Congressman Mike Simpson opposed the House Democrat’s budget proposal that was considered by the House Budget Committee late last night.  The proposal increases federal spending by $24 billion and raises taxes to pay for the increase. 

“The voters were very clear in November—they want less spending and more fiscal responsibility.  Based on this budget, however, it looks like Republicans are the only ones who got that message,” said Simpson.  “The one thing the Democrat Budget will do is reverse the record economic growth this nation has enjoyed since Congress enacted tax relief in 2001 and 2003.” 

The Democrat budget would create the largest tax increase in U.S. history, allowing important tax cuts for American families and pro-growth policies to expire in 2011. The Marriage Tax Penalty relief, the Child Tax Credit increase and the Estate Tax relief will all be gone. Families who are married will pay more than if they were single, the child tax credit will be cut in half and the estate tax returns full force. 

Republican tax relief has led to unprecedented economic growth and dropped the unemployment rate.  More importantly, tax relief gives back to Americans their own money. The robust economic growth in this nation over the past few years is proof that individual Americans use and invest their dollars much more wisely than the federal government does. 

Congressman Simpson is also concerned that the Democrat Budget Proposal ignores the reality of our nation’s fiscal situation by not addressing the out-of-control growth of entitlement spending.  “We owe it to our children and grandchildren to start fixing this problem that gets worse each year,” said Simpson. “Both Federal Reserve Chairman Bernanke and US Comptroller General Walker warned us that increases in entitlement program spending are causing growing deficits that cannot be solved by higher tax rates or even faster economic growth, we must start making tough decisions today for future generations.” 

The FY 2008 Budget will be considered by the House of Representatives next week.