Today, Nebraska's Senator Ben Nelson voted against a proposed $140 billion "tax extenders bill" that would add $78.7 billion onto the federal deficit. The proposal, which needed 60 votes to overcome a procedural hurdle, failed on a bipartisan 45-52 Senate vote.
Senator Nelson said in a conference call with Nebraska reporters that he voted no because the measure would substantially increase the federal deficit and could jeopardize the nation's tenuous economic recovery. Earlier this year, 47 governors, including Nebraska Gov. Dave Heineman, asked Congress to approve $24 billion in additional Medicaid funding to bail out state budgets, which was a key unpaid-for provision in the Senate tax extenders bill.
"I am not supporting the bill as it stands and my reasons can be summed up in two words: The Deficit," said Senator Nelson. "The federal deficit is already on its way to topping $1 trillion for the second year in a row. Borrowing and deficit spending at the point of an economic crisis--and we were in a severe one in late 2008 and early 2009-- is one thing. But when you're in an economic recovery, as we are today, borrowing and deficit spending is another thing.
"Washington needs to put a plug in deficit spending. Taxpayers are demanding fiscal responsibility and we need to listen to them," Nelson said.
The senator said he understands the need to extend unemployment insurance benefits for Nebraskans and other Americans who remain out of work, and to extend certain tax provisions that encourage business activity and job growth. But they should be paid for.
On February 21, 2010, the 47 governors sent a letter to congressional leaders asking Congress to extend the American Recovery and Reinvestment Act's additional Medicaid (FMAP) funding another eight months. They didn't address paying for the new spending.
"Unfortunately, the length and depth of the recession means states and territories will continue to face significant budget shortfalls long after the enhanced FMAP provisions expire and the end of this calendar year," the governors wrote.
Today, Nelson said: "The real problem is that Washington has got to stop passing unfunded mandates like this one on the states. I'd remind folks that when I pushed to eliminate the unfunded mandate in the health reform bill last December, I was ridiculed by both the governor of California and Nebraska. Today, though, they want more money. And we all know they will want more money later.
"Like all Nebraskans and many, many Americans, I've got bailout fatigue. Whether it's bailing out Wall Street, Detroit, or the states, taxpayers just can't afford any more. In addition, with hundreds of millions of federal recovery dollars still not spent in states like Nebraska, it's irresponsible to raise the deficit or raise taxes in Washington to balance budgets in the states. It is irresponsible to add more debt for our children and their children to pay."