February 6th, 2010
10:16 AM ET
4 years ago

GOP takes aim at Obama's budget

(CNN) – In the weekly Republican radio and Web address, Rep. Jeb Hensarling of Texas takes President Obama to task over the size of his new budget proposal.

“The numbers in his budget are simply breathtaking: a record $3.8 trillion in spending, more than $2 trillion in new job crushing taxes, not to mention a tripling of the national debt – on top of the largest deficit in our nation’s history. Interest payments alone on this debt will set us back roughly $6 trillion over the next decade – that’s about $50,000 per household," Hensarling says in the address.

Full transcript after the jump

“Hi, I’m Congressman Jeb Hensarling of Texas; I serve as the number two Republican on the House Budget Committee. Some of you may have seen me on television last week when I had the opportunity to ask the President if his new budget would once again triple the national debt and dramatically increase the cost of government to 25% of the economy – up from its traditional 20%.

“You may recall that the President declined to answer the question last week. But he has certainly answered it this week by submitting a new budget that does just what I feared.

“The numbers in his budget are simply breathtaking: a record $3.8 trillion in spending, more than $2 trillion in new job crushing taxes, not to mention a tripling of the national debt – on top of the largest deficit in our nation’s history. Interest payments alone on this debt will set us back roughly $6 trillion over the next decade – that’s about $50,000 per household.

“Now, you’re probably like me and believe, in America, you ought to work hard today, so your children can have a better, more prosperous tomorrow. But with this budget, it is like Washington has said, ‘let’s let government live easier today, so our children have to work harder tomorrow.’

“You know, it was about this time last year, President Obama and Democrats in Congress promised that if we passed their trillion-dollar ‘stimulus’ bill – and grew big government even more – that jobs would be created ‘immediately.’ [and] they said unemployment would remain below eight percent.

“Well, Republicans stood on principle and offered a better alternative that, according to an analysis developed by the President’s own economic advisors, would have created twice the jobs at half the cost. But, Democrats chose to go it alone and jam through their ‘stimulus.’ What did the American people get? A bill for $1.2 trillion and 3 million more jobs lost.

“Americans are still asking, ‘where are the jobs? Where ARE the jobs?’ But all they are getting from Washington is more spending, more taxes, more debt and more bailouts.

“Now, when it comes to budget matters, I usually find myself agreeing with about 80% of what the President says, but I DISAGREE with 80% of what he does.

“While the President’s budget rhetoric gives a nod to reducing the deficit, he punts the problem to a ‘commission’ that does not yet exist, and whose recommendations may never see the light of day. We have to do better.

“Additionally, President Obama’s proposed spending freeze unfortunately is not really a freeze at all. It exempts 86% of the federal budget from the freezer, does not turn on the freezer until next year and then turns it off shortly thereafter. In fact, when you run the numbers, the President’s idea of fiscal responsibility unfortunately amounts to choosing to grow government by 49.01 percent over 10 years instead of 49.27 percent. We have got to do better.

“Serious fiscal responsibility requires more than just tinkering around the margins. Republicans have proposed adopting strict budget caps that limit federal spending on an annual basis and are enforceable by the President. These caps were a critical plank in the fiscally-responsible budget alternative Republicans proposed last year and yet they are notably absent from the President’s budget.

“The federal budget must never be allowed to grow faster than the family’s budget ability to pay for it. You can learn more about our better Republican budget solutions on the web at solutions.gop.gov.

“So, you pile up all this Democratic spending, all their borrowing and all their debt, you add it to their government takeover of health care, their ‘cap-and-trade’ national energy tax and their continued bailouts – is it little wonder that job growth is lagging in our economy? Small business owners and investors tell me every week, We’re not taking the risk to start or expand our business in this climate.

“We cannot continue on this reckless path, and the American people know it. But now it’s up to Democrats in Washington to listen and change course. We’re willing to work with them, but we will continue to stand on principle, we will oppose more reckless Washington spending, and we will fight for better solutions that make government live within its means. Our budget plan will help create jobs, prevent a fiscal calamity and give our children a brighter economic future.

“Thank you for listening.”


Filed under: GOP • President Obama
soundoff (129 Responses)
  1. Enough

    Obamas budget.............ha, now that's funny. Spending us into oblivion is NOT a budget.

