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Spending Restraint?
                                                  (in Billions of Dollars)
                                                  (in Billions of Dollars)
                                                                                       Obama FY2010 Budget
5,500
5 500
5,000
4,500
4,000
3,500
3,000
3 000
2,500
2,000
1,500
1,000
 500
        2000
               2001
                      2002
                             2003
                                    2004
                                           2005
                                                  2006
                                                         2007
                                                                2008
                                                                       2009
                                                                              2010
                                                                                     2011
                                                                                            2012
                                                                                                   2013
                                                                                                          2014
                                                                                                                 2015
                                                                                                                        2016
                                                                                                                               2017
                                                                                                                                      2018
                                                                                                                                             2019
Expanding the Size of Government
       (Government Spending as Percentage of GDP)
       (Government Spending as Percentage of GDP)
31
      Historical Average
                      g    Obama Administration FY2010 Budget
                                                          g
29

27

25

23

21

19

17

15
President s FY2010 Tax Increases
      President’s FY2010 Tax Increases
                    Other
                  $149 Billion
                                         Cap and Trade
                                          $646 Billion




                    $1,431,000,000,000
                    $1 431 000 000 000
Small Business 
 and Investors
  $636 Billion
  $636 Billion
Tax Cuts for 95% of Americans?
Tax Cuts for 95% of Americans?

 Make Work Pay Tax Credit   = ‐$800

 Impact of Cap and Trade*    = +$1,600


 Net Tax Increase per Family = +$800

    * CBO Estimate
Deficit Under Democratic Budgets
                         (Deficit Levels in Billions of Dollars)
                         (Deficit Levels in Billions of Dollars)
            2,000
                          Republican Budgets      Democratic Budgets
            1,800
            1 800
            1,600
            1,400
$ Billion
        n




            1,200
            1,000
              800
              600
              400
              200
                0




                                                     OMB Estimate
Doubling the Debt Held by the Public
                                              (in Billions of Dollars)
                                              (in Billions of Dollars)
16,000

14,000
14 000

12,000

10,000
10 000

 8,000

 6,000
 6 000

 4,000

 2,000

    0
           00
                  01
                         02
                                03
                                       04
                                              05
                                                     06
                                                            07
                                                                   08
                                                                          09
                                                                                 10
                                                                                        11
                                                                                               12
                                                                                                      13
                                                                                                             14
                                                                                                                    15
                                                                                                                           16
                                                                                                                                  17
                                                                                                                                         18
                                                                                                                                                19
         200
                200
                       200
                              200
                                     200
                                            200
                                                   200
                                                          200
                                                                 200
                                                                        200
                                                                               201
                                                                                      201
                                                                                             201
                                                                                                    201
                                                                                                           201
                                                                                                                  201
                                                                                                                         201
                                                                                                                                201
                                                                                                                                       201
                                                                                                                                              201
                                                                                                OMB Estimate
Future Debt Burden
             (Debt Held by Public as Percentage of GDP)
             (b      ld b    bl                  f    )
250
                            Actual
                             ctua       Democratic Budgets*
                                         e oc at c udgets
200


150


100


50


 0
      1940
         0
      1944
         4
      1948
         8
      1952
         2
      1956
         6
      1960
         0
      1964
         4
      1968
         8
      1972
         2
      1976
         6
      1980
         0
      1984
         4
      1988
         8
      1992
         2
      1996
         6
      2000
         0
      2004
         4
      2008
         8
      2012
         2
      2016
         6
      2020
         0
      2024
         4
      2028
         8
      2032
         2
      2036
         6
      2040
         0
      * ‐ ‐ ‐ Out‐years based on CBO’s Long‐Term Projections
Family Energy Budget in 2012
           y     gy    g
                                       Cost with Cap & Trade
Cost without Cap & Trade




                                        $1,415
    $1,303                                              $1,786
                                        (+ 9%)
                  $1,536                                (
                                                        (+ 16%)
                                                              )




                                              $1,236
        $1,082
                                              (+ 14%)


                 Gasoline   Nat. Gas   Electricity
Doubling the National Debt
                                                   (Billions of Dollars)
                                                   (Billions of Dollars)
25,000


