Dems Vote for More Taxes & Failed Stimulus Spending Instead of Real Fiscal Reform

April 15, 2011

FYI, a similar version of this release below went out to the following districts: Sanford Bishop (GA-02), Tim Bishop (NY-01), Leonard Boswell (IA-03), Bruce Braley (IA-01), Russ Carnahan (MO-03), Gerry Connolly (VA-11), Mark Critz (PA-12), Raul Grijalva (AZ-07), Martin Heinrich (NM-01), Brian Higgins (NY-27), Jim Himes (CT-04), Maurice Hinchey (NY-22), Ruben Hinojosa (TX-15), Tim Holden (PA-17), Rush Holt (NJ-12), Jay Inslee (WA-01), Steve Israel (NY-02), Bill Keating (MA-10), Dale Kildee (MI-05), Rick Larsen (WA-02), David Loebsack (IA-02), Carolyn McCarthy (NY-04), Jerry McNerney (CA-11), Michael Michaud (ME-02), Brad Miller (NC-13), Bill Owens (NY-23), Frank Pallone (NJ-06), Ed Perlmutter (CO-07), Collin Peterson (MN-07), Chellie Pingree (ME-01), David Price (NC-04), Nick Rahall (WV-03), Loretta Sanchez (CA-47), Adam Smith (WA-09), Betty Sutton (OH-13), John Tierney (MA-06), Niki Tsongas (MA-05), Tim Walz (MN-01), Anthony Weiner (NY-09), David Wu (OR-01), John Yarmuth (KY-03)

Boswell Votes for More Taxes & Failed Stimulus Spending Instead of Real Fiscal Reform
Iowa Democrat’s Plan Would Also Lead Medicare to Bankruptcy with Catastrophic Results

Washington — Leonard Boswell today doubled down on his fellow Democrats’ failed policies when he voted for the House Democrat budget plan which does not solve the fiscal problems they created. The Boswell plan proposes job-destroying tax hikes, piles on more stimulus spending and slashes military funding. Worse still, Boswell’s plan bankrupts Medicare, which would require immediate payroll tax increases on all American workers or major slashes to benefits for seniors in the program. Clearly, Boswell’s vote today was a ringing endorsement for protecting the broken, unsustainable Democrat policies of the past.

“Leonard Boswell today sold out Iowa middle-class families when he voted for a bloated budget plan to hike job-destroying taxes, introduce new stimulus spending and slash military spending,” said NRCC Communications Director Paul Lindsay. “In addition, Boswell’s Democrat plan pushes Medicare further down the road to bankruptcy, which results in payroll tax increases on all American workers or slashing benefits for all seniors. Boswell seems committed to defending the failed Democrat agenda of more spending and more borrowing from countries like China, regardless of the catastrophic results for Iowa families.”

The Democrat budget plan relies mainly on major cuts to the military, as well as tax hikes on small businesses, while imposing new stimulus spending:

“To achieve the cuts, Democrats look hard at the Pentagon. Part of the additional savings comes from spending $308 billion less on security and defense over 10 years. It also cuts $309 billion from overseas contingency spending, assuming that the U.S. is out of Iraq by the end of 2011 and Afghan forces are in charge of the war there by 2015. Other details on how the Van Hollen alternative achieves the extras savings were unclear ….The budget would increase funding for food stamps and for infrastructure spending.” (Erik Wasson, “House Dems roll out alternative budget with focus on defense cuts,” The Hill‘s On The Money Blog, 4/13/11)

“House Democrats, led by Rep. Chris Van Hollen, unveiled a $3.68 trillion budget proposal Wednesday that would cut billions of dollars in defense spending while increasing taxes on the wealthy in an effort to reduce the nation’s spiraling budget deficits by 2018.” (John Fritze, “Van Hollen takes the lead in Democratic budget effort,” The Baltimore Sun, 4/13/11)

It also allows Medicare to go bankrupt, unlike competing plans which seek to save and strengthen the program for future generations:

“The Democratic proposal does not fundamentally address the spiraling cost of entitlement programs — particularly Medicare — which both parties say are the leading contributors of future deficits.” (John Fritze, “Van Hollen takes the lead in Democratic budget effort,” The Baltimore Sun, 4/13/11)

Medicare will go bankrupt in 2029 on its current path, which will require a 23% payroll tax hike on all working Americans or a 15% slash in benefits for those relying on the plan:

“The projected HI deficit over the next 75 years is 0.66 percent of taxable payroll, down from last year’s estimate of 3.88 percent. Eliminating this deficit would require an immediate 23 percent increase in payroll taxes or an immediate 15 percent reduction in benefits—or some combination of the two. Delaying action would require more drastic tax increases or benefit reductions in the future.” (“Issue Brief: Medicare’s Financial Condition: Beyond Actuarial Balance,” American Academy of Actuaries, Nov. 2010)

Despite that, Leonard Boswell voted for this Democrat budget plan. (H.Con. Res. 34, Van Hollen Substitute Amendment No.5, Roll Call Vote #276, Failed 166-259: R 0-236; D 166-23, 4/15/11)

Leonard Boswell again demonstrated that he will continue to follow his fellow Democrats down the road to fiscal ruin with this budget plan that raises job-destroying taxes, piles on new stimulus spending, and lets Medicare go bankrupt with disastrous results. Clearly, Boswell and his Democrat colleagues are going to keep his Iowa constituents waiting for a serious plan to address the problems they helped create.

Dems Vote for More Taxes, Failed Stimulus Spending and Would Let Medicare Go Bankrupt http://ow.ly/XXXXX #MadeinWDC

###