TPA Responds to the White House FY 2015 Budget Release:
Today, President Obama unveiled his Fiscal Year (FY) 2015 budget. The FY 2015 budget is a month late (which has become a tradition for this President) and trillions of dollars short of fiscal responsibility. The President continued his preference for spending more with a budget proposal that spends $3.9 trillion, which is an increase from the $3.8 trillion the federal government is planning to spend in FY 2014. The White House budget aims to confiscate more money from taxpayers and small business owners to fund a laundry list of big government programs disguised as “stimulus” and “infrastructure.” These new spending priorities are sure to be filled with waste and inefficiency, much like many of the programs funded by the 2009 stimulus package... Even though this is only the opening salvo in the budget war for this year, it is instructive to see that the President clearly doesn’t recognize the fiscal reality of a $17 trillion debt and an economy that remains stagnant. There is no way for taxpayers and entrepreneurs to succeed unless the White House gets serious on spending restraint and tax reform. This budget does neither and with no meaningful offers to cut spending, overhaul the tax code, or reform entitlements, this budget is simply a way to double down on the failed policies of big government spending that have been a hallmark of the Obama Presidency. There should be a clear path to fiscal responsibility through meaningful spending reductions and tax reform. That is clearly not the approach from this White House based on what we have seen today.
A public comment was submitted yesterday by the Taxpayers Protection Alliance regarding the new proposed rule which aims to codify political targeting that the IRS engaged in over a period of the previous two elections. The deadline for comment submission regarding this rule is Thursday, February 27, 2014 at 11:59 PM EST. TPA encourages everyone to go to this link and submit a comment. This was also the topic of discussion in the second half of TPA's podcast 'Taxpayer Watch' yesterday, you can listen here.
The Obama Administration is extremely aggressive when it comes to the issue of promoting and picking winners and losers. This attitude is most apparent when it comes to the energy industry. The Obama administration has been “all-in” when it comes to green energy scams like Solyndra. Their push for more LEED certification of federal buildings is just another way that special interests are promoted in the Obama presidency, regardless of the cost-benefit ration for. Last Fall, TPA wrote about the Obama Administration’s new regulatory push called ‘social cost of carbon’ and how the President (as he has done many time before) was using federal agencies to carry out policies through regulatory means that he would otherwise not be able to get through congress. According to Reason, the social cost of carbon refers to “the economic and ecological damage caused each time we add a ton of carbon dioxide to the atmosphere by burning fossil fuels.” The hitch is that is the figures were put together in 2010 by the White House Interagency Working Group using questionable computer models and outdated information with which projections were being based upon to reach a cost assessment. The original estimation by the group and agreed upon by the Administration was recently revised upwards setting off a chain reaction that has put this issue at the forefront in Congress as many members view this as just another way to burden businesses, consumers, and taxpayers with needless and counterproductive regulations. Now, a new report released by the American Coalition for Clean Coal Electricity has completely ripped apart the narrative that the White House has tried to stick with when it comes to their ‘social cost of carbon’ program.
In his fifth State of the Union address, President Obama reiterated familiar themes that have resulted in a slow economic recovery over the past 5 years. In a new and reckless move, President Obama promised to use his Executive power to enact initiatives that Congress wouldn’t pass such as a move to increase the minimum wage for federal contractors. This establishes a bad precedent that circumvents the system of checks and balances. The biggest missed opportunity was that there was no mention of how to rein in government spending. In fact, the President seemed to suggest more spending on projects that could be classified as corporate welfare when noted that, “Federally-funded research helped lead to the ideas and inventions behind Google and smartphones. That’s why Congress should undo the damage done by last year’s cuts to basic research so we can unleash the next great American discovery – whether it’s vaccines that stay ahead of drug-resistant bacteria, or paper-thin material that’s stronger than steel.“ One of the most bizarre parts of the President’s speech was his attack on last year’s sequestration (automatic spending cuts). The President signed the Budget Control Act of 2011 which created sequestration. If the President didn’t like sequestration, he shouldn’t have signed it into law. Now, he has been left with no real plan to cut spending. President Obama mentioned Obamacare and the millions that have enrolled since the launch. Obama did not mention the hundreds of millions of dollars spent on a broken website or the millions of Americans that lost their healthcare insurance due to Obamacare. Millions of Americans found out the hard way last year that President Obama’s promise that “if you like your healthcare coverage, you can keep it,” was just a good talking point and not the truth.
Tonight President Obama will give his fifth State of the Union address to the nation. This will give the President an opportunity to lay out his agenda for the coming year in front of Congress and the American people. Year after year we see a laundry list of policies that spend more taxpayer money and attempts to rally the President’s base behind ideas that go nowhere fast. Even though there are many topics that taxpayers would like to be addressed such as the failed roll out of Obamacare or a debt that has eclipsed $17 trillion and the numerous ways to cut spending, one topic that may receive bi-partisan support is tax reform. The US corporate tax rate is the highest in the world and our entire US tax code grows more complicated as each year sees new rules and regulations burdened upon the taxpayers who are in desperate need of relief from a system that hasn’t had comprehensive reform in nearly three decades. This year is a prime time for tax reform to take shape and there’s no better time to set the tone for meaningful, comprehensive, and bipartisan reform than with the State of the Union. Congress will be in attendance and many of the key players in the tax reform debate will be paying careful to attention to what the President will say.