20,000


15,000


10 000
10,000


 5,000


    0
           00
                  01
                         02
                                03
                                       04
                                              05
                                                     06
                                                            07
                                                                   08
                                                                          09
                                                                                 10
                                                                                        11
                                                                                               12
                                                                                                      13
                                                                                                             14
                                                                                                                    15
                                                                                                                           16
                                                                                                                                  17
                                                                                                                                         18
                                                                                                                                                19
         200
                200
                       200
                              200
                                     200
                                            200
                                                   200
                                                          200
                                                                 200
                                                                        200
                                                                               201
                                                                                      201
                                                                                             201
                                                                                                    201
                                                                                                           201
                                                                                                                  201
                                                                                                                         201
                                                                                                                                201
                                                                                                                                       201
                                                                                                                                              201
                                                                                                OMB Estimate
Cap and Trade = 1.5 Million Jobs Lost
                      (Cumulative Job Losses Per Year)
                      (Cumulative Job Losses Per Year)  

1,600,000

1,400,000

1,200,000

1,000,000

 800,000
 800 000

 600,000

 400,000

 200,000

       0
               2011         2012        2013        2014   2015
President’s Entitlement Spending Increases
                       Other 
                     $38 Billion

                                          Refundable Tax 
                                          R f d bl T
                                              Credit
                                            $326 Billion
Physician Payment 
    Increases
   $330 Billion

                     $,
                     $1,012,000,000,000
                           ,   ,   ,


                                             Health Care 
                                          Spending Financed 
                                           p      g
                                              with Taxes
                                             $318 Billion

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Obama FY2010 Budget

  • 1. Spending Restraint? (in Billions of Dollars) (in Billions of Dollars) Obama FY2010 Budget 5,500 5 500 5,000 4,500 4,000 3,500 3,000 3 000 2,500 2,000 1,500 1,000 500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
  • 2. Expanding the Size of Government (Government Spending as Percentage of GDP) (Government Spending as Percentage of GDP) 31 Historical Average g Obama Administration FY2010 Budget g 29 27 25 23 21 19 17 15
  • 3. President s FY2010 Tax Increases President’s FY2010 Tax Increases Other $149 Billion Cap and Trade $646 Billion $1,431,000,000,000 $1 431 000 000 000 Small Business  and Investors $636 Billion $636 Billion
  • 4. Tax Cuts for 95% of Americans? Tax Cuts for 95% of Americans? Make Work Pay Tax Credit   = ‐$800 Impact of Cap and Trade*    = +$1,600 Net Tax Increase per Family = +$800 * CBO Estimate
  • 5. Deficit Under Democratic Budgets (Deficit Levels in Billions of Dollars) (Deficit Levels in Billions of Dollars) 2,000 Republican Budgets Democratic Budgets 1,800 1 800 1,600 1,400 $ Billion n 1,200 1,000 800 600 400 200 0 OMB Estimate
  • 6. Doubling the Debt Held by the Public (in Billions of Dollars) (in Billions of Dollars) 16,000 14,000 14 000 12,000 10,000 10 000 8,000 6,000 6 000 4,000 2,000 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 200 200 200 200 200 200 200 200 200 200 201 201 201 201 201 201 201 201 201 201 OMB Estimate
  • 7. Future Debt Burden (Debt Held by Public as Percentage of GDP) (b ld b bl f ) 250 Actual ctua Democratic Budgets* e oc at c udgets 200 150 100 50 0 1940 0 1944 4 1948 8 1952 2 1956 6 1960 0 1964 4 1968 8 1972 2 1976 6 1980 0 1984 4 1988 8 1992 2 1996 6 2000 0 2004 4 2008 8 2012 2 2016 6 2020 0 2024 4 2028 8 2032 2 2036 6 2040 0 * ‐ ‐ ‐ Out‐years based on CBO’s Long‐Term Projections
  • 8. Family Energy Budget in 2012 y gy g Cost with Cap & Trade Cost without Cap & Trade $1,415 $1,303 $1,786 (+ 9%) $1,536 ( (+ 16%) ) $1,236 $1,082 (+ 14%) Gasoline Nat. Gas Electricity
  • 9. Doubling the National Debt (Billions of Dollars) (Billions of Dollars) 25,000 20,000 15,000 10 000 10,000 5,000 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 200 200 200 200 200 200 200 200 200 200 201 201 201 201 201 201 201 201 201 201 OMB Estimate
  • 10. Cap and Trade = 1.5 Million Jobs Lost (Cumulative Job Losses Per Year) (Cumulative Job Losses Per Year)   1,600,000 1,400,000 1,200,000 1,000,000 800,000 800 000 600,000 400,000 200,000 0 2011 2012 2013 2014 2015
  • 11. President’s Entitlement Spending Increases Other  $38 Billion Refundable Tax  R f d bl T Credit $326 Billion Physician Payment  Increases $330 Billion $, $1,012,000,000,000 , , , Health Care  Spending Financed  p g with Taxes $318 Billion