Lummis: Obama Budget is Wrong Recipe for America's Economy

Press Release

Lummis: Obama Budget is Wrong Recipe for America's Economy

U.S. Representative Cynthia Lummis, R-Wyo., a member of the House Budget Committee, is working to stop a provision contained in President Obama's budget to raise energy costs for consumers and send up to 1.5 million American jobs overseas. The Budget Committee is debating the President's Fiscal Year 2010 (FY10) $3.6 trillion budget proposal today.

"This Congress, led by the Democratic leadership, wants to authorize President Obama to spend money we don't have," Lummis said. "This budget taxes too much, spends too much and borrows too much. It will lead to deficit levels never before seen in this nation. These deficits will simply get piled onto the already growing burden of debt that threatens to crush future generations."

The Congressional Budget Office estimates that the debt associated with this budget will be $2 trillion higher than the amounts the Administration has suggested. In President Bush's 8-year tenure, the national debt rose by $4.9 trillion. President Obama's budget, however, will increase the debt by $5.6 trillion - in just 3 years. It will also double the debt held by the public in less than 6 years - and nearly triple it in 10 years.

Lummis is seeking to amend the President's budget proposal to prevent the enactment of a cap and trade emissions policy or a tax on the carbon content of products.

"People in Wyoming know that you cannot tax and spend your way into economic prosperity. Common sense tells you not to raise taxes during a recession."

Obama's budget includes a new policy to cap and tax overall carbon emissions and auction off carbon credits imposing an estimated $646 billion cost to consumers over 10 years by making carbon-based energy more expensive.

"Every family in Wyoming will be directly impacted by the proposed cap and tax. If you have electricity in your home or in your office, or drive a car, or heat your home, you will be paying the new carbon tax."

Numerous studies conducted by universities, industry groups, and government agencies all agree that cap and trade would dramatically increase energy prices and hurt the economy.

The Environmental Protection Agency says electricity prices will increase between 44 and 79 percent and gasoline prices will rise by $0.61 and $1.60 per gallon. When the costs of other consumer goods are included, the Congressional Budget Office estimates Americans would need to spend an extra $1,600 a year on average under this new policy.

"Families today are facing very difficult economic times. If we act wisely, and responsibly, we can turn things around. If we follow the path this budget lays out, we will be digging a hole so deep we may just bury the hopes and dreams of America's next generation."

Other Lummis amendments to the Obama budget include preserving the guaranteed student loan program and protecting private sector jobs, recovering 100 percent of the bonuses given to AIG executives, and encouraging the creation of a Job Corps center in Wyoming.

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