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Budget Fact Check: Responsible Spending to Grow America's Economy

Budget Fact CheckRESPONSIBLE SPENDING TO GROW AMERICA'S ECONOMY

Partisan attacks claim that President Obama's budget spends too much…

In fact, the President's budget cuts non-defense discretionary spending over 10 years - to its lowest level as a percent of the economy in nearly half a century.


The President's budget:

Includes $2 trillion worth of budget savings through:

  • Ending the war in Iraq
  • Cutting programs that are not effective
  • Ending tax breaks for corporations that ship jobs overseas
  • Asking those who make $250,000 per year and have had huge tax cuts over the past eight years to pay a little more

Includes key integrity initiatives to protect taxpayer money by rooting out any waste, fraud, and abuse, saving nearly $50 billion over 10 years.  Among other things, this will:

  • Reform federal contracting and defense purchasing;
  • Reduce improper payments and strengthen efficiency in Social Security, Medicare and Unemployment Insurance programs; and
  • Step up IRS enforcement to collect unpaid taxes from those who are not paying what they owe.

The President's budget also contains critical investments that will grow the economy:

  • Makes critical investments in the modernization our nation's infrastructure.
  • Helps small businesses and innovative companies grow by eliminating the capital gains tax on small businesses and making the Research and Experimentation Tax Credit permanent.
  • Puts money in the pockets of America's workers and their families:
    • Makes permanent the $800 “Making Work Pay” tax cut for 95 percent of working families.
    • Gives 60 million seniors and people with disabilities an extra $250 by temporarily increasing Social Security and Veterans benefits.
    • Expands and extends unemployment insurance benefits for jobless Americans seeking work in this troubled economy.
    • Expands the Child Tax Credit and the Earned Income Tax Credit to help millions of families with children.
    • Permanently protects millions of middle-class families from being hit by the alternative minimum tax. 
    • Funds weatherization for low-income family homes to save working families an average of $350 per year.
  • Improves opportunities for future generations:
    • Makes the $2,500 American Opportunity Tax Credit permanent to make college more affordable.
    • Triples the number of graduate fellowships in the sciences to help foster innovation here at home.
    • Expands Pell Grants to account for inflation.
    • Modernizes the electric grid for the integration and use of greater amounts of renewable energy and increased utilization of innovative efficiency technologies.


The Obama Budget:

  • Cuts taxes (for 95 percent of American workers)
  • Cuts spending (non-defense discretionary - over 10 years - to its lowest level as a percent of the economy in nearly half a century)
  • Grows nothing but jobs
  • Cuts the deficit (in half over four years)
  • Ends an era of irresponsibility and gimmicks

Creating American Jobs means:

  • Making quality health care affordable
  • Powering our economy with clean American energy
  • Modernizing our education system

We can't afford to wait. Failure to reform and invest produced eight years of the slowest job growth in three quarters of a century.