Sanders Opposes Bush Administration Plan to Dramatically Raise National Debt Ceiling

Sanders Opposes Bush Administration Plan to Dramatically Raise National Debt Ceiling
1/3/2006

Republican Proposal would Raise Debt Ceiling by $781 Billion while Continuing Huge Tax Cuts for the Wealthy

Washington, D.C. - Rep. Bernie Sanders today voiced his strong opposition to the Bush Administration's attempt to dramatically increase the U.S. debt ceiling. The Administration recently stated that if Congress doesn't increase the national debt ceiling, the United States may have to default on its debt obligation for the first time in history. In response, the Republican Leadership has proposed raising the debt ceiling by a whopping $781 billion. Since the Republicans took control of the White House, the Senate, and the House of Representatives five years ago, they have racked up the largest debt in our nation's history while passing hundreds of billions of dollars in tax cuts for millionaires and billionaires. Because of this record-breaking spending, the U.S. is expected to overtake the current debt ceiling of $8.2 trillion by mid-February.

Sanders said, "It is absolutely absurd for this Administration to ask for even more tax breaks for millionaires and billionaires while our country is being driven deeper and deeper into debt. Today, the share of the national debt for every man, woman and child in America totals $27,000, and last year we had to spend $182 billion just to make interest payments on the national debt. It is immoral to ask our children and grandchildren to assume more and more debt while they pay for tax breaks for the wealthiest people in this country. Unless we repeal the Bush tax breaks for the wealthy and put an end to corporate welfare we will continue to recklessly harm the future of this country."

Below is a fact sheet on the national debt and federal deficit under the Bush Administration and Republican Congress; and some ideas supported by Sanders and others in Congress to reduce the deficit.

FACTS ABOUT THE NATIONAL DEBT AND FEDERAL DEFICIT UNDER THE BUSH ADMINISTRATION AND REPUBLICAN CONGRESS

** Under President Bush, we have gone from a projected 10-year federal surplus of $5.6 trillion to a projected deficit of $3.5 trillion - a reversal of $9.1 trillion.

** The national debt has increased by over 62% since President Bush took office and is now over $8 trillion for the first time in our nation's history. Today, ever man, woman and child living in America owes $27,000 just to finance the national debt.

** Under President Bush, interest on the national debt has become the fastest growing category of spending in the budget. In 2004, the federal government had to spend $182 billion just to make interest payments on the national debt, more than triple all appropriations for education, and more than 5 times the amount spent on the environment and veterans' health care. By 2015, under the Bush agenda, these net interest payments will rise to $458 billion or about what we now spend defending this country.

** Incredibly, President George W. Bush has now borrowed more money from foreign governments and banks than the previous 42 U.S. presidents combined.

** Throughout the first 224 years (1776-2000) of our nation's history, 42 U.S. presidents borrowed a combined $1.01 trillion from foreign governments and financial institutions according to the U.S. Treasury Department. In the past four years alone (2001-2005), the Bush Administration has borrowed a staggering $1.05 trillion.

** What is the number one reason we have gone from a projected 10-year federal surplus of $3.5 trillion to a projected $5.6 trillion national deficit? Bush's tax policies. According to the Congressional Budget Office, 48% of the deficit is attributable to Bush's tax cuts - more than any other policy initiative.

PROPOSALS TO REDUCE THE FEDERAL DEFICIT AND

RESTORE FISCAL SANITY

** Rescind tax breaks for the wealthiest one percent. By 2010, rescinding these tax breaks will save $578.5 billion, according to Citizens for Tax Justice.

** Allow Americans to purchase prescription drugs from Canada and the EU and remove the prohibition in the new Medicare law that prevents the federal government from negotiating lower drug prices from the pharmaceutical companies. This would result not only in huge taxpayer savings, but in lower prescription drug costs for all Americans and a much better and more affordable Medicare prescription drug bill for seniors.

** Repeal all existing tax breaks for the oil and gas industry, and establish a windfall profits tax on big oil companies. By ending these tax breaks and establishing a windfall profits tax, we could generate as much as $260 billion in revenue over the next decade and consumers would no longer be gouged at the pump.

** Preserve the estate tax for millionaires and billionaires. Some in the Republican leadership want to completely eliminate the estate tax so that the wealthiest Americans can receive a tax break while millions of children in America live in poverty. This is wrong. Preserving the estate tax would generate $982 billion over the next 20 years.

** End corporate welfare and tax breaks to companies that are shipping jobs overseas. Sanders will be re-introducing legislation to end billions in corporate welfare to companies that lay off a greater percentage of American workers than workers overseas.

http://bernie.house.gov/documents/document.asp?issueNum=4727