    February 6, 2010 01:43 pm at 1:43 pm |
  2. harold

    Small government a no funding to fight the Terrorists .. fight the Great Recesion.. and fight for jobs in te USA....Which is it Republcians.?. You want to give us all small governmnt to do all this?

    February 6, 2010 01:49 pm at 1:49 pm |
  3. Taylor

    Where was all this principle under Bush?

    February 6, 2010 01:51 pm at 1:51 pm |
  4. Jilli

    After he was publicly embarrassed and his comments demolished by the President in Baltimore, I'm actually surprised that Mr. Henserling would go for a second round.

    I find it laughable and incredible that the republicans continue the "fiscally responsible" and "fiscally conservative" facade when history and facts prove that they have been anything but.

    It's the same old drivel, promoting failed philosophies that landed us in this fiasco. And we're supposed to believe that they have the better way? Look at our reality. He must think we're as stupid as he is.

    Sorry Mr. Henserling, I'm not buyin' what you're selling.

    February 6, 2010 01:52 pm at 1:52 pm |
  5. Jim

    Raise taxes to pay for the wars. Take the pork out of the military. Tax the corporations that outsource jobs. Tax the banks to recover all the bailout money. Do not allow mortages to be tax deductable. Lower speed limits to 65 mph to save oil. Put a $100 FEDERAL tax on all speeding tickets. Sell "war bonds".

    Jobs are lagging because the biggest companies that were bailed out didnt hire. They just paid bonuses to many of the people who created this mess. Stimulate and support local banks and credit unions.

    February 6, 2010 01:57 pm at 1:57 pm |
  6. Top Gun

    Hank Paulson (President Bush’s Secretary of the Treasure) defined the GOP best in his speech on “morale hazard”. For the record per Hank Paulson, the catechism of “moral hazard” is, “if you bail someone out of a problem they themselves caused what incentive do they have the next time not to make the same mistake.” America ask yourself, who in their right mind would vote for the group that drove the country into the ditch for eight (8) years, and now two (2) years later they still have “no new ideas”? ….Simple! Simple! Simple! Just remember what Paulson said about the catechism of “moral hazard”.

    BEWARE! BEWARE! BEWARE!…….In the 1980’s Ronald Reagan ushered in a new era in American economics as he cut the top tax bracket from 70% down to 50% and then down again to 28%. In order to get support for doing this from the people, and also from politicians, a very crafty set of lies were produced. As David Stockman, then Reagan’s budget director, put it: giving small tax cuts across the board to all brackets was simply a “Trojan Horse” that was used to get approval for the huge top tax bracket cuts. “Trickle-Down” was a term used by Republicans that meant giving tax cuts to the rich. Stockman explains that: There is no realistic way for "Trickle-Down" economics to work to increase the income of the working classes of America. In fact I am certain that the developers of the theory of "Trickle-Down" economics were fully aware of this and that "Trickle-Down" has in fact worked as intended. This means that the intent behind implementing "Trickle-Down or Supply-side theory” was to benefit the wealthiest Americans at the expense of working class Americans. "Trickle-Down" hasn't failed, as many modern economists have suggested, it has succeeded in its goals, which is the increase of economic inequality and the shift of a greater portion of America's wealth into the hands of the wealthiest Americans. And too there were tax increases in the “Trickle Down”, these increases fell mainly on consumers, low- and middle-income people. Sales and excise levies. Reagan didn't call these taxes. They were, in his euphemistic lexicon, "user fees" and "revenue-enhancers." The tax increases were to help minimize the budget deficit.

    February 6, 2010 02:09 pm at 2:09 pm |
  7. Michael from Ventura

    Funny that they failed to mention how we got into this mess..........They are hypocrites beyond belief!

    February 6, 2010 02:10 pm at 2:10 pm |
  8. thanks, but no thanks

    Stop it already and start working for the future of the country not just Texas. There are not any numbers not included in budget like during the Bush years where Pentagon money for wars was not included. Stop being full of it...

    February 6, 2010 02:11 pm at 2:11 pm |
  9. Bill, NY

    The republicans are fairly adept at deflecting the blame from where it truly belongs: themselves. The democrats have problems, but the republican mindset is the true problem for this country. The roots of unemployment and the financial crisis can be traced directly to republican policies. The republicans have made it easy for unscrupulous bankers and big business to do a major number on this country. It should be obvious that tax breaks for the rich and big corporations has not worked. Just look at the results. The only thing that has trickled down is misery.

