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Statement

Dear Neighbor:

This week President Obama released his Fiscal Year 2012 budget. Rather than confronting our fiscal challenges head on, the President chose to avoid hard choices. He even ignores the recommendations of his own fiscal commission which called for $4 trillion in cuts over ten years; his budget only calls for $1.1 trillion in cuts over that time period which will result in more spending, increasing the debt by $7.2 trillion over 10 years.

President Obama's budget also paints a much rosier economic picture in the coming years than other government and private sector economic forecasts. While the nonpartisan Congressional Budget Office (CBO) predicts GDP growth to be at 2.8% in 2012, President Obama's budget predicts growth at 3.6%. His budget then attributes an additional $1.7 trillion in increased tax revenue to this growth. As a former small business owner, I always used the most conservative estimates in predicting future growth and I believe the federal government should do the same. I think it is irresponsible to plan on receiving increased tax revenue based on unrealistic economic predictions.

Finally, the President's budget includes $1.6 trillion in tax increases over ten years. Increased taxes will hit small businesses, families and job creators and further stifle our economy. As a member of the Budget Committee, I will be working with Chairman Paul Ryan and other committee members to draft a fiscally responsible FY2012 budget that does not ignore our dire fiscal situation and makes the hard choices necessary in order to ensure our long-term financial security.

Key facts from the President's Fiscal Year 2012 Budget (source: House Budget Committee, Majority Office):

Spending

* $3.8 trillion in spending this year; 25.3% of GDP (highest since WWII)
* $46 trillion in spending over the decade; $8.7 trillion in new spending

Tax Hikes

* $1.6 trillion tax hike on families, small businesses, and job creators
* Revenues as a percent of GDP climb to 20%

More Debt

* $1.6 trillion deficit for FY2012; a record third straight trillion dollar deficit
* Doubles and then triples debt held by the public since President took office
* $13 trillion added to the debt over the decade

Sincerely,
Ken Calvert
Member of Congress

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