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House budget and President's budget compared 

Congresswoman Virginia Foxx

Last month, the House of Representatives passed a landmark budget with $5.8 trillion in spending cuts.   It also included a proposal to reform and save Medicare for future generations, while leaving it untouched for current retirees.  Critics lambasted the budget for its “draconian” spending cuts and for “destroying” Medicare.   These distortions ignore the fact that the federal government is currently borrowing 40 cents of each dollar it spends and that Medicare is broken and, if left unfixed, is headed for bankruptcy in nine short years.

Guess what got lost in the avalanche of news coverage of the budget debate?  The alternative to the House-passed budget, known as the President’s Budget.  To help decide which is the best path to take, here are the facts of the budgets to help you compare President Obama’s budget proposal and the House-passed budget. 

First, take a look at the spending levels in the two budgets.  The House-passed budget reduces spending by $5.8 trillion and brings most federal departments to below 2008 pre-stimulus spending levels.  President Obama’s budget, on the other hand, increases spending by $400 billion.

Next, consider how the two budgets treat federal taxes.  The House budget halts all new tax increases proposed or implemented by President Obama and completely reforms the tax code to eliminate its confusing multitude of loopholes and restore tax fairness.  In contrast, President Obama’s budget imposes $1.5 trillion in tax increases and keeps in place the highest business taxes in the developed world. 

These are very dramatic differences on taxes and spending.   While the House budget assumes government is spending too much, the President’s budget assumes Americans are taxed too little.  However, an April 2011 Gallup poll found that, by a more than 3-to-1 margin, Americans say the government spends too much, rather than taxes too little. 

This “no more over-spending” sentiment underscores why the House budget reduces the size of the federal government.  For example, the federal government historically has been about 20% of the economy or smaller.  Recently, however, over-spending has grown the federal government to closer to 25% of economy. 

In response to this government bloat, the House budget returns government back to 20% of the economy within five years and to 15% of the economy within 40 years.   As you may have guessed, the President’s budget does not shrink the government.  Instead government spending never drops below 23% of the economy under his budget.

Finally, the two budgets take very different approaches to the debt and deficit.  The House budget will reduce the deficit to below $1 trillion for the first time in four years.  On the other hand, the President’s proposal projects a $1.2 trillion deficit next year.  His budget also adds $9.1 trillion to the national debt over the next 10 years, while the House budget reduces the debt by $4.7 trillion relative to the President’s budget. 

These are only a few of the reasons that I supported the House-passed budget.  It is the only plan that gets spending under control and reduces the size of Washington’s bureaucracy.  At the same time it puts us on a path to economic prosperity and makes us more competitive in the global marketplace by simplifying our tax code, reducing our indebtedness to foreign holders of our debt and setting the stage for more jobs being created.

With these facts in mind, I’m interested to hear which budget you would prefer.  You can take a brief survey (click here) to make your voice heard on this issue.  You can also review very detailed descriptions of the two different budgets from the House Budget Committee and the White House.  Decide which budget you think is best for America’s future and then let me know.  I’m looking forward to your feedback.