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Budget Fact Check: Responsible 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.