Taxes and Budget

The annual federal budget deficit is projected to reach 8.3 percent of gross domestic product (GDP) by 2020—more than three times the historical average of 2.3 percent. This dramatic increase in the federal deficit will be exclusively the result of increasing spending, not declining revenues (or the 2001 and 2003 tax cuts). Rapid growth in Social Security, Medicare, and Medicaid costs and interest payments on the national debt will cause virtually all of this new spending. Any sustainable fix must therefore address the source of the problem—rapidly rising entitlement spending.

Barack Obama’s $3.8 trillion 2010 budget created immediate sticker shock this week with an estimated $1.56 trillion record deficit – breaking his own record $1.4 trillion deficit from 2009. But, there’s a lot more to leave you scratching your head wondering what the priorities of this administration really are.

By Patricia Murphy, Politics Daily, February 1, 2010

President Barack Obama’s new $3.83 trillion budget—on its way to Congress Monday— anticipates an even worse deficit this year than last and no big improvement until the economy improves and the nation sheds the crushing costs of two wars overseas.

It’s a bleak, nerve-wracking landscape for any White House, but the president is still betting on significant new spending for education and clean energy initiatives, including billions in loan guarantees for the nuclear power industry.

During his State of the Union address, President Obama said Washington was suffering from a “deficit of trust.” Despite this lofty rhetoric, the President used much of the remainder of his speech to attack Republicans, the Supreme Court, and people concerned with his policies. Attacking the people you hope to win over and work with is no way to bridge divides or “pay down” the deficit of trust.

By Congressman Pete Olson (R-TX)

Earlier this year, the new Administration and the Democratic majorities in the House and Senate joined together to craft an $800 billion economic stimulus package, the goal of which was to reinvigorate our slumping economy. At the height of hope and change sweeping Washington, DC, it was promised that this enormous amount of government spending would put us back on sure economic footing.

Colorado facesa $630 million budget shortfall and stark options now that half of the fiscalyear is past and so much money is already spent.

Balancing abudget during a recession is a difficult, thankless job. But balancing this year's budget didn't needto be this hard if only the leaders at the Capitol had learned from the lastrecession — or listened to those who experienced it.

Last spring asthe economic storm clouds gathered, Gov. Bill Ritter and legislative leadershad opportunities to take precautions.

Here they go again.

Faced with a budget that's hemorrhaging dollars, it was only a matter of time before one of our spendthrift legislators made headlines by erroneously pointing the finger of blame at Colorado's Taxpayers Bill of Rights (TABOR).

Never mind that last spring Governor Ritter and the Democrat-controlled legislature ignored numerous warning signals of a looming recession.

Never mind that they ignored the consensus lesson of the last "budget crisis" — when times are good, save a little money for when times aren't so good.

"Government is the great fiction through which everyone endeavors to live at the expense of everyone else." — Frederic Bastiat.

Contrary to popular belief, the citizen initiative process is not inherently – or even incidentally – conservative. Like government, the initiative is merely a reflection of the attitudes and principles of the people.

Today, the people are not conservative – skeptical, irascible or cynical, perhaps, but not conservative.

Gov. Ritter is the chief proponent of a $321 million tax hike on energy produced in Colorado that is on the November ballot. Advertisements current blanketing the state claim that the scheme just removes a subsidy created thirty years ago to the oil and gas industry that is no longer necessary and creates an unfair advantage for the energy producers.

Nice try Governor.