    February 6, 2010 02:11 pm at 2:11 pm |
  10. Jordan Wrenn

    Please do a fact check on this...especially the business tax. They need to stop confusing a tax on well paid individuals with a tax on business.

    February 6, 2010 02:15 pm at 2:15 pm |
  11. Tim

    "Republicans have proposed adopting strict budget caps that limit federal spending on an annual basis and are enforceable by the President. These caps were a critical plank in the fiscally-responsible budget alternative Republicans proposed last year and yet they are notably absent from the President’s budget."

    Just like Obama's plan, that will do NOTHING to resolve the deficit issues. If this guy is serious about getting a balanced budget, he needs to propose either massive cuts in all entitlement spending, or massive tax increases. Cuts would mean cuts in the social security, medicare coverage, and medicaid coverage being offered right now. It would also mean delayed participation for future retirees, and more stringent standards for coverage for welfare.

    Absent such drastic cuts, we'll need massive tax increases on all Americans do curb the deficit.

    So what's it gonna be, Congressman? Put up or shut up!

    February 6, 2010 02:18 pm at 2:18 pm |
  12. Larry - Hazleton, pa

    Well we can always let the republicans return to the party of HOOVER and we could all see what that would get us – the party of "NO" only wants to get in the way – they offer no leadership – no new ideas – so in the words of Iacoca – lead , follow or get the hell out of the way. All of what the repubs would want to do have been done before and failed – time to get out of the way.

    February 6, 2010 02:19 pm at 2:19 pm |
  13. Renee

    Republicans stood on principle of no. No health care and on jobs.

    February 6, 2010 02:20 pm at 2:20 pm |
  14. Bob (Illinois)

    As usual the GOP has a distorted view of reality. The fail to make the distinction between short- and long-term deficit.

    February 6, 2010 02:28 pm at 2:28 pm |
  15. steve

    GOP talking points. Nothing new. Same old no.

    February 6, 2010 02:34 pm at 2:34 pm |
  16. CBH

    Rep Hensarling, I am sorry to pose a serious question during you 15 minutes of fame. Tell me, is there a course of action that the GOP can agree with the President on? Can a man of President Obama's intelligence be wrong everytime? I am tired of hearing about how wrong the president is on every single issue. Your party had their chance to be conservative, but all they did was increase our national debt. So please spare us the grandstanding and come up with some real solutions to our everyday problems. If our elected officials can not provide any useful life solutions to the American people, then maybe you and all of your buddies should be voted out of office.

    February 6, 2010 02:39 pm at 2:39 pm |
  17. David in Oregon

    Instead of attacking President Obama's budget I would like to hear specific details from the GOP's proposed budget. What specifically would they cut from the spending side? What taxes would be increased to close the deficit gap? I don't see or hear the details.

    February 6, 2010 02:39 pm at 2:39 pm |
  18. Brandonious

    This is the guy who earned himself a "false" on politifact.com for his remark at the republican retreat regarding budget issues. I'm thinking that he's full of BS.

    February 6, 2010 02:40 pm at 2:40 pm |
  19. Looking for a new Party?

    Do you believe in Smaller Government, More Freedom, Lower Taxes, fical responsibilites, not sending our military out to be the world's police force, keeping the goverment out of personal matters....

    Then look at the platform of the party of principal, The Libertarian Party

    Its time for a Change. The Democrats and Republicans have had their chance for far too long and we can see where they have taken us.

    Lets give the Libertarian Party a chance.

    February 6, 2010 02:40 pm at 2:40 pm |
  20. Brian in California

    Yes, but what the GOP has the inability to understand is that this spending is only for a couple of years (counting 2009) to continue pulling us out of the recession (which it has already done) afterwhich this spending will be curtailed. They ALSO are unable to take ANY blame for the debt we're in now. It was thier debt spending that created a HUGE chunk of what we have now and Bush's budget deficit when Obama took office was $1.3 trillion. Compare that to when the last Democrat left the Presidency with a budget surplus.

    Oh yes and remember the "nuclear option" they are so fond of warning against the Dems using on healthcare...? That was reconciliation or passing a bill with a simple majority. The Republicans did use this EXACT same process to pass the huge debt creating spending packages that accrued the huge part of the deficit we have now.

