to say we have a spending problem, we have a budget deficit problem." I guess Mrs. Pelosi doesn't understand where deficits come from... On Wednesday, President Obama did an interview with ABC and basically acted like our debt was no big deal and that these monumental deficits are sustainable for the next decade.

You can read the full quote from Pelosi and watch the interview here: http://townhall.com/tipsheet/guybenson/2013/02/11/pelosi-we-dont-have-a-spending-problem-n1509431

When liberals say we don't have a spending problem, we have a deficit problem, they really mean we have a revenue problem and taxes need to be raised.

Here's the problem with that mindset. If spending increases over the next decade to these levels, it is impossible to tax enough to keep up. Tax revenue simply can't keep pace with the rate of increase in spending. We are already running trillion dollar deficits because tax revenue can't keep pace with spending. The U.S workforce is limited and as we've seen under this administration, it is actually shrinking. Since Obama took office, the workforce has shrank by 6.8 million. Between baby boomers retiring and the lack of jobs available, the number of taxpayers contributing to federal revenue is decreasing. 

With the workforce shrinking, liberals say let's take more from the wealthy because they need to pay their "fair share" so they advocate for higher taxes. As history has shown us, higher tax rates doesn't necessarily mean more revenue. After a certain point the wealthy will get fed up with their rates constantly going up, and they'll look for ways around paying taxes and revenue will level off. If spending keeps increasing and revenue levels off, the deficits will grow larger and larger. With this budget proposal projecting $5.7 trillion in spending in 2023, we could see deficits knocking on the door of $2 trillion per year or more.

Things are out of control!