Research Briefing

Obama Democrats Want To Raise Limit On America’s Credit Card So They Can Increase Their Out-Of-Control Spending Next Year

RNC CHAIRMAN MICHAEL STEELE: “President Obama and Congressional Democrats have engaged in out-of-control binge spending with our nation’s credit card this past year while Americans suffered through this painful fiscal hangover.  Now instead of cutting up that credit card, Democrats plan to increase the credit limit by an unprecedented $1.8 trillion so they can take their binge spending into overdrive. This, along with their trillion dollar health care concoction, is good reason for American voters to stage an intervention at the polls next November.”

OBAMA, DEMS LOOKING TO INCREASE LIMIT ON AMERICAN TAXPAYERS’ CREDIT CARD …

Dems Look To Increase Debt Ceiling By $1.8 Trillion, Nearly Double What Obama Asked For. “In a bold but risky year-end strategy, Democrats are preparing to raise the federal debt ceiling by as much as $1.8 trillion before New Year’s rather than have to face the issue again prior to the 2010 elections … [House Majority Leader Steny Hoyer] confirmed that the anticipated increase could be as high as $1.8 trillion — nearly twice what had been assumed in last spring’s budget resolution for the 2010 fiscal year.” (David Rogers, “Dems To Lift Debt Ceiling By $1.8 Trillion, Fear 2010 Backlash,” Politico, 12/9/09)

Even Though Debt Ceiling Was Already Increased By $789 Billion This Year. “If Congress agrees to the Treasury's request it would mark the second increase in the debt ceiling this year. The economic stimulus package passed by Congress earlier this year increased the debt ceiling by $789 billion to $12.1 trillion.” (Michael R. Crittenden and Patrick Yoest, “Lawmakers Urged to Raise Nation's Debt Limit,” The Wall Street Journal, 8/10/09)

BECAUSE THEY WANT TO ENGAGE IN MORE BINGE SPENDING NEXT YEAR …

House Dems Rush Through Passage Of $450 Billion Omnibus Spending Bill. (H.R. 3288, Roll Call Vote #949; Approved 221-202; D 221-28; R 0-174, 12/10/09)

Bill Increases Non-Defense Discretionary Spending By 12 Percent Over Last Year. “The bills were consolidated in an ‘omnibus’ spending bill because Congress failed to consider them individually. It will increase non-defense spending by 12 percent over last year.” (Rep. Pete Hoekstra, “Hoekstra Criticizes Half-Trillion Dollar Spending Bill,” Press Release, 12/10/09)

Obama’s Stimulus II Could Cost Almost $300 Billion. “The cost of a new jobs bill Democrats hope to move early next year runs to nearly $300 billion when major proposals under serious consideration are added up.  Lawmakers are calling for extending aid to the unemployed, infrastructure spending, a hiring tax credit and increased small business loans.” (Walter Alarkon, “Job Proposals From Democrats Could Add $300 Billion In New Federal Spending,” The Hill, 12/3/09)

House Dems Pushed Through Obama’s $1.2 Trillion Government-Run Health Care Experiment. “The health care bill headed for a vote in the House this week costs $1.2 trillion or more over a decade ...” (David Espo, “AP Sources: House Health Bill Totals $1.2 Trillion,” The Associated Press, 11/2/09)

Senate Dems’ Version Of Obama’s Health Care Experiment Costs $940 Billion. “To get a fair read on the total cost of the health bills, we should therefore add together the gross cost of coverage expansions and the cost of the other provisions that increase spending (or decrease revenues) … the real gross cost of the Senate health bill is $940 billion over ten years…” (Donald Marron, “How Much Does The Senate Health Bill Cost?” Donald Marron’s Blog, 11/19/09)

AFTER BINGE SPENDING THIS YEAR CREATED HORRIBLE DEFICIT HANGOVER

In February, Obama Signed $787 Billion Stimulus Bill, Claiming It Would “Fix The Economy.” “President Obama on Tuesday signed the $787 billion stimulus package … ‘We have begun the essential work of keeping the American dream alive in our time,’ Obama said, calling the legislation ‘the beginning of the end’ of what needed to be done to fix the economy.”  (Michael A. Fletcher, “Obama Leaves D.C. To Sign Stimulus Bill,” The Washington Post, 2/18/09)

But Since Then, Over 2.8 Million Jobs Have Been Lost, Unemployment At 10 Percent. (U.S . Bureau of Labor Statistics, www.bls.gov, Accessed 12/10/09)

In March, Obama Signed $410 Billion Omnibus Spending Bill Containing Over 8,500 Earmarks Worth $7.7 Billion. “President Barack Obama signed a $410 billion spending bill Wednesday … that includes more than 8,500 pet projects worth $7.7 billion.” (Jonathan Weisman and Greg Hitt, “Obama Outlines Plan To Curb Earmarks,” The Wall Street Journal, 3/12/09)

Obama’s Spending Record Deficit Of $1.42 Trillion In Fiscal Year 2009, Three Times More Than Record Last Year “The Obama administration has released new deficit numbers, and they are not pretty. The deficit for fiscal year 2009, which ended Sept. 30, came in at a record $1.42 trillion, more than triple the record set just last year.” (David Jackson, “Obama Team Makes It Official, Budget Deficit Hits Record. By A Lot,” USA Today's “The Oval” Blog, 10/16/09)

Obama’s Budget Creates $9 Trillion Deficit Over Next Decade, And National Debt Of $23 Trillion In 2019, Equal To Almost 75% Of GDP. “The nation would be forced to borrow more than $9 trillion to support President Obama's initiatives and other federal programs over the next decade ….Deficits of that magnitude would require dramatically more government borrowing from China and other creditors, driving the accumulated national debt to nearly $23 trillion in 2019 -- or 76.5 percent of yearly gross domestic product, the highest proportion since 1950, the White House said.” (Lori Montgomery, “Deficit Projected To Soar With New Programs,” The Washington Post, 8/26/09)

AMERICANS ARE TELLING DEMS TO SHAPE UP OR FACE AN INTERVENTION IN NOVEMBER

Rasmussen Poll: “Deficit Reduction Has Remained Number One For Voters … 42 Percent Say Cutting The Deficit In Half By The End Of the President’s First Term Is Most Important.” (“Budget Priorities,” Rasmussen Reports, 11/20/09)

“60% Of Voters Believe Passage Of The Health Care Legislation Will … Increase The Deficit.” (“60% Say Passage Of Health Care Reform Will Increase Deficit,” Rasmussen Reports, 12/1/09)

Bloomberg Poll: 57 Percent Of Americans Disapprove Of Obama’s Handling Of Deficit. “Americans are more critical than not of Obama’s handling of the economy and particularly negative, at 57 percent disapproving, about his management of the federal budget deficit …” (Heidi Przybyla and Nicholas Johnston, “Obama’s War Plan gains Amid Doubts On Domestic Policy,” Bloomberg, 12/9/09)

CNN Poll: Nearly 4 Out Of Every 5 Americans Believe Obama’s Health Care Experiment Will Increase Federal Budget Deficit. (CNN-Opinion Research Poll, 12/10/09)

Republicans Leading Democrats In Generic Congressional Matchups. “Republicans lead Democrats in a test of generic congressional matchups, a new poll found Thursday. 42 percent of likely voters said they would prefer a generic Republican candidate for Congress versus 38 percent who said they would prefer a generic Democrat, according to a Bloomberg News poll released Thursday.” (Michael O’Brien, “GOP Leads Dems Among Likely Voters In Generic Ballot,” The Hill, 12/10/09)