December 10th, 2010, Fairfax, VA—Americans for Limited Government (ALG) President Bill Wilson today issued the following statement on the likely $1.5 trillion deficit that will be left behind by the Obama-McConnell tax deal:
"The $1.5 trillion likely deficit left behind by the tax deal reveals the dire need to balance the budget with spending cuts. A recent International Monetary Fund study shows that successful fiscal consolidation programs globally have relied primarily on spending cuts, not tax increases. And especially since there is a strong bipartisan consensus not to have any tax increases in the midst of a severe economic downturn, that means the budget can only be balanced now, and the $13.8 trillion debt reined in, with spending cuts.
"Unfortunately, when this deal was first presented, it was commonly understood to contain an unpaid-for $56 billion extension of unemployment benefits and a $120 billion cut in payroll taxes on employees. Without offsetting budget cuts presented alongside these budget-busters, the deal was bad enough. But now Harry Reid is busy inserting provisions extending hundreds of billions of dollars of tax credits, corporate welfare subsidies, and other handouts from the 2009 Obama 'stimulus' program. These include ethanol subsidies, windmill subsidies, and other so-called 'green' programs that have nothing to do with creating the conditions for a sustainable economic recovery. It even includes extension of tax deductions for public school teachers. Enough is enough.
"This is all unacceptable to the American people, and it should be unacceptable to Senate Republicans, who never agreed to lift their filibuster so that already-failed 'stimulus' measures could be extended as a means of passage. Over $650 billion of this now-$990 billion package has nothing to do with preventing imminent tax rate hikes on all Americans, as revealed today by columnist Charles Krauthammer. It has everything to do with holding the economy hostage to get as much wasteful spending as possible.
"Senate Republicans must hold the line and not be afraid to reject this bill that has become a Christmas tree monster of handouts, kickbacks, and other favors that they never agreed to in the first place. The American people voted for spending cuts in November, not a trillion dollar boondoggle. The imminent tax increases on all Americans need to be prevented, but not at the cost of the nation's very fiscal solvency. Where are the spending cuts the American people were promised?"