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The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

Democrats Yearly Deficit Spending 6.5 Times Higher than Republicans. Democrats Pork Spending 50 Times Higher – UPDATED!

Posted by iusbvision on December 20, 2010

UPDATE – The Treasury just released new numbers. This is truly staggering. What do we have to show for all this madness?

2010 YEARLY DEFICIT: $2.08 Trillion. That is 10 times higher than the last year Republicans had budgetary control.

CNS News reported:

When Rep. Nancy Pelosi (D-Calif.) gave her inaugural address as speaker of the House in 2007, she vowed there would be “no new deficit spending.” Since that day, the national debt has increased by $5 trillion, according to the U.S. Treasury Department.

“After years of historic deficits, this 110th Congress will commit itself to a higher standard: Pay as you go, no new deficit spending,” Pelosi said in her speech from the speaker’s podium. “Our new America will provide unlimited opportunity for future generations, not burden them with mountains of debt.”

Pelosi has served as speaker in the 110th and 111th Congresses.

So much for that promise.

Byron York of the Washington Examiner:

Press coverage of the budget frenzy on Capitol Hill has suggested that pork-barrel earmark spending is still a bipartisan problem, that after months of self-righteous rhetoric about fiscal discipline, Republicans and Democrats remain equal-opportunity earmarkers.It’s not true. A new analysis by a group of federal-spending watchdogs shows a striking imbalance between the parties when it comes to earmark requests. Democrats remain raging spenders, while Republicans have made enormous strides in cleaning up their act. In the Senate, the GOP made only one-third as many earmark requests as Democrats for 2011, and in the House, Republicans have nearly given up earmarking altogether — while Democrats roll on.

The watchdog groups — Taxpayers for Common Sense, WashingtonWatch.com, and Taxpayers Against Earmarks — counted total earmark requests in the 2011 budget. Those requests were made by lawmakers earlier this year, but Democratic leaders, afraid that their party’s spending priorities might cost them at the polls, decided not to pass a budget before the Nov. 2 elections. This week, they distilled those earmark requests — threw some out, combined others — into the omnibus bill that was under consideration in the Senate until Majority Leader Harry Reid pulled it Thursday night. While that bill was loaded with spending, looking back at the original earmark requests tells us a lot about the spending inclinations of both parties.

In the 2011 House budget, the groups found that House Democrats requested 18,189 earmarks, which would cost the taxpayers a total of $51.7 billion, while House Republicans requested just 241 earmarks, for a total of $1 billion.

Where did those GOP earmark requests come from? Just four Republican lawmakers: South Carolina Rep. Henry Brown, who did not run for re-election this year; Louisiana Rep. Joseph Cao, who lost his bid for re-election; maverick Texas Rep. Ron Paul; and spending king Rep. Don Young of Alaska. The other Republican members of the House — 174 of them — requested a total of zero earmarks.

Talk to Republicans, and they’ll say it would be nice if there were no earmark requests at all, but party leaders can’t control everybody. “Brown’s retiring, Cao’s defeated, Paul is Paul and Young is Young,” one GOP aide shrugs. Still, the bottom line is that the House GOP’s nearly perfect renunciation of earmarks is striking. “For a voluntary moratorium, it was impressive that there were only four scofflaws,” says Steve Ellis of Taxpayers for Common Sense.

The Senate is a different story. But even though some Republicans are still seeking earmarks, Democrats are by far the bigger spenders. The watchdog groups found that Democrats requested 15,133 earmarks for 2011, for a total of $54.9 billion, while Republicans requested 5,352 earmarks, for a total of $22 billion.

If you look at the top 10 Senate earmarkers as measured by the total dollar value of earmarks requested, there are seven Democrats and three Republicans. (The leader of the pack is Democratic Sen. Mary Landrieu, who requested $4.4 billion in earmarks.) The three Republicans are Sens. Roger Wicker, Sam Brownback and Thad Cochran. One of them, Brownback, is leaving the Senate, while the other two are from Mississippi, which is apparently earmark heaven.

IUSB Vision Editor Commentary:

Isn’t it interesting that the only time you hear about “deficits” from the Democrats and the elite media is when they want to raise tyour taxes? Then the Democrats drop a 1.1 trillion dollar spending bill in the hopper near the end of a lame duck session and what do we hear? The  ….chirp….chirp….chirp… of crickets in the silence.

As the Deficit Commission has rightly pointed out tax rates need to be lowered for most individuals and businesses because the higher the rate the less the compliance, the higher the rate the more wealth goes overseas, the higher the rate the fewer will take risk, the higher the rate the less small businesses can hire. The simple truth is that the wealthy and upper middle class can take money and park it in a tax free growth account and leave it there. They have the option of not moving their money thus it cannot be taxed. It is for these reasons it is economic growth that generates real revenue, not high tax rates.

You heard the rhetoric all over the elite media and from the Democrat leadership, “If we don’t raise taxes on the “rich” the government will lose half a trillion dollars a year in revenue”. That entire narrative is a canard for the following reasons.

