• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Imaginary Savings Used to Justify $26-Billion in Spending

    Using the classic Washington fib that “It’s paid for,” Congress is spending an extra $26-billion to bail out state governments (who already got the lions’ share of last year’s failed $787-billion “stimulus” bill).

    The House will rush back from a six-week recess to spend the money next week—an urgency that they instead should show to fix the economy by removing the twin threats of Jan. 1 tax hikes plus a bundle of job-killing regulations.

    The $26-billion won’t fix the jobs crisis in the private sector, but instead gives job security for public employees, especially teachers and others who are heavily unionized.  And it gives states extra money for their Medicaid programs.

    Senator Harry Reid tweaked the bill’s formulas to send more money to Maine, which prompted its Senators—Susan Collins and Olympia Snowe—to break ranks Wednesday and end the GOP filibuster of the state bailout bill.  The amount of benefit to Maine is unclear, so it’s hard to compare with previous vote-buying such as the “Louisiana Purchase” to win the vote of Sen. Mary Landrieu (D, LA) or the “Cornhusker Kickback” to get a vote from Sen. Ben Nelson (D, NE).

    But the proclamations of “It’s paid for.” amount to a typical Washington shell game.

    POLITICO reported, “The biggest single cut is an $11.9 billion rollback of added food stamp benefits first approved as part of the giant recovery bill last year.”  But that offset isn’t expected to happen.   According to Huffington Post, “Democrats told HuffPost they will work to prevent the food stamp cuts from ever taking effect.”

    Since the supposed food stamp cuts reportedly would not occur until 2014, Congress has plenty of time to reinstate the imaginary offsets.

    Just like phony spending reductions were used to provide offsets in the Obamacare health care bill (thereby creating false claims of reducing the deficit), the same gimmick is being used to justify the $26-billion in new spending.

    As Associated Press reported, “But most Republicans opposed the measure, calling it a payoff to public employee unions and warning that it would make the states ever-dependent on federal funds.”

    The fact that spending—not savings—merits a priority rush job was not lost on Sen. Scott Brown (R, MA), who said there were better options:  “We can pay for that by not increasing taxes in the middle of a two year recession,” said Brown.

    Posted in Ongoing Priorities [slideshow_deploy]

    7 Responses to Imaginary Savings Used to Justify $26-Billion in Spending

    1. Kevin Habib says:

      Absolutely insane to oppose $26 billion to that will help fight layoffs of teachers, firefighters and policeman, while also letting less people get cut off the rolls of states health services – yet I can guarantee next month, Heritage and Ernest and the rest of the crew will fully support extending the Bush tax cuts for the top 2%, which will cost the American people over $1 trillion.

      $1 trillion for the richest 2% of Americans who will do nothing with it except save it – copmpared to $26 billion for teacher, firefighters and policemen.

      Absolutely insane. I say screw the top 2%. I realize they fund Heritage, but they do very little to help the economy. CBO and many other economists have repeatedly shown the top 2% tax cuts do the smallest amount of stimulus and job creation of basically all options. Instead of extending the tax cuts for the top 2%, take that money and start a job creation tax credit. If a business creates a job, they get a tax credit. That will surely help economy far more than extending the top 2%.

      Also, people should understand why they expire at the end of this year. It's becuase the Republicans crammed it down the throat of the American people using reconciliation. Have you ever heard of reconciliation? Throat Cramming? It's the first time in history of the United States that reconciliation was used to add to the deficit. And look where things are now. I have no idea why people can;t look back at the last 30 years and see how much more succesful the Democrats policy decisions created mroe jobs and created a stronger economy. Look at the numbers. GDP growth. Job Creation. On and on – no comparison.

      Remember when Clinton and Democrats passed thier tax cut for middle class and increased taxes on the wealthiest americans – and all the republcians in congress opposed and said it would be 'job killing' and destroy the economy. WOW – were they wrong. Greatest economic growth in history of America and 22 million jobs were created. The necons always seem to be wrong, take us down the path to economic destruction, yet talk as if they know the right way.

    2. Dennis Georgia says:

      One of the great plans in the communist take over of Vietnam used by Ho Chi Min was to "spread the wealth". I bet the leberal media and the liberals of this country do no know where the saying came from nor who said it.

      I know you will now say that was a waste of time. money and lives. I could not agree more. The politricans saw to that, they would not let the Generals do their job. The dems, Kennedy, Johnson and lot were the ones resposible for that war, but do not forget that Eisenhower was the start, he sent advisors there during his reign.

      So lets "spread the wealth" like you socialist or worse president wants to, lets kill this country and make it a third world country, give the keys to the white house to the terroist muslims, tell those that killed 3000 Ameicans on 9/11 that we give up and they are now in controll. Congress, the white house and the dems, as well as the republicans that give in make me sick to my stomack.

      Stand tall and watch what happens to all of us as the liberals take away our hard fought freedoms and the personal rights we now enjoy. Then feel free to explain to you children and grandchildren how you sat on your butts and let this all happen. Tell them those that gave the most died for nothing, that freedom won by blood and guts, meant nothing to you when push came to shove. Tell them how you failed to go to the polls and vote, because you did not have time, or it was bad weather, tell them that you did not want to get involved in the process because your vote did not count, or that you did not believe those in power could or would give this country away. Tell them and see how you feel because of your lack of careing for American and them.

    3. Pingback: Must Know Headlines 8.5.2010 — ExposeTheMedia.com

    4. J Crane says:

      As I understand it, I hear there is still $421B still unspent from the $781B stimulus package that was supposed to include funding for these same teachers and first tesponders. Why do they need to spend an additional $26B?

    5. Drew Page, IL says:

      Leave it to Obama and we will all be paying union dues, whether or not we belong to a union and regardless of being employed.

    6. donald mccormick - P says:

      This is like a wife in a family with a $25,000.00 income going out and replacing the family car that was in need of replacing and BUYING a NEW car for $50,000.00 because she saved $55,000.00 in the deal. That is NOT how YOU save money even in America. You CUT expenses and tighten your belt and keep your old car until you have to get another car and NOT a NEW CAR. You do NOT upgrade to what you had before, you look for a CHEAPER car.

    7. Billie says:

      Kevin Habib, an honest, government of good will, leadership, concerned for the people wouldn't ever put these areas in a state of compromise. It is only a failed government that would threaten these areas with consequences to the people, government's only duty is to protect. Get rid of special interest and leave these areas without compromise. No need to steal.

      Kevin Habib:

      absolutely insane. I say screw the top 2%. I realize they fund Heritage, but they do very little to help the economy. CBO and many other economists have repeatedly shown the top 2% tax cuts do the smallest amount of stimulus and job creation of basically all options. Instead of extending the tax cuts for the top 2%, take that money and start a job creation tax credit. If a business creates a job, they get a tax credit. That will surely help economy far more than extending the top 2%.

      Me: A private sector business owner doesn't go through the corruption of government money paying for their employees. Pretty much defeats the purpose of private businesses and a free economy. You sure have a passion for jealousy! Top 2%! Let's get 'em, right Kev? Lets get 'em. Forget about the door of opportunity obama is blocking so that top could be increased with us in it. Let's stop building our own lives in freedom and demand someone elses! It's all their fault for doing it for themselves in freedom. How dare they!

      What are you doing to help the economy, Mr. Habib? Besides hoping to get someone elses money to pay your bills. I pity people like you. You're only answer is government dependency. SOMEONE DEPRIVED YOU!

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×