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  • New Extenders Bill Still Contains Irresponsible Spending

    The long-debated extenders bill failed to pass the Senate yesterday by a wide margin (45-52). That’s good new for taxpayers because the bill contained $48 billion in new taxes, $126 billion in new spending and added $79 billion to the national debt.

    Despite yesterday’s setback, Senate leaders are undeterred and released a new version of the extenders bill today. This latest version is essentially no different than the one that passed the House in late May and the bill that failed in the Senate yesterday.

    Senate leaders did cut almost $21 billion from the cost of the new extenders bill so the total cost is now over $105 billion to make it more palatable for budget-conscious Senators. This is still too much spending, especially because a vast majority of the reduced spending is from a program that will require Congress to spend the money saved now in the near future.

    Of the $21 billion savings, almost $17 billion of it comes from shortening the length of the so-called “doc fix” that prevents a reduction of payments to doctors that treat Medicare patients from 19 months to 6 months. That means the latest extension will run out again at the end of November. At that time Congress will have to go through this routine all over again to pass the doc fix so Medicare patients don’t lose their doctors. The reduced spending in the extenders bill is nothing but a budget gimmick because it just delays inevitable expenditures.

    The latest extenders bill increases the tax hikes contained in the previous bill by another $3 billion. If this version passes the Senate, it will raise taxes by over $50 billion. Now is the worst possible time to raise taxes as the economy is trying desperately to get on its feet. Apparently Congress hasn’t got the message because it continues to place more weight on the economy that will only slow recovery.

    The temporary delay of spending on the doc fix and the $3 billion in new taxes means the new extenders bill increases the deficit by $55 billion. This is $24 billion less than the version that failed in the Senate. This is small consolation because almost all of this spending will eventually be added to the national debt as soon as Congress gets around to extending the doc fix for a longer period of time.

    Congress being what it is it couldn’t let an opportunity to add new spending to the bill even as it tries to get the cost down to make it politically more appealing. The extenders bill now includes and extension of the homebuyer tax credit through September 2010. The credit was supposed to expire at the end of June. This is more spending that is only delaying the inevitable downward readjustment of home prices that will come eventually, regardless of intervention from Washington.

    It is easy to forget that there are a wide range of expired tax provisions that are the heart of the tax extenders bill. But the irresponsible spending that Congress has added the tax extenders has clouded reality. Its time for Congress to focus on top-priorities and stop trying to pass more spending by adding it to otherwise necessary legislation.

    Posted in Economics [slideshow_deploy]

    12 Responses to New Extenders Bill Still Contains Irresponsible Spending

    1. Mom Dubay says:

      Well I'll live off my credit cards, max them out and then go bankrupt! That will help out the economy and taxpayers Curtis(you ASSHOLE,wait WHOLE ASS)

      Love,Mom

    2. pat gilbride says:

      I have been out of work since sept. 11 of 2009. I have an associates degree in electronics and have been looking for a job since sept. 2009. Also u have on my record is some non violent felonies over 15 years ago and my credit score sucks. I've applied at jobs and come to find out that if you are a felon in these hard times you are not quallified it's deffinetlly an employers market.The qualifications for a job has been so specific that unless you've done that particular job before you're not in the running. I hate this economy and the idiocy I see in the Government.

    3. Billie says:

      Please understand, everything happening is because of government overreach. Job losses at blue cross is their government connection. Job losses in the private sector is all government intervention. Obama and the bunch want government growth, that's why there were 85% more government jobs created (tax payer paid without benefit,) then private sector (pays their own without burden to the tax payer and sole benefit to the freedom of choice.)

    4. Billie says:

      Don't worry about the greedy. You are judging where you accuse others. Greed has their own conscience or not. Stay strong and true to God. He provides where you comply.

    5. Pat Clifton says:

      You have no idea how difficult it is to find a job in this economy!!! I lost my job at Blue Cross along with 125 others in our small town due to outsourcing our jobs overseas, and it has nothing to do with healthcare reform. Blue Cross has been doing this in our location for over 5 years. I am 59 years old, raising my 3 grandchilren and have never been unemployed in my life. I started working at age 15 to support myself. You act as if we want to just draw benefits. I want to work, I don’t like not having a job and I will probably have to work a part time job in addition to a full time job when I get one to make up for my salary loss. My husband and I have always helped others, adopting instead of having more children of our own and now raising the adopted child’s children because of mental illness in our daughter’s genetic history that we did not know about. I am a Christian, but the problem with most Christian’s is they do not act like Christians. They are greedy, judge poor people and I could go on and on. Hide behind your Heritage Foundation all you want, but judgement day is coming. I might not have much in this life, and I am not supposed to be tied to this world, but I know my reward is in heaven, do you???

    6. DUKE DAVIS says:

      your arrogance apaules me. the bigger picture is me,my wife and to many other americans are on/was unemployment by no fault of our own. we would love to be able to go to work every day like we have for the majority of our lives. no jobs. the added benifits of this bill will enable millions of americans to remaine in there homes and give us the ability to keep paying our bills,own our vehicle,gas/insurance and so on to find work.

      richmond va.

    7. Ned, Big Bear City, says:

      I wish all writers of such articles as this would quote the bill number(s) so readers can go get a copy off the GPO website and read it to see what the article is talking about. Otherwise, however accurate the article might be, it only contributes to the cacophony of claims and counterclaims. It might even be useful to provide a link to the actual bill along with each article.

    8. Tommy, TX says:

      My employment fix for helping the US economy: Government puts stop to any and all outsourcing of jobs to out side of the USA. All currently outsourced jobs must come back to the US with a 12 month period or the companies will face heavy government fines to bring the effective cost of having the foreign labor up to the average cost of the same domestic labor. Those fines are used to help pay for unemployment benefits for citizens out of work. Protectionism will work!!!

    9. Lynn Bryant DeSpain says:

      In the days of my youth, when ethnic jokes may not have been nice, and some were cruel, but one could not be sued for them, there was one that asked,"What is a Black Charger?"

      Seems that with our new President, we have an answer.

    10. Leslie Millane Ixoni says:

      May we have your address,city,state and zip so that we can have our mail forwarded to your home oh and your phone number, we will let you explain to the bill collectors why there is not even enough money to rob Peter to pay Paul.

      My husband lost his job in Nov. He has always worked, he has always provided.He is a college graduate (cum laude I might add), Wal-Mart won't even hire him becuase he is over qualified and McDoanlds told him that they realize that he would only be there for "awhile" My salary is barely keeping us going, I've borrowed against my Roth 401K, my life insurance policy and my vested stock. Our savings is gone…

      I truly hope you can sleep at night feeling the way you do…

    11. Chelle, Houston, TX says:

      In re: to the author of the article. This NOT good news for taxpayers. Taxpayers need money to pay their bills. Bills get paid, and it keeps companies in business. They don't reinstate the UI benefits, the US will collapse completely. But they can keep paying the over 700 billion dollars on a stupid war, right? What is that doing to the taxes? Hmm..I wonder…

    12. Gary Lee Texas says:

      we need to pass the tax extender bill now

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