There are very few wage earners who make $250,000 a year.

The way the tax code is set up the majority of people who pay the top marginal tax rate and not individuals at all, but are Sub-S small businesses with 5 – 200 employees.

The half a trillion dollar number is generated from a series of formula’s that make up what is known as the “static Keynesian model”. These models not only are not accurate, but usually are not even clos,e as they do not account for changes in behavior that result from people changing the rules. For example: the government taxes every cheese burger 100 dollars. Since America consumes a billion cheese burgers a year the government estimates that the tax revenue will be $100 billion dollars.

Of course this leaves out the obvious, who would buy a cheeseburger of the government taxed each one $100? So along comes a Republican who proposes to lower the tax to $50 per cheese burger; along comes the media and the Democrats to cry that the tax cuts are costing the government $50 billion a year! Quite dishonest isn’t it?

Lowering tax rates resulted in increased revenue under Coolidge, Kennedy, Reagan, Clinton (second term tax cuts), and Bush II.

2 Responses to “Democrats Yearly Deficit Spending 6.5 Times Higher than Republicans. Democrats Pork Spending 50 Times Higher – UPDATED!”

  1. Jim McWhorter said

    It would be more interesting if you would look at the Republican vs. Democrat deficits since the 70’s. If your mind can comprehend the trend the average Republican administration has had a deficit of twice that of the Democrats. Your passion for the past two years is admirable but its like inheriting an automobile that had no maintenance for eight years and being asked to “refresh” it.

    Jim McWhorter

    **************************************************************************
    IUSB Vision Editor responds

    Jim you are leaving out several fundamental truths. My parents taught me that telling a half truth is the same thing as telling a lie.

    First of all, the Democrats spent 1.83 for every new dollar that came in under Reagan. With the cold war and the nuclear triangle in effect Reagan could not have a govt. shutdown. Government revenue doubled under Reagan. If he had control of Congress during his tenure the deficit would not have been much of a problem. Reagan only had two years where he had great party influence in both houses. The rest of the time he used the American people to lean on Congress to get some of what he wanted.

    Keep in mind that Bush was handed a recession, 9/11, the tech bubble crash, a tax increase in the form of a tax cut that sunset just before he took office, the DHS govt. reshuffle, Katrina, and two wars. In spite of all of that the Deficit dropped rapidly during Bushes final years in office where the GOP had budgetary control.

    Here are the facts:

    The tax cut rate reduction increased revenue, they did not decrease it. A reduction in the rate does not mean a reduction in the revenue. Reduced rates promote increased tax compliance and give an incentive for the wealthy and investors and savers to actually move their money so it can be taxed. Remember these people can buy a 10 year treasury or a block of silver or just invest the money overseas and not repatriate the profits. This is why the Obama Deficit Commission recommended a simpler and flatter tax code with lower rates for all, and a lower corporate tax rate.

    By the way, the revenue shot up under Clinton largely because under the Gingrich/Clinton budget deal the capital gains tax rate was cut significantly and as a result money that people were unwilling to move became freed up and the result was an explosion in government revenue.

    So why did we have a mild recession at the end of the Clinton term? There were a number of factors:

    1 – The capitral gains tax cuts had a sunset provision.

    2 – Clinton near the end of his term put out regulations that send feul prices soaring and other give aways to the radical environmental lobbgy.

    3 – The “tech bubble” burst causing a new stock market crash.

    4 – 9/11 happened shortly after Bush came into office.

    By the way, as Bush was leaving office the yearly deficits were still dropping till Nancy Pelosi and the Democrats took the House. The yearly deficit in 2007 was only 198 billion dollars. The Democrats have put up 1.3 to 1.6 TRILLION in YEARLY deficit spending since Obama was elected.

    Back to the tax cuts increased the revenue and lowered the deficit. Please examine the evidence below.

    *****

    Reducing the capital gains tax rate from 20% to 15% increased capital gains tax receipts by 79% from 2000 to 2004. Cutting the dividend tax rate by more than half–from 39.6% to 15%–increased dividend tax receipts by 35% from 2002 to 2004. And corporate tax receipts have nearly tripled since 2003, reaching $250 billion for the past nine months, 26% higher than the same period last year. (WSJ July 25, 2006)

    *****

    WASHINGTON — The federal deficit in the budget year that just ended fell to a four-year low of $247.7 billion _ a figure President Bush touted Wednesday as “proof that pro-growth policies work.” The deficit for the budget year that ended Sept. 30 was 22.3 percent lower than the $318.7 billion imbalance for 2005, handing Bush a welcome economic talking point as Republicans battle to hold onto control of Congress in the midterm elections. (AP Oct. 11, 2006)

    *****

    One place it has come from are corporations, whose tax collections have climbed by 76% over the past two years thanks to greater profitability. Personal income tax payments are up by 30.3% since 2004 too, despite the fact that the highest tax rate is down to 35% from 39.6%. The IRS tax-return data just released last month indicates that a near-record 37% of those income tax payments are received from the top 1% of earners — “the rich,” who are derided regularly in Washington for not paying their “fair share.” (WSJ Oct. 6 2006) – The rich are paying more in real dollars since the tax cuts.

