E-Newsletter Update: Federal Deficit 226% Higher Than 1 Year Ago

Greetings!

Budget Update — Deficit 226% Higher

Last week the non-partisan congressional budget office released their Fiscal Year 2009 monthly budget review for June 2009. They found that through the first 9 months of the fiscal year (beginning October 1^st of last year), the federal government has spent $1.1 trillion more than they took in during that same time period. That's trillion with a T. That number is expected to hit a whopping $1.8 trillion by September 30^th. At this same point last year, the deficit through the first 9 months of the 2008 fiscal year was $300 billion.

Our annual federal deficit has never gone over $1 trillion in our nation's history.

The $800 billion difference compared to last June is due in part to a big drop in federal tax collections and revenue by $346 billion, and an increase in government spending by $457 billion. While the individual taxes that you and I pay fell 21% - it is taxes that corporations and businesses pay that hit the treasury hardest, falling 56% compared to last June. That is a staggering number considering that many in Washington are proposing to raise taxes on those we are also relying on to create jobs and help dig us out of this recession.

A Second Multi-Billion Dollar Stimulus ?

Some Democrat leaders in Washington are beginning to float a "trial balloon" for a second stimulus package, despite the fact that we are running the largest deficit in history and would again have to borrow more money to pay for it. For the next ten years, taxpayers will already be paying $100 million per day just for the interest on the loans needed to fund the first stimulus. That's because we didn't have the money to pay for it in the first place. If this second stimulus came to a vote, I would again vote NO.

With over 1.5 million jobs lost since the original stimulus was signed in February, and the unemployment rate far exceeding the President's promise of keeping it under 8% (it is now 9.4%), it has become clearer that the first stimulus isn't getting the job done. That's largely because the 1,000 page document which became the largest single spending bill in American history, was written by a handful of congressional leaders, fast-tracked without discussion and given to the Congress just hours before a vote.

Healthcare Shares Same Expensive Fate

The trillion dollar price tag of government-run healthcare reform (not accounted for in the deficit mentioned above) — is now being accelerated through the House and Senate in an attempt to meet an arbitrary July 31^st deadline. This could spell more expensive, ineffective, big-government mandates that will cost American taxpayers and jeopardize the quality of your health coverage. In fact, this legislation is being rushed simply because Speaker Pelosi and Democrat leaders know "the clock is ticking" and that "if the process spills into the August recess, those skeptical voters will have plenty of chances to make their views known" to their Congressman.

In other words, Speaker Pelosi and other congressional leaders want to get this disastrous legislation passed before you have the time to understand the details of what it will cost you and how it will effect your current healthcare coverage.

I'll continue to keep you updated over the next few weeks as some of these proposals are hashed out.

Till next time,

Tim Murphy

Congressman