Recently, a notable economist who supported the stimulus tax rebate checks mailed out this spring admitted the checks failed to give the economy a much-needed boost.

Martin Feldstein, a Harvard professor who chaired the Council of Economic Advisers under President Reagan, wrote in the Wall Street Journal:

"Those of us who supported this fiscal package reasoned that the program would boost consumer confidence as well as available cash.{…}The evidence is now in and that optimism was unwarranted. Recent government statistics show that only between 10% and 20% of the rebate dollars were spent. The rebates added nearly $80 billion to the permanent national debt but less than $20 billion to consumer spending. This experience confirms earlier studies showing that one-time tax rebates are not a cost-effective way to increase economic activity."

Not only were the stimulus checks ineffective, they added nearly $80 billion to our permanent national debt. Once again, our government’s knee-jerk reactions will cost our children and grandchildren for years to come.

In a time when families are struggling to stay within their budgets, the government continues to irresponsibly live beyond its means -- preferring to pass crippling financial burdens onto future generations. Just last year, Congress spent over $17 billion on more than 11,600 pork barrel earmarks. And a review of federal spending in 2006 found over $1 trillion in waste and questionable use of taxpayer dollars. Government spending has ballooned out of control and this needs to stop.

“The Roadmap for America’s Future” proposed by Rep. Paul Ryan (which he blogged about previously), would reel in current spending levels declared unsustainable by the Congressional Budget Office. It would also curb and decrease debt over the next several years.

Americans are sick and tired of wasteful government spending. While they struggle to meet rising energy costs and still putting food on the table, their government appears to give little thought to what runaway spending today means for outlook of tomorrow. They, as well as their posterity, deserve better.

Elected as South Carolina’s 55th senator in 2004, Senator DeMint quickly established himself as one of the most effective conservative leaders in Washington, seeking to enact innovative solutions to improve America for future generations. He has been a tireless advocate for smaller government, individual liberty, a strong national defense and traditional values.

According to a recently released report by Taxpayer’s for Common Sense (TCS), House members will receive $290 million more in earmarks this year, than in last.   This increase is also accompanied by an increase in approved projects, which will swell by about 200 this year. 

These spending projects are included in the appropriations bills approved by the House, and so far we have only passed one of these spending bills. Current House leadership is hoping that a Democratic President will be friendlier to member earmarks, so it is unlikely we will pass or even consider anymore appropriations bills until after the first of the year.    

Overall, $5.12 billion accounts for all the earmarks in the spending bills we have seen thus far.  That takes into account these bills before conference reports, however conference reports are notorious for being stuffed with pork before being sent off to the President. 

Earmarks are the gateway drug to overspending, they must be reformed to help temper Congress’ addiction.

Congressman Ryan (WI) is the Ranking Member from the Committee on the Budget, and the main designer of the American Roadmap. 

America is on an unsustainable fiscal course. Today, the unfunded liability of just our two largest entitlement programs – Medicare and Social Security – is $40 trillion. That’s nearly $400,000 for every household in the U.S., and this burden continues to grow every year Congress fails to act.

If we continue down this path and do nothing to reform these programs -- the federal government will double in size, shackling the country with a future of higher debt, higher taxation, and a lower standard of living.

It is unconscionable to leave our children with this type of future. America’s legacy has always been to leave the next generation better off than the one before it. Unfortunately, Congress’ unwillingness to address the nation’s entitlement crisis threatens to shatter this legacy. 

That’s why I’ve introduced A Roadmap for America’s Future, comprehensive legislation that seeks to transform the major federal entitlement programs, as well as the federal tax code.  My plan achieves three important goals: 1) it provides universal access to health care and saves Social Security and Medicare; 2) it lifts the looming debt burden off of future generations; and 3) it ensures America leads and continues to create jobs in an increasingly competitive global economy. 

Rather than working to address the unsustainable growth in the entitlement programs, many in Congress claim it’s not politically feasible to try to reform them in an election year. Well, it’s an election year every other year.  They make excuses, taking a pass on tackling a problem that is going to tackle us. 

Not Representative John Campbell.  He understands this problem and wants to fix it.  He has the courage to talk about what is necessary to address this problem, and I’m lucky to have him as a cosponsor on my bill. 

America has risen to overcome greater challenges in the past.  With the leadership from members like John Campbell and the ingenuity, strength and resolve of Americans, we can solve this problem and leave a greater legacy for our children and grandchildren.  

For more details on A Roadmap for America’s Future, please visit www.americanroadmap.org. 

Rep. Paul Ryan (R-WI)
Ranking Member
Committee on the Budget 

Last week I blogged about the Flake/Campbell amendment to the Military Construction and Veterans Affairs Appropriations Bill, however there were other amendments that are worthy of mention.

