December 10th, 2010, Fairfax, VA—Americans for Limited Government (ALG) President Bill Wilson today issued the following statement on the likely $1.5 trillion deficit that will be left behind by the Obama-McConnell tax deal:

“The $1.5 trillion likely deficit left behind by the tax deal reveals the dire need to balance the budget with spending cuts. A recent International Monetary Fund study shows that successful fiscal consolidation programs globally have relied primarily on spending cuts, not tax increases. And especially since there is a strong bipartisan consensus not to have any tax increases in the midst of a severe economic downturn, that means the budget can only be balanced now, and the $13.8 trillion debt reined in, with spending cuts.

“Unfortunately, when this deal was first presented, it was commonly understood to contain an unpaid-for $56 billion extension of unemployment benefits and a $120 billion cut in payroll taxes on employees. Without offsetting budget cuts presented alongside these budget-busters, the deal was bad enough. But now Harry Reid is busy inserting provisions extending hundreds of billions of dollars of tax credits, corporate welfare subsidies, and other handouts from the 2009 Obama ‘stimulus’ program. These include ethanol subsidies, windmill subsidies, and other so-called ‘green’ programs that have nothing to do with creating the conditions for a sustainable economic recovery. It even includes extension of tax deductions for public school teachers. Enough is enough.

“This is all unacceptable to the American people, and it should be unacceptable to Senate Republicans, who never agreed to lift their filibuster so that already-failed ‘stimulus’ measures could be extended as a means of passage. Over $650 billion of this now-$990 billion package has nothing to do with preventing imminent tax rate hikes on all Americans, as revealed today by columnist Charles Krauthammer. It has everything to do with holding the economy hostage to get as much wasteful spending as possible.

“Senate Republicans must hold the line and not be afraid to reject this bill that has become a Christmas tree monster of handouts, kickbacks, and other favors that they never agreed to in the first place. The American people voted for spending cuts in November, not a trillion dollar boondoggle. The imminent tax increases on all Americans need to be prevented, but not at the cost of the nation’s very fiscal solvency. Where are the spending cuts the American people were promised?”

Interview Availability: Please contact Rebekah Rast at (703) 383-0880 or at rrast@getliberty.org to arrange an interview with ALG President Bill Wilson.

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December 9th, 2010, Fairfax, VA—Americans for Limited Government (ALG) President Bill Wilson today issued the following statement responding to reports that the tax deal extending current tax rates may include subsidies for corn ethanol producers:

“If reports emerging that the vaunted Obama tax compromise may include subsidies for the ethanol industry are true, Republicans should walk away from this ‘compromise’. This would be the first bauble on the Christmas tree, and if this deal simply turns into a boondoggle of special interest favors and corporate welfare subsidies, it needs to die. That means no deal.

“The $56 billion unemployment extension is bad enough. So is underfunding Social Security by $120 billion. Their inclusion in the deal without offsetting budget cuts puts that much more pressure on the nation’s dire fiscal situation, with a $13.8 trillion national debt that is spiraling beyond control. They mean that, if passed, Congress will have to cut that much more spending out of the budget come January to balance the budget.

“The immediate dangers to this weak economy posed by hiking taxes across the board are very real. Economists on both sides of the political aisle are predicting a double-dip recession if taxes rise now. However, that is not an excuse for lawmakers to hold the economy hostage to score a few more special interest favors before the year ends. That is not what the American people voted for in November.

“This bill is becoming a monster, and Congress may after all be better dealing with tax rates in January retroactively, especially if congressional leadership insists on carrying on business as usual with handouts, kickbacks, and other favors. These corn ethanol subsidies and any other special interest favors lawmakers have in mind need to be removed, or else the deal will justly not earn the support of the American people.”

Interview Availability: Please contact Rebekah Rast at (703) 383-0880 or at rrast@getliberty.org to arrange an interview with ALG President Bill Wilson.

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