(Joe Jansen has a decade and a half of experience working as a staff member on Capitol Hill. He has worked in almost every legislative capacity in both the House and Senate. Joe will be a frequent contributor to TPA’s blog.) The State of the Union speech probably served an important governmental purpose at one time. After all, why would the Constitution require that the President, “from time to time give to the Congress information of the state of the union” if it didn’t? But, cultural changes and technological advances, among other things, have turned the State of the Union Address into what George Will accurately called in his latest column, “a tiresome exercise in political exhibitionism.” Congress returns from a week-long recess to receive the President for his annual State of the Union address on Tuesday night. There is no doubt that the first year of President Obama’s second term has not been his finest. His approval ratings are in the tank and, with the possible exception of immigration reform, his legislative agenda is unlikely to advance anytime soon. Tuesday’s speech is a way for the President to talk directly to the American people, in a setting designed for the most powerful man in the world, to gain their support of his vision for the United States. It happens to also be a great time to try to set the tone for the mid-term elections that will be held this November. The President and his Democratic friends running for re-election do not want this election to be about Obamacare, the President’s handling of events in Syria, the weak economy, or the number of unemployed Americans. They must run on issues they think are more favorable to their political survival. What are these issues?
ALEXANDRIA, VA – Today, the Taxpayers Protection Alliance (TPA) urged Congress to reject the $1.1 trillion Omnibus spending bill for fiscal year (2014). On Monday January 13 (unlucky for taxpayers),Congress released a 1,500-page spending bill crafted by House and Senate appropriators. There’s not much to praise when looking at both the substance of the bill and the manner in which it was delivered. In what has been a disappointing string of bipartisan agreement, taxpayers will once again be left on the hook for spending that likely includes programs that are neither needed nor wanted. Another problem with the appropriations bill is that the sequester was “altered” in way that reverses cuts on both domestic and Defense spending. The Omnibus also funds and increase for Head Start and Obamacare. Defense appropriations contains a $5 billion increase for the Overseas Contingent Operations (OCO) account, which is immunized from sequestration. The Ryan-Murray budget deal was just the beginning of the end for the sequester. We have now seen another “tweak” less than a month later that reverses automatic cuts agreed to by Congress and the White House just a few years ago.
The future of health care is one of the more pressing questions for the United States as Obamacare continues its implementation into the new year. With a disastrous rollout last fall that included a defective website and millions of policy cancellations for holders of private market insurance policies, the President and democrats in both chambers of congress can ill-afford a new slate of problems with a law they are solely responsible for in every way possible. Unfortunately, there is another aspect of Obamacare that is already causing havoc for millions of Americans and the problem is one that has the potential to impact millions more if not addressed responsibly. This problem is the real threat to the security of private information of individuals who use the healthcare.gov website to attempt to sign up for coverage under the federal health insurance exchange. Concerns about how secure the Obamacare website have been voiced long-before the October 2013 rollout of healthcare.gov and there were even some early signs that the information of users may not be totally protected in the federal exchange. Henry Chao, the Deputy Director and Deputy Chief Information Officer of Centers for Medicare & Medicaid Services (CMS), apparently was kept in the dark even though he was the administration’s point-man on the security of the website.
Several months have passed since taxpayers found out that the Internal Revenue Service (IRS) had been engaging in the political targeting of non-profit groups based simply on their ideology and now two major developments have put this scandal back into the spotlight. In case a refresher is needed, in May of this year, it was revealed that systematic targeting of non-profits by IRS officials in Cincinnati,Ohio was ongoing for what turned out to be political purposes. The inappropriate and possibly criminal targeting of non-profit groups had been happening under the knowledge officials in Washington, D.C., not just Cincinnati. An Inspector General’s report detailed that the IRS Agents selectively targeted nearly 500 groups simply for political reasons, completely disregarding the standards and guidelines that have been clearly laid out for these processes. Fast forward to last week, as two new tidbits into this continuing story became available to the public: the lack of any investigation into the possible illegal activity at the IRS; and the call for a troubling new set of rules on non-profits designed to hinder political speech. In a disappointing week for those concerned with the amount of power the IRS has over individuals and the fact they have clearly abused that power to the point where public confidence in the agency has cratered, it was made apparent that the Department of Justice has been slow-walking their investigation into what exactly happened regarding the political targeting of groups seeking tax-exempt status.
Today, families all across the country will get together and gather around their dinner table and celebrate Thanksgiving. There are many things that the Taxpayers Protection Alliance (TPA) is thankful for but unfortunately for taxpayers there are plenty of turkeys too, and no we’re not talking about the ones in your kitchen oven! In honor of the Thanksgiving holiday, TPA thought we would take a moment to spotlight some of the biggest ‘bird’ens on taxpayers this year with our Taxpayer Turkeys of 2013! The three Taxpayer Turkeys are Obamacare, the Export-Import Bank, and the Internal Revenue Service. Watch the video below to see some of the best of the worst that taxpayers have no reason to be thankful for this year. Click here to see the video!