THE BLOG

Over at NRO this week, Cato scholar Michael Tanner takes issue with Republicans who, when it comes to spending, seem to be willing to talk, but not walk.

Citing NRCC Chair Greg Walden’s reaction to President Obama’s budget a few weeks ago, in which he lambasted the President over cuts to Social Security instead of the budget’s trillions in new spending, debt, and taxes, Tanner wonders if Republicans are actually serious about this spending thing.

Tanner goes on to list many more examples of Republican meekness involving defense, farm subsidies, NASA funding, and more, coming to the same conclusion that we painfully reach seemingly each and every time:

Members, regardless of party, consistently abandon principle when their own interests are challenged.

If you’ll remember, Ending Spending confronted a huge part of this problem in 2011 by successfully lobbying for an earmark moratorium by House Republicans. It is, to this date, one of our proudest achievements.

Lest we run a victory lap, Tanner’s post reminds us that the work is far from over, even among those who are seemingly friendliest to our cause of solving our nation’s spending crisis.

http://nationalreview.com/article/347041/how-serious-are-republicans/page/0/1

Crossed posted from American for Tax Reform: bit.ly/16N7LvF

WASHINGTON, D.C. — There are literally dozens of new tax increases in the FY 2014 Obama budget. In total, they increase taxes by nearly $1 trillion over the next decade. They would permanently bring the federal tax burden to 20 percent of economic output, a level only reached in one year since World War II (FY 2000, when the economy was roaring and tax revenues were pouring into Washington as a result).

Below are the top ten tax increases in President Obama’s budget (all numbers are over a decade):

1. Chained CPI. The budget would change the definition of inflation for all federal budget purposes, including federal tax provisions. Because tax brackets and other tax items are indexed to inflation, slowing down their growth is an income tax increase. This is a tax increase for all Americans who pay income tax, including middle class Americans. In the past, Congress’ Joint Committee on Taxation has estimated that enacted “chained CPI” would be a $100 billion tax increase.

2. Itemized deduction cap. The Obama budget limits the maximum value of itemized deductions, like those for charitable donations and mortgage interest. This is an income tax increase. No matter what tax bracket you are in, under this Obama provision you can’t benefit any more than if you were in the 28 percent bracket. There are three tax brackets higher than this: 33 percent, 35 percent, and 39.6 percent. These families will not be able to fully deduct things like mortgage interest, charitable deductions, and state taxes paid. Note that this is on top of the phaseout of itemized deductions (“Pease”) that President Obama forced on taxpayers in the fiscal cliff. Tax increase: $529 billion

3. Death tax hike. The Obama budget would raise the death tax rate from 40 percent today to 45 percent. It would also reduce the inflation-indexed death tax “standard deduction” from $10.3 million today for married couples (half that for singles) to $3.5 million with no inflation adjustment. There are also other death tax increases of a more technical nature. Tax increase: $79 billion

4. “Buffett rule.” The President’s budget would impose a new “Buffett rule” on taxpayers whose adjusted gross income exceeds $1 million. These taxpayers would have to face an average tax rate (that is, their tax bill divided by their income less charitable contributions) of 30 percent. Tax increase: $53 billion

5. Tobacco tax hike. The President’s budget nearly doubles the tobacco tax, from $1.01 to $1.95 per pack, and then indexes it to inflation from there. This is a clear tax hike on middle class Americans. According to independent estimates, the average smoker in America makes about . Additionally, tobacco taxes are a declining tax revenue base, and as a result it’s inappropriate to fund new government programs using it. This isn’t the first time President Obama has raised federal tobacco taxes. In 2009, on his sixteenth day in office, he signed into law a 156 percent increase in the tobacco tax. Such tax increases are a violation of Obama’s central campaign promise not to sign “any form of tax increase” on Americans making less than $250,000 per year. Tax increase: $78 billion

Unquestionably, this week was a banner week for the discussion of government spending. Between the funding of duck genitalia studies, millions in excessive catfish inspections, and an Obama budget which adds a trillion in new taxes with pennies on the dollar in spending cuts, it’s also been a provocative one. To wit:

- CNSNews.com this week launched Waste Watch, a section of the popular news site dedicated to newly reported instances of ridiculous spending by the federal government, including at launch $400,000 to study duck genitalia, $700,000 for gardening at the U.S. NATO Ambassador’s residence in Belgium, and $2.1 million last year to literally study what animals are thinking. Given our heritage in the earmark battle, we welcome this new window for the public into the ridiculous things we spend our money on.

- President Obama revealed his long-awaited budget on Wednesday, proposing the addition of $8.2 trillion in new debt, $1.1 trillion in new taxes, and only $119 billion in “deficit reduction,” according to the House Budget Committee. With these jokes for numbers, we are clearly not fans.

-And, finally, the U.S. Government Accountability Office released its duplication report on tens of billions of dollars in taxpayer money that could be potentially saved through the elimination of duplicate programs. This comes after the efforts of taxpayer heroes like Senator Tom Coburn who has been leading the charge against government waste for his entire career.

