Sen. Orrin Hatch (R-Utah) said the $3 trillion-plus budget President Obama unveiled today is unacceptable to middle-class families and small businesses that are cutting back and looking for the nation's capital to do the same.
"We cannot tax and spend our way out of this economic crisis," Hatch said. "Washington needs to tighten its fiscal belt, rein in the runaway federal deficit and bring real relief to Americans struggling to make ends meet, pay their mortgages and keep their jobs. Unfortunately, this reckless budget will swamp Americans in a morass of debt and mortgage the future of our children and grandchildren."
Hatch noted the debt Americans must repay for the Democrats' spending during the last month alone is equal to the debt the nation tallied from 1789 to 1978. He further took exception to the massive proposed tax increases in the budget on U.S. businesses, which would be passed on to consumers and workers - the very people the president is claiming to want to help most with this budget.
"Raising taxes during a serious recession makes about as much sense as giving a diabetic a box of chocolates." Hatch said. "Herbert Hoover raised taxes during a serious recession and it led to record unemployment and the Great Depression. History need not repeat itself if we pay heed to history."
The budget deficit for fiscal year 2009 is now estimated at $1.7 trillion. The president's spending proposals would double nation's total debt over the next five years. While the president projects to cut the one-year deficit in 2013 to $533 billion, Hatch noted, that still amounts to the worst deficit in our nation's history before this year.
Hatch also took aim at the administration's proposal to hike taxes on American businesses, the very entities that save and create permanent jobs, by a whopping $1.63 trillion over 10 years.
"This budget declares war on American jobs and on the ability of American businesses to save and create them," Hatch warned.
For example, the senator pointed out the administration's plans to levy a $646 billion tax on American business over a decade - the largest single tax increase in world history. Listed as "Climate Revenues" in the president's plan, Hatch pointed out, this job-killing idea boosters are calling "cap-and-trade auction" could put a chill on any hope of economic recovery.
"For the first time ever, we are poised on the precipice of taxing the industrial output of the United States," the senator continued. "Democrats say that is fine because the proceeds from this tax will go to compensate the public.' How are we going to compensate the hundreds of thousands (perhaps millions) of workers employed by these industries when they lose their jobs because their companies can no longer compete as a result of this new tax?"
Equally egregious, Hatch added, is the provision in the plan to create a 10-year, $634 billion "reserve fund" to be used as a down payment on the Europeanization of U.S. health care - an overhaul that could cost as much as $1 trillion over 10 years and would be financed, in part, by reducing payments to insurers, hospitals and physicians and reductions to Medicare Advantage plans.
"We have already spent more than $200 billion on health care in the Children Health Insurance Program (CHIP) and stimulus bills combined, and there's another $200 billion for health care in the Omnibus spending bill," Hatch said. "We need to ask ourselves a simple question: How big is this down payment and what will be the final cost? And we need a straight answer to those questions.
"Words matter, especially when they are from the leader of the free world" the senator added. "Despite the president's incessant promises of bipartisanship and fiscal responsibility, he is proposing to spend still more taxpayer dollars at an astounding rate. That is unacceptable. I look forward to joining with colleagues on both sides of the aisle to craft meaningful and fiscally responsible reform legislation."