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  • House Stimulus Plan Actually Costs $1.34 Trillion – Senate Bill Even More

    From Heritage Senior Research Fellow Robert Rector’s latest analysis of Obama’s Trillion Dollar Debt Plan:

    The recently passed U.S. House of Representatives stimulus bill contains $816 billion in new spending and tax cuts. Of this sum, $264 billion (32 percent) is new means-tested welfare spending. This represents about $6,700 in new welfare spending for every poor person in the U.S.

    But this welfare spending is only the tip of the iceberg. The bill sets in motion another $523 billion in new welfare spending that is hidden by budgetary gimmicks. If the bill is enacted, the total 10-year extra welfare cost is likely to be $787 billion.

    The claim that Congress is temporarily increasing welfare spending for Keynesian purposes (to spark the economy by boosting consumer spending) is a red herring. The real goal is a permanent expansion of the welfare system.

    The notion that Congress intends to temporarily increase Pell grants and EITC benefit levels for just two years and then allow benefits to fall back to their original status is out of touch with Washington reality. Any Congressman who, two years from now, suggests that the new welfare spending be allowed to lapse to pre-stimulus levels would be pilloried for slashing welfare.

    Once the hidden welfare spending in the bill is counted, the total 10-year fiscal burden (added to the national debt) will not be $816 billion, as claimed, but $1.34 trillion.

    Posted in Ongoing Priorities [slideshow_deploy]

    6 Responses to House Stimulus Plan Actually Costs $1.34 Trillion – Senate Bill Even More

    1. James Holloway says:

      Take the proposed budget and divide by the number of census tax payers (168,000,000) and give the money to the people who have been paying it forward. We the tax payers pay the taxes, duh!!!

      My first calculation before additional funds have been added to the kitty show that each tax payer would recieve a stimulus check of not less than $51,000 each. Hmmmmm! What would a person do with an extra 51k? Buy, a car, down on a home, start a business, pay off or down a mortgage, put some savings away, pay off medical bills GEEEEE, stimulating insn't it. Trickle from the bottom up? Give the people the money they created through their activity in the market place? It would work and we wouldn't have all these pigs at the trough ready for the slop they feel they so rightly deserve. I say let them fold due to poor management and give the money to the people who really work and know how to manage. Give it to the people then get the Hell OUTA their way!

    2. C W Brooks-St. Georg says:

      I find fault with the stimulus bill, but I am concerned that the governors through out the US are in favor. Our Utah Governor Huntsman is on record favoring its approval. He's well liked and Republican. We are budget poor as so many states are. Is the stimulus bill a cure all? Is there a way to read the entire bill as proposed?

    3. Jim M., Phoenix, AZ says:

      There are very few things i live in fear of, but this stimulus plan (or whatever you want to call it), scares me to death. I am a middle income American who is trying to do the right thing for myself and my family financially, from being a smart shopper, to being a financially responsible individual paying his fair share, but with this, i see nothing fair about it and I certainly don't see anything stimulating either. Everyone here at heritage.org has said the same thing, but totally correct as well: This bill will cause more financial problems rather than benefiting us. We all want to keep all of our money, but as it has been since the establishment of the IRS, we have to pay a share, but this bill is going to make fairness disappear.

      If this bill passes, what can we as Patriotic Americans do to counteract the affects? Right now, nothing comes to mind and the future of myself and my family is so bleak and depressing. I could have sworn there is a statement in our Constitution that says if we are not happy with the current government, that we are allowed to march to the Capitol and demand the removal of those who are not governing, which I see our current legislature at that juncture: less governing and more financial greed.

    4. George Williams Me says:

      I have, for all my life been proub of my country, I fought to keep it free. But in all my life I have never been so upset over what our government is trying to do. How can I look my granddoughter in the face, and try to explain why! her kids will be paying off this mess that the democrats are trying to force on us. All I can do is pray that someone, will have the backbone to do whats right for our country. And do what the voters sent them up there to do.

    5. ROBERT M STEWART, 42 says:

      Dear sir,

      I would appreciate it if you would publish my letter below.

      ABSOLUTE GOVERNMENT

      Absolute Government, is one having total power and authority over its citizens. When early humans accepted the concept of Government, it was because they had learned that, if they organized their resources and labor, they could better keep themselves safe and more comfortable. After several generations, individual comfort level would improve and then, in time, decline until severe changes were necessary. Groups of individuals would either immigrate and start a new Government, or change the one that they had. This process continues in our 21fst Century. Internal or external forces change Government, but not its purpose, which remains an acceptable average individual comfort level.

      Government is absolute when it manages all means of production, and distributes work to individuals in accordance with their Government dictated capabilities. There are no rich or poor. This has never worked for long in human history, because individuals lose the incentive to work and average comfort falls. Crashing the economy of comfortable nations has always, been the best way to sell its people Absolute Government. Our new Government, elected to Congress in 2006, was able to crash the economy just before the 2007 election, and on Feb. 6, 2009 passed a $1.1 trillion Spending Bill, to assure there is no recovery until the average comfort level is low enough, that the people demand absolute Government.

      Robert M Stewart

      42 Charleston Circle

      Brandon MS, 39047

      Phone: 601-992-2721

    6. Ralph Conwill, Frank says:

      Michelle Obama said that for the first time in her life, she was proud of her country. As a result of what our new President is doing, for the first time in my life I am both afraid for my country and afraid of my country.

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