This budget battle will not be short and we’ll be providing updates and commentary along the way. In the interim, feel secure in the knowledge that our government is spending your hard earned cash on figuring out what’s on your Golden Retriever’s mind.

This week, Ending Spending was proud to join with Americans for Tax Reform and forty-one other taxpayer-friendly organizations in urging Congress to create a Committee to Reduce Government Waste.

In a Congress whose committees generally focus on growing government, it just seems natural that one should focus on shrinking it. A body authorized only to cut spending, such a committee would mimic the mid-20th century effort that was successful in rolling back many parts of the New Deal. Just as the continuation of New Deal programs threatened to overwhelm our economy back then with unsustainable debt, our current climate of out-of-control spending and government expansion demands a similar solution.

You can read the full letter sent to the House and Senate Republicans leading the charge on this effort by visiting this link.

The Wall Street Journal this week posted a great visualization of the makeup of the federal budget since 1965. Its conclusions are no surprise, but it’s important to be reminded from time to time of the seismic shifts that are defining the spending battle in the years to come:

- Since 1965, so-called “mandatory spending” ** (Medicare, Medicaid, and Social Security) has risen from 6.14% of GDP to just under 20% in 2013, becoming along the way the single largest component of federal outlays.

- “Discretionary spending” has changed, too — while defense spending has traditionally dominated the category, domestic spending like cost related to implementing Obamacare has recently taken over.

You can see the Journal’s charts by visiting this link.

* Here at Ending Spending, we don’t like the terms “mandatory spending” and “discretionary spending”. No spending is truly mandatory - just another choice made along the way by our government.

Under President Obama, the national debt has increased by $6 trillion. By the time young people - known in many discussions as “millennials” - reach retirement are, the debt will be nearly 250% of our country’s GDP.

In a special opinion piece in Politico, Representative Cathy McMorris Rodgers, Jaime Herrera Beutler, Adam Kinzinger, and Aaron Schock share their thoughts on why the path we’re on is “unacceptable and unsustainable”.

Millennials Fight For Future With Own War on Debt
By Rep. Cathy McMorris Rodgers, Rep. Jaime Herrera Beutler, Rep. Adam Kinzinger, and Rep. Aaron Schock
Politico

Last week, in one of the liveliest and most thought-provoking conversations we’ve had in this Capitol, we sat around the table with a group of young people who care deeply about solving our nation’s debt crisis. These “millennials” — representing myriad socioeconomic backgrounds, ethnicities, college campuses and political persuasions — all want the same things: a solution to our national debt. A reduction in the out-of-control spending they’ll be forced to pay back one day. And an acknowledgment that if Congress keeps kicking the can down the road, then they will kick right back.

And that is exactly what they have done. They came to Capitol Hill with suggestions, solutions and an eagerness to get involved in an issue that disproportionately affects their generation. Representing several organizations — The Can Kicks Back/Fix the Debt, National Campus Leadership Council, Common Sense Action, Concerned Youth of America, and Public Notice/Bankrupting America — they addressed the impact of the national debt on their generation and how Washington’s spending problem today will hurt America’s youth tomorrow.

We heard from one woman who recently graduated from college — eager and excited about the opportunities before her — only to be told that she should expect no less than five years of unemployment. A young man with a 2-year-old daughter told us that he is already afraid he won’t be able to put her through college. And a University of Maryland sophomore said she can’t afford to go to graduate school for fear of being saddled with even more debt than she is right now.

Unfortunately, their challenges are not unique and their experiences are not uncommon. These young people are the next generation of American leaders — they’re college students, campus leaders, budding entrepreneurs, future economists, innovators, scientists, nurses, business leaders and doctors. But a major obstacle stands in their way: the national debt. It’s more than just a $16 trillion price tag. It’s more than just a number that continues to rise under President Barack Obama. It’s a threat to the future of our children and grandchildren. In fact, when asked recently to identify the greatest threat to our national security, Adm. Mike Mullen, then chairman of the Joint Chiefs of Staff, cited our national debt.

Read the entire article here.

* Written with Ned Ryun, RedState

As the eyes of the nation turn to key state races in 2013 – New Jersey and Virginia – the issues of fiscal responsibility and economic growth will be a yardstick for how voters measure candidates. This year, Virginia will play a critical role in the ongoing national discussion of how we reverse the massive growth of the federal government and begin to solve the problem of out-of-control government spending.

One thing is certain: we need strong, principled, innovative new leaders not only in Washington, but also in our state capitals—leaders who will attack fiscal problems head-on by reforming faulty tax codes and broken spending mechanisms, not just nibble around the edges. We need leaders who will take the fight directly to the political establishment and disrupt the ruling class which has failed our country so badly.

In 2012, American Majority Action and Ending Spending – non-partisan advocacy groups dedicated to reducing excessive government spending and waste, and restoring responsible spending practices in government – went to great lengths to support Governor Scott Walker and Lieutenant Governor Rebecca Kleefisch in Wisconsin. As we said during the Wisconsin recall elections, “courage” was on the ballot.