    *****

    US Treasury Sets New 1-Day Tax Receipt Record Of $85.8 Billion
    Tuesday September 19th, 2006 / 0h04

    WASHINGTON -(Dow Jones)- The U.S. government recorded record-high overall and corporate tax receipts on Sept. 15, which was a quarterly deadline for tax payments, the Treasury said Monday.
    Total tax receipts were $85.8 billion on Friday, compared with the previous one-day record of $71 billion on Sept. 15 of last year, the Treasury said.
    Within the overall figure, corporate tax receipts Friday were $71.8 billion, up from $63 billion in September of last year.

    Treasury Undersecretary for Domestic Finance Randal Quarles said Friday’s numbers provided a “continuing demonstration of the strength of the U.S. economy.”
    “In fact, Friday’s gross receipts were the largest in a single day in the nation’s history – 20% higher than receipts on the same quarterly tax payment date last year,” Quarles said in a statement.

    *****

    October 27, 2006 at 10:30 pm
    Laffer’s Victory – July 10, 2006 – The New York Sun
    July 10, 2006 Edition
    Laffer’s Victory
    New York Sun Staff Editorial
    July 10, 2006

    It’s official — Arthur Laffer wins. New data show federal revenues surged in the first three quarters of the current fiscal year. Corporate tax receipts are up more than 26% over the same period last year, ringing in at $250 billion. Individual income tax collections, at $791 billion, are up 14% over the first nine months of fiscal 2005. The Congressional Budget Office projects corporate tax receipts will total $330 billion by the end of the fiscal year. As a result, the deficit for the year is expected to be about $300 billion, down from $318 billion last year and $412 billion the year before.

    What, you ask, has led to this miraculous event? A tax cut, it turns out. Or rather, an array of tax cuts, on corporate income, personal income, and capital gains. These tax cuts, passed in 2001 and 2003, appear to be having the desired effect of spurring economic growth by creating addition incentives for work and entrepreneurship. The latest numbers, moreover, offer some hard data to challenge some of the charges leveled against President Bush and congressional Republicans in respect of tax cuts. These tax cuts haven’t exactly benefited “the rich.” A third of those higher income-tax revenues came from the highest-earning 1% of households, according to the New York Times.

    *****

    Budget Deficit Drops $296B Under Estimate
    Jul 11, 11:01 AM (ET)
    By ANDREW TAYLOR
    My Way News

    WASHINGTON (AP) – President Bush touted new deficit figures Tuesday showing considerable improvement upon earlier administration predictions, saying it shows the wisdom of his tax cuts.
    Bush himself announced the figures – a task that for the most part has been left to lower-ranking administration officials in the past. The new figures show the deficit for the budget year ending Sept. 30 will be $296 billion – much better than the $423 billion that Bush predicted in February and a slight improvement over 2005.

    *****

    October 27, 2006 at 10:33 pm
    Surprising Jump in Tax Revenues Is Curbing Deficit – New York Times
    By EDMUND L. ANDREWS
    Published: July 9, 2006

    WASHINGTON, July 8 — An unexpectedly steep rise in tax revenues from corporations and the wealthy is driving down the projected budget deficit this year, even though spending has climbed sharply because of the war in Iraq and the cost of hurricane relief.

    White House officials are expected to announce that the tax receipts will be about $250 billion above last year’s levels and that the deficit will be about $100 billion less than what they projected six months ago. The rising tide in tax payments has been building for months, but the increased scale is surprising even seasoned budget analysts and making it easier for both the administration and Congress to finesse the big run-up in spending over the past year.
    Tax revenues are climbing twice as fast as the administration predicted in February, so fast that the budget deficit could actually decline this year.

    *****

    A flood of income tax payments pushed up government receipts to the second-highest level in history in April, giving the country a sizable surplus for the month. In its monthly accounting of the government’s books, the Treasury Department said Wednesday that revenue for the month totaled $315.1 billion as Americans filed their tax returns by the April deadline. The gusher of tax revenue pushed total receipts up by 13.4 percent from April 2005. (AP May 10, 2006)

    ******

    WASHINGTON, July 8 — An unexpectedly steep rise in tax revenues from corporations and the wealthy is driving down the projected budget deficit this year, even though spending has climbed sharply because of the war in Iraq and the cost of hurricane relief. (NYT July 9, 2006)

    As the graphic above shows, in spite of the 9/11 recession which was amplified by the recession Bush inherited, and the national security spending that took place after 9/11 and two wars, the economy had grown so much that in spite of those expenses the deficit started coming back down in a relatively short time due to increased revenue.

  2. texas court reporter said

    It’s hard to come by well-informed people on this topic, however, you sound like you know what you’re talking about!
    Thanks

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