Today, President Obama released the budget for fiscal year 2011, amidst an economy that is in a downward spiral and during a time when more Americans are losing jobs. This budget plan promises to reverse the declining economy by implementing a new job creation program, along with expanding Medicaid and ending programs that do not work.
So, how will this budget plan impact Virginia? According to the Office of Management and Budget (OMB), Virginia stands to gain tax reductions for 2.9 million families, $1 Billion for public schools (including teacher salary increases, classroom spending, etc.), providing funds for transportation improvements, and providing grants for housing assistance.
Republican Whip, Rep. Eric Cantor (R-Va.) released a statement criticizing President Obama’s budget. Other Republicans, like Rep. Mike Pence (R-Ind.) have also joined in with the criticisms.
Just days ago, the President met with House Republicans and stressed the need to work together on fiscally responsible policy, and though we are ready to heed the President’s call, the budget proposal his Administration offered today does not fit that criteria. The President’s budget spends more than any other in history, creates the largest deficits in history, and imposes the largest tax increases in history – at a time when our country can least afford it. Small businesses and job creators simply cannot afford the massive Obama tax increases included in this budget and be expected to hire more workers.
“Economists, small business owners, and families across America understand that, at a minimum, we should not raise taxes while so many Americans are out of work. Yet Speaker Pelosi and House Democrats are already making clear that controlling spending is a non-starter, so today’s baseline is likely to get even more costly for the next generation that will be asked to pay for it.
“During his campaign, the President pledged to go line-by-line through the budget to eliminate waste, fraud, and unnecessary spending. Republicans take the President at his word, and stand ready to get to work on efforts to stop out-of-control Washington spending. Freezing spending next year is a step in the right direction, but one that is far too small considering the fiscal situation we face.
“Republicans continue to offer serious policy alternatives to revitalize small business, rejuvenate our economy, and leave our children with a more prosperous and financially secure America. We understand that tough decisions, like those made by families every day, will be required. We are ready to lead and face this challenge head on.”
It is hard for America to gain prosperity with a $1.267 Trillion deficit. Perhaps, President Obama should address ways to reduce spending and to focus on paying off the debt before implementing costly initiatives.
