Budget Fact #15

The Democrats April Fools' Day Budget Jokes

The Jokes And Facts About The Democrats' Budget:

The Democrats Are "As Serious As A Heart Attack" About Fiscal Restraint: APRIL FOOLS – Unfortunately, the Democrats' budget adds $9.3 trillion to the national debt. This would lead to unprecedented borrowing, with debt held by the public increasing from 41% of GDP in 2008 to 82% of GDP in 2019.

The Democrats' Budget Will Halve The Deficit: APRIL FOOLS – The Democrats' say their budget will halve the deficit in four years. Yet, the Democrats don't give the rest of the story. According to both the CBO and OMB, the budget deficit will increase every year after the Democrats claim they have halved the deficit. Claiming to cut the deficit in half is a useful talking point but it covers up for the fact that by 2013 the budget deficit is increasing each year. This will continue through 2019.

The Democrats' Budget Is "Honest" And "Transparent": APRIL FOOLS – According to The Washington Post, Congressional Democrats are resorting to "gimmickry" in an attempt to make the budget "look better on paper." However, this "does nothing to improve a dangerous fiscal picture" under the Democrats' budget which CBO estimates could lead to as much as $9.3 trillion in new debt over the next ten years. The USA Today also wrote about the Democrats' "underwhelming display of short-term tinkering to whittle down the cost" of the budget. Despite the calls for an "honest" budget, the Democrats have produced a budget that now looks better on paper only.

The Democrats' Budget Gives 95% Of Americans A Tax Cut: APRIL FOOLS – As passed in the stimulus bill, that tax cut for 95% of Americans only amounts to nearly $13 a week for an average family. Now, the Democrats' budget will end this tax credit in two years. At the same time that they are ending their tax credit, the Democrats' budget institutes tax hikes on energy, small businesses, housing and charitable giving.

The Democrats' Budget Is Not Tax-And-Spend: APRIL FOOLS – The Democrats' budget will raise taxes by $1.4 trillion over the next ten years.

The Democrats' Budget Will Not Tax All Americans: APRIL FOOLS – The cap-and-trade proposal in the Democrats' budget will lead to higher energy prices and a tax for every American who uses energy. The Democrats' cap-and-trade proposal represents a new national climate tax that will cost every household up to $3,128 annually in higher costs for natural gas, electricity, home heating oil and gasoline. This comes as no surprise as President Obama warned that his proposal would cause electricity prices to "necessarily skyrocket."

The Democrats' Budget Will Help Small Businesses: APRIL FOOLS – The Democrats' budget includes a proposal to raise income taxes. Because most small businesses do not pay corporate income taxes, and instead pay taxes on small business income on their individual returns, small businesses will be particularly hard hit by this tax increase. According to the Urban-Brookings Tax Policy Center, 50.3% of all filers in the top bracket earn at least 25% of their income from business activities.

The Democrats' Budget Will Not Bring Back The Death Tax: APRIL FOOLS – The estate tax, scheduled to be repealed next year, would be continued under the Democrats' budget. The Democrats' budget would set the death tax rate at 45%, combined with an exclusion of $3.5 million.

The Democrats' Budget Is Based Upon Sound Economic Assumptions: APRIL FOOLS –The Democrats' budget is based upon rosy economic assumptions. The Democrats estimate that the economy will shrink by 1.2% this year and grow by 3.2% in 2010. The Blue Chip Economic projections forecast the economy will contract by 1.9% this year and grow by only 2.1% in 2010. Democrats are using unrealistic economic assumptions to justify their tax and spend agenda.

The Democrats' Budget Makes The Hard Choices: APRIL FOOLS – In light of a budget that spends, taxes and borrows too much, the Democrats will only promise future "adjustments" to the budget. Additionally, rather than setting aside funding for new spending initiatives, the House Democrats’ budget establishes 17 deficit neutral reserve funds, twelve of which would permit unlimited amounts of new spending and taxes.

The Democrats' Budget Will Lead To Trillions In Savings: APRIL FOOLS – The Democrats' budget relies on reducing operations in Iraq from unrealistically high forecasts to provide them with much of their supposed "savings." Also, as part of their original "savings" estimate, the Democrats counted tax increases. Most Americans would not consider tax increases to be budget savings.

Posted by: Press Secretary