For voters in 2013, the only real game in the country is in Virginia – and we’ve decided to team up again to help a brave and bold ticket win. Ending Spending and American Majority Action whole-heartedly endorsed Attorney General and GOP nominee Ken Cuccinelli for Governor. As regular Red Staters know, Cuccinelli is a champion for American families, small businesses and other liberty-minded people. Cuccinelli led the effort against Obamacare, and is one elected official who truly understands the importance of organizing and mobilizing the grassroots. But we’re not stopping there.

Given the tie in the Virginia State Senate – where current Lieutenant Governor Bolling at times votes with Democrats to stop practical reforms pushed by Governor McDonnell – future Governor Cuccinelli will need a courageous Lt. Governor. We think we’ve found what amounts to a great draft pick—in Virginia entrepreneur Pete Snyder, part of the important next generation of leaders who will get us back on the path of fiscal responsibility. A technology executive who pioneered the industry of social media marketing, Pete is making his first run for office, seeking the position of Lieutenant Governor in Virginia.

In a crowded field for the Republican nomination, Pete Snyder is the lone stand-out. Pete is a rare breed: he’s not another career politician—he’s an innovator and job creator, who has also supported smart policies and the right candidates for nearly twenty years, including as Governor McDonnell’s choice to run the Virginia grassroots effort in 2012. Pete’s experience growing jobs in the private sector makes him the best qualified candidate to be Virginia’s next Lieutenant Governor.

Pete is the real deal—and he’s proving it every day by running a campaign that is challenging the status quo. In the past few weeks, Snyder, a former college wrestler, showed that he’s unafraid to call the political class and career politicians out on the mat for their failures. Snyder took Virginia’s liberal Senate Democrat Leader to task for holding citizens hostage to insider political games. (Angered at being outmaneuvered by Senate Republicans, the top Senate Dem declared that he would retaliate by blocking critical work during the current legislative session). Snyder’s leadership earned him the ire of Richmond liberals, who angrily attacked him as “some nut job.”

The Virginian-Pilot correctly notes that Snyder’s show of leadership is “a score” for his campaign, demonstrating “to the Senate Republican Caucus he hopes to preside over next year that he’ll give them political cover when needed.” In other words, Snyder is going to stand strong on his common sense principles, and help others in Richmond do the same—and that is precisely what Virginia (not to mention every state in our country) needs right now. We agree with Erick and believe strongly that Pete is the best candidate to run alongside and complement Cuccinelli.

Ken and Pete’s demonstrated records as principled, effective leaders make them a great team to lead Virginia. We hope you will join us in supporting these candidates, and encourage you to join learn how to become delegates for both Ken and Pete at the Republican Party of Virginia’s nominating convention this May.

For all the talk of “revenues” and new taxes proposed by those on the left, it’s hard to have a discussion about our nation’s fiscal health without tackling the gigantic elephant in the room: the sheer enormity of federal spending.

Fighting back in that messaging war with elegant simplicity is again Rep. Paul Ryan, who summarized his argument in one simple chart during his appearance yesterday on Meet the Press. Watch the video, share it with your friends, and be sure to retweet with the hashtag #SpendingIsTheProblem

While Ending Spending’s work two years ago led to the current temporary ban on Congressional earmarks, the ban is still voluntary. Should Members of Congress one day be tempted to go back on the public dole, nothing in current law would stop them.

That’s why we’re extremely excited to see Claire McCaskill join Pat Toomey, both longtime taxpayer heroes and opponents of earmarks, to reintroduce the bipartisan Earmark Elimination Act, a much-needed piece of legislation that would permanently make pork-barrel spending a thing of the past.

Ending Spending is proud to stand with Senators McCaskill and Toomey on this important piece of legislation. We’ll keep you updated on its progress.

Ending Spending – a nonpartisan advocacy group dedicated to reducing excessive government spending and waste, and restoring responsible spending practices in government – today endorsed fiscal conservatives Attorney General Ken Cuccinelli for governor and entrepreneur Pete Snyder for lieutenant governor in Virginia’s 2013 gubernatorial race.

“As the eyes of the nation turn to key gubernatorial races, the issue of economic responsibility will be a yardstick for how voters will measure up candidates, and Virginia will play a critical role in the ongoing national discussion of how we solve the problem of growing state and federal debts,” said Brian Baker, president of Ending Spending. “Ken Cuccinelli and Pete Snyder recognize that our country cannot get on the path to prosperity with bigger government and more spending and debt.”

Baker added, “We were proud to work with Attorney General Cuccinelli on the legal fight against Obamacare, which contains over a trillion dollars in new spending over the next ten years. And Pete Snyder is a highly successful innovator and job creator who knows that the only way to stop saddling future generations with crushing debt is to create long-lasting economic growth. Their demonstrated records as conservative leaders make them a great team to lead Virginia.”