Congressman Larry Bucshon on President's Debt Plan

Press Release

Congressman Larry Bucshon (IN-08) released the following statement in response to President Obama's plan for deficit reduction.

Congressman Bucshon (IN-08) states:

"While we can all agree that our deficit needs to be dramatically reduced, we should also agree that raising taxes during a recession to fund more failed stimulus spending will not create jobs and will further hamper economic growth. We need a long-term plan, not another short-term political speech designed to get through the next election. Today, we hear more of the same class warfare rhetoric from the Obama Administration, which has already been rejected by the American people.

I was sent to Washington, D.C. to cut wasteful spending and reign in a wasteful federal government. In order to create long-term jobs, we need long-term reforms. This is why I want to end onerous regulations on job creators, reform the tax code to make it more competitive for businesses and individuals, and stop this out-of-control spending binge. To get Hoosiers back to work and tackle our rising deficit, we cannot allow the tax, borrow, and spend policies of the past to continue."

Background:

In an August 5, 2009 interview with MSNCB's Chuck Todd, President Obama stated, "Normally, you don't raise taxes in a recession, which is why we haven't and why we have instead cut taxes….you don't raise taxes in a recession." Read the interview here.

In testimony to the Joint Select Committee on Deficit Reduction on September 13, 2011, Congressional Budget Office (CBO) Director Douglas Elmendorf said the non-partisan agency sees economic growth of 1.5 percent this year and 2.5 percent in 2012, down from their August estimate of 2.3 percent and 2.7 percent. Director Elmendorf also stated that unemployment is expected to remain at 9 percent through 2012.

On August 29, 2011, the Bureau of Economic Analysis (BEA) revised the second quarter Gross Domestic Product (GDP) downward to annual rate of 1 percent. The first estimate of 1.3 percent growth was released in July. Real GDP grew at an annual rate of 0.4 percent during the first quarter of this year.

The jobless rate for the month August was 9.1 percent; net zero jobs were created for the first time since World War II.

Since taking office, the federal deficit has increased over $4 trillion under the Obama Administration.

Source