This is an "edited" article by Stephen Ohlemacher
to be released March 23, 2015 by Associated Press
under the Title: "Fact Check".
The new House and Senate Republican budgets make a big boast: They both balance the federal budget within 10 years, without raising taxes.
The Republican's proposals would leave a $90 BILLION shortage each year for the next 10 years!
Their own numbers, however, say millions of American families and businesses would have to pay more in taxes to make the math work — about $900 billion more over the next decade.
Both the Republican Senate and Republican House budgets claim big savings by repealing President Barack Obama's health law. But at the same time, they rely on more than $1 trillion in tax revenue from the health law that they would supposedly repeal.
The two Republican nonbinding political documents that lack details, especially when it comes to taxes. It provides important insight into how majority Republicans in Congress would tackle the federal government's finances.
THE CLAIM: "First and foremost, we balance the federal budget in less than 10 years by reducing spending by $5.5 trillion — without accounting gimmicks or higher taxes." —Rep. Tom Price, R-Ga., chairman of the House Budget Committee, in a published opinion article.
"Republicans have put forward a responsible plan that balances the budget in 10 years with no new tax hikes, that protects our most vulnerable citizens, it strengthens our national defense, and it improves economic growth and opportunity for hardworking families." —Sen. Mike Enzi, R-Wyo., chairman of the Senate Budget Committee.
THE FACTS: Both Republican budgets say they will generate $41.67 trillion in revenue over the next decade. That is very close to the $41.75 trillion that would be generated under current law, according to the nonpartisan Congressional Budget Office.
<The LIE exposed not by President Obama's Executive Department's fiscal estimates, but the Congressional Budget Office's own nonpartisan fiscal staff.>
Current law assumes that more than 50 temporary tax breaks that expired at the start of the year will not be renewed. They include tax breaks for businesses big and small, as well as provisions that benefit commuters, teachers and struggling homeowners.
All together, the tax breaks add up to $898 billion over the next decade, according to CBO.
Do congressional Republicans really want to eliminate $898 billion in tax breaks?
No! NOT TO DATE!
Most Republicans in Congress have voted numerous times to temporarily extend them. And over the past year, the Republican-controlled House has voted to make some of the more popular ones permanent.
Then why don't the Republican budget resolutions reflect the costs of providing those tax breaks?
<How many times have we heard this before?>
Republican budget writers assert that they can fill the revenue gap by simplifying the tax code and making it more competitive.
Both GOP plans call for overhauling the taxes paid by individuals and businesses. Without providing many details, they count on that overhaul to spark more economic growth, which would generate additional tax revenue.
<What cutting taxes to create more taxes? When has that ever worked?>
"Our budget calls for comprehensive tax reform that would include lower rates for individuals and families as well as large corporations and small businesses who often file their tax returns through the individual side of the tax code," says the House plan. "Along with lower rates, we propose broadening the tax base by closing special-interest loopholes that distort economic activity."
The plan doesn't specify which "loopholes" would be closed. That would be left to the tax-writing Ways and Means Committee to figure out later.
<Ground Hog's Day all over?>
The Senate plan creates a reserve fund that could be used to help pay for a tax overhaul or to "extend certain expiring tax-relief provisions." But the budget resolution doesn't allocate any money to the fund.
<Call it the Santa Claus Fund or the Tooth Fairy under your pillow fund.>
Some policymakers in Washington say that letting temporary tax cuts expire isn't the same as increasing taxes. But congressional Republicans don't make that argument, especially about tax breaks that have been around for years and even decades.
To drive home the point, when Congress voted in December to extend the temporary tax breaks through the end of the year, the title of the legislation was the "Tax Increase Prevention Act of 2014."
After the November Elections, the December extending of temporary tax breaks was called, the "Tax Increase Prevention Act of 2014" and the Fox said to Little Red Riding Hood, "All the better to eat you with my dear."
DUTY CALLS--VOTE!
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