Congressman Michael McCaul (R-TX), offered an amendment that would prohibit the use of federal funds for a “Monument to Me” for any Member of Congress.

Thankfully, the amendment passed. Here is a list of some of the most egregious examples:

• Robert C. Byrd Center for Hospitality and Tourism
• Robert C. Byrd addition to the lodge at Oglebay Park, Wheeling
• Robert C. Byrd Hilltop Office Complex
• Ted Stevens International Airport, Anchorage
• Harkin Grants: A grant program for local school remodeling in Iowa
• Harkin Wellness Grants: A grant program for promoting healthy lifestyles in Iowa
• Thomas R. Harkin Global Communications Center (CDC building)
• Arlen Specter Headquarters and Emergency Operations Center (CDC building)
• Mitch McConnell Park in Bowling Green, KY
• John D. Dingell Drive, which allows access to the new airport terminal at Detroit Metro
• Cynthia McKinney Parkway in Atlanta
• Jack Murtha Highway
• James E. Clyburn Golf Center
• James E. Clyburn Pedestrian Overpass
• James E. Clyburn Intermodal Transportation Center
• Charles B. Rangel Center for Public Service at the City College of New York

As you can tell this isn’t just an isolated problem.  But rather it is a widespread problem that both parties are engaging in.  That’s why I am original cosponsor of H.R. 5771, which will attack this problem head on and eliminate the practice of “Monuments to Me” for good.

This kind of bombastic self promotion with taxpayer dollars must stop.

Congress has passed no meaningful energy legislation to move us towards lower gas prices and more American energy and now has recessed for a 5 week break. Republicans, including yours truly, wanted to speak more about that on the floor of the House this afternoon. The Pelosi majority took the unusual step of calling for immediate adjournment to prevent these speeches from going forward and turned off the cameras and microphones on the House floor.

It’s one thing to not allow a vote on more energy production. It’s another to not even allow people to speak about it. I and several dozen others are speaking on the House floor right now to a gallery full of cheering people to demand that Speaker Pelosi allow a vote on more American energy production. No TVs. No microphones.

You can turn off the lights, but you cannot silence the will of the American people.

Today, Jeff Flake and I offered an amendment to the FY2009 Military Construction/Veterans Affairs Appropriations Bill.  Our amendment would prohibit funding for the 103 congressionally requested earmarks found in the bill.  This amendment would also reduce the overall cost of the bill by the more than half a billion taxpayer dollars. 

This is likely to be the only appropriations bill that we will see before the election, and the only chance Members will have to publicly state their position on earmarks. In what should be a pretty straightforward vote, at least for Republicans, is causing considerable consternation for both sides of the aisle.  It is being considered in the Report cards of numerous groups.

The Amendment failed by a vote of 350-63, to see how Members voted, click here.

Clearly Members of Congress do not yet understand what the vast majority of Americans know--earmarks must be ended or reformed. However, we did garner more votes than a similar amendment received last year. It can take awhile for Congress to get a message.

Keep sending them one.

Today I want to take a moment and honor one of the world’s most preeminent advocate for free markets and personal liberty, Milton Friedman.  Friedman helped shape the fiscal policy across the world, and Ronald Reagan and Margaret Thatcher looked to him for advice.

Milton Friedman did not invent free markets, but he proved that laissez-faire policies must be at the foundation of any free society.  Friedman was a statistician, economist, and public servant who advanced the idea of freedom based on minimizing government involvement to achieve economic, social, and political freedom. 

According to the Former Federal Reserve Board Chairman, Alan Greenspan, "There are very few people over the generations who have ideas that are sufficiently original to materially alter the direction of civilization. Milton is one of those very few people."

I cannot agree more.  Milton Friedman’s worked influenced many, including this Conservative.

A few months ago I predicted that the deficit would be a half trillion dollars by the end of the year.  In fact now, the Office of Management and Budget is predicting the budget deficit will be at $490 billion next year.

Well, I was off by $10 billion. But only for now. This Congress passes spending bills creating entirely new programs, spending or entitlements nearly every week. We may cross that half a trillion before the year is over. And with the socialized medicine programs that some are touting for next year, is a trillion dollar deficit coming?

Today, I was honored by the Club for Growth with the Defender of Economic Freedom Award. 49 Members of the House and 6 Senators received the award as well.

This award is granted to those members who demonstrate a strong commitment to economic freedom and free-market principals.  In order to receive this award, reciepients must have earned at least a 90% rating on the Club for Growth’s most recent scorecard. 

For your convenience I have listed the winners below.