    Time to hold the GOP accountable for the mess they contributed a helluva lot to.

    February 6, 2010 02:44 pm at 2:44 pm |
  21. Mesa Mick

    This Texas Teabagger is lying and distorting the budget facts pure and simple.

    Remember folks – Facts don't lie but liars can figure so if the facts are not on your side twist them up so they are – That's what this GOP brown shirt is doing – twisting the facts to make a false argument...

    February 6, 2010 02:55 pm at 2:55 pm |
  22. scott

    so, they hate the deficit. they hate the spending. they hate taxes. if we cancelled every dime of federal spending, the deficit for this year would still be close to a trillion dollars. what solutions do they offer? none. a group that screams about the problem but offers no solutions isn't contributing to the conversation. so why do people listen to them?

    February 6, 2010 02:58 pm at 2:58 pm |
  23. Abe

    Tell the congressman that the president does not have to answer to him. Republicans should stop scaring people and our kids that they will be paying for this massive budget. We are in an economic crisis that was brought about by his party. I do not hear any proposal from his party except there deep rooted scare they are spreading around the country to oppose the president at every level. His talks about a huge budget but can he answer to the American people what happened with the surplus that Mr. Bush inherited from the Clinton presidency. His party and him do not want to say we "BLEW" it and tell our kids we can take the blame. The American people are not stupid and understand who is telling the truth. You advocate that the government lives within its means, so what happened the last eight years when your party ruled the country. Good politics is when you accept your mistakes and try to work in a bipartisan manner to solve the economic problem of the country. As far as the heath program, see what you politician are enjoying at the expense of the voters who voted for you. This a land of opportunity but should not be governed by a bunch of lobbyists that fill up there pockets at the expense of the American people. We all have the right to stay healthy. God Bless out country.

    February 6, 2010 02:58 pm at 2:58 pm |
  24. gary davis harbor oregon

    this comming from the vary people who got us into this mess in the first place . no credability . and still just as theving and lieing as always .its all about the CEO'S of big business and the corporate world of a few hundred wealthy people . not having to pay there fare share to the people government US .. me and you america :)

    February 6, 2010 03:01 pm at 3:01 pm |
  25. Carl Justus

    I get tired of hearing a bunch of republicans who are criticizing Obama and the democrats while they and Bush ran up 6 TRILLION DOLLARS OF DEBT IN 8 YEARS AT THE RATE OF 1.8 BILLION DOLLARS FOR EVERY DAY BUSH WAS IN OFFICE.

    The republicans thought that was great, they gave their owners, (lobbyists and their employers) the three biggest tax cuts in history and then went out and borrowed from China, Saudi, Arabia, South Korea, and others to keep giving the rich massive tax cuts while the only people to sacrifice for a war of ego building with Iraq was costing a TRILLION DOLLARS AND COUNTING.

    The republicans even sent a BILLIONS OF DOLLARS IN ONE HUNDRED DOLLAR BILLS TO IRAQ TO PAY OFF THE NATIONS THAT WERE SAYING THEY BACKED BUSH'S POLICIES AND HAD A FEW MEN UP TO A FEW HUNDRED THEY WERE PAYING OFF IN CASH.

    That was going so good for them THAT BUSH'S TEAM IN IRAQ LOST 9 BILLION OF THOSE 1 HUNDRED DOLLAR BILLS AND NO ONE HAS EVER FIGURED OUT THEY SAY WHAT HAPPENED TO THE 9 BILLION DOLLARS IN CASH THEY JUST LOST.

    When you have intellectually irresponsible people in charge that is what happens and then they point fingers at everyone who is trying to do a good job and get the economy back from where it was when those responsible ran it into the ground.

    Bush came into office with a 236 BILLION DOLLAR SURPLUS IN THE BUDGET AND LEFT WITH A 1.2 TRILLION DOLLAR DEFICIT IN THE BUDGET.

    If you had invested 10,000 dollars in the stock marker on the first day Bush took office and sold on the last day he was in office, YOU WOULD HAVE HAD THE GRAND TOTAL OF 9236 DOLLARS. WHAT A PRESIDENCY!!!!!!!!!!!!!!!!!!111

    February 6, 2010 03:01 pm at 3:01 pm |
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