A few days ago, the IRS has released data showing the percentage of income taxes paid by Americans.  Courtesy of the National Taxpayers Union, the table below shows, the top 10% of filers paid nearly 71% of all income taxes paid. The share paid by the bottom 50% drops from 3.07% in 2005 to 2.99% in 2006. You can see previous years here. You can also see "who doesn't pay taxes" here.

For Tax Year 2006

 

Today, The Hill reported on several lawmakers happy with current prospects on earmarking….mainly because they stand to increase their share of pork at the trough if more members of congress take no earmark pledges

The average GOP member brought home $10.5 million in earmarks last year.  With roughly 36 members abstaining this year, GOP earmarkers are slated to better that mark by about $2 million each, and it shows…

Rep. Steven LaTourette (R-OH) said in the article, “I would hope a hundred of my colleagues would not request earmarks.”   

Rep. James Walsh (R-NY) went on to confirm that members stand to receive more money for earmarks by saying, “If there are fewer requests, there should be more money to go around.”

Rep. David Hobson (R-OH) added, “It is not going be to helpful to win back the majority,” Hobson said, arguing that earmarks help members get elected to Congress. Instead, anti-earmark groups like the Club for Growth and the RSC are “eating their own.”

“It is easier to b---h than to govern. It seems the Club for Growth, and the RSC want to complain.”

It is plain as day that we still have many Republicans as well as Democrats who continue to engage in unabashed earmarking. 

On a lighter note, Mr. Hobson and Mr. Walsh have both announced retirement plans.  Let’s hope their successors recognize the need for change. 

According to a recent report from the Washington Post, medical suppliers have billed Medicare up to $92 million dollars for wheelchairs and various other pieces of home medical equipment.  Unfortunately for the American taxpayer, those claims were filed using the names and identification numbers of deceased physicians.

Senate investigators estimate that between 384,730 and 572,238 fraudulent claims have been honored by The Centers for Medicare and Medicaid Services (CMS) since 2000. 

It's no wonder that since 1990 Medicare has been a familiar sight on the GAO's "high risk" list. 

You may remember my exchange with Rep. Charles B. Rangel last year when I questioned his earmark for $2 million for the Charles B. Rangel Center of Public Policy.

Today, the Washington Post reported on a letter writing campaign Mr. Rangel has engaged in, soliciting contributions from corporations and foundations for his Charles B. Rangel Center for Public Policy at the City College of New York.  Furthermore, these letters were sent on Congressional stationary to leaders throughout the business community, flaunting the fact that he is Chairman of the powerful Ways and Means Committee.  

Rangel has been soliciting donations from a variety of business leaders many of whom have business interests in the decisions of his committee, which has broad jurisdiction over tax policy, trade, Social Security and Medicare.

Chairman Rangel has also managed to secure two Department of Housing and Urban Development grants totaling $690,500 to help renovate the college-owned Harlem building that is slated to house the center.

That’s almost $3 million of your tax dollars, so Chairman Rangel can build a Monument to Himself. 

Ridiculous.

When will the Washington insiders get it?  Today, The Hill, a Capitol Hill newspaper reported about an earmark from Democratic Congressman Paul Kanjorski (PA), which the Department of Transportation (DOT) is actively opposing.  

The earmark, from the 2005 transportation appropriation bill is for the construction of a $5.6 million parking garage next to…..the Kanjorski Center.  The reason for the obstruction?  It does not comply with federal rules, which state “only if they are connected to other public transportation facilities outside a business area with a population of 50,000 or more, or if it serves high-occupancy vehicles (HOVs) and public mass transportation passengers.”

The DOT has taken issue with more than 20 of Mr. Kanjorski’s earmarks in the past several years, and now the local communities have problems with Kanjorski’s earmarks, because they often benefit groups associated with his family members.

To top it off, the “Kanjorski Center” which was to receive the $5.6 million parking garage currently stands empty.  That’s right, no one occupies the building but Mr. Kanjorski feels it necessary to send your tax dollars to build a parking garage.

A “monument to me”, an unused building, a parking lot, family connections, and a rules violation…No it’s not a Hollywood blockbuster….it’s the United States Congress.

Yesterday, the Congressional Budget Office (CBO), released its Monthly Budget Review, and not to my surprise it stated “The federal government incurred a deficit of $268 billion for the first nine months of fiscal year 2008, CBO estimates, $148 billion more than the shortfall recorded during the same period in 2007.”

CBO also estimates that about $79 billion of that change is a direct result of the Economic Stimulus Act that passed the House at the beginning of this year.

We are now seeing the direct effect from reckless spending without reductions elsewhere.  I have said it before and I will say it now, both Republicans and Democrats need to understand that if we continue on our current course we are on a collision course for the highest debt in American history.