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-- Spending, not Tax Cuts, to Blame for Sapping Budget Surplus – (From National Taxpayers Union)

As Congressional critics pointed to the recently-passed tax cut for
shrinking federal surplus projections released by the Office of Management and Budget, research from the non-partisan National Taxpayers Union has identified the true culprit -- a relentless onslaught of spending programs aided and abetted by lawmakers themselves.

NTU found that:
o Total federal outlays in 1995 were $1.51 trillion.  In 2001 they are
scheduled to be $1.86 trillion.  That is an increase of 22%.  Average
inflation during that period was 2.5% per year.
o On its way out of town last fall, Congress voted to bust the budget caps by a whopping $52 billion over the previous year's caps and $26 billion over the inflation adjustment.
o The spending spree is scheduled to continue.  Between 2001 and 2006 total federal outlays are scheduled to increase by 20%, from $1.8 trillion to $2.2 trillion.
o If all the bills introduced in both chambers during the last Congress had passed, they would have increased spending by $973 billion a year.  In other words, the Bush tax cut will save taxpayers $511 billion between 2002 and 2006, while the 106th Congress proposed to spend $4.9 trillion over the same period -- thereby reducing the surplus by nearly 10 times that amount.
o Meanwhile, Congress is currently considering an education bill that would sap the surplus by at least $120 billion over the next 5 years, and is poised to take up a prescription drug benefit entitlement that could take a bite of  $632.5 billion over the next 5 years.
o Nondefense discretionary spending was $147 billion in 1986.  If this
spending had been held to the rate of inflation over the past 15 years, its level in 2001 would $228.8 billion instead of $325.7 billion (i.e., the
surplus would be $96.8 billion larger).
o If nondefense discretionary spending growth had been held to 2.5% per year during the Clinton era, the "on-budget" (non-Social Security) surplus would be $51.1 billion larger in 2001.

NTU's entire statement on the budget surplus is online at
http://www.ntu.org/news_room/press_r

eleases/pr_082201.php3


-- Revisiting the Tobacco Settlement --

"Two years ago the states attempted to justify their lawsuit by promising that this money would be used to reimburse taxpayers for societal costs related to tobacco use and to discourage future tobacco use.  Instead, tobacco companies have been exploited as an easy source of revenue by big-spending politicians eager to fund their pet projects.  Funding new college scholarships and grants, flood control projects, teen pregnancy programs, and remodeling schools may be worthwhile state programs but they are all contrary to the advertised intent of the tobacco settlement," noted NTU Associate Policy Analyst Sayeh Daee.  "Unfortunately, the taxpayers will
be left with programs that must be funded long after the tobacco settlement money has been spent."

The press release for NTU Issue Brief 127 is available at
http://www.ntu.org/news_room/press_re

leases/pr_082201b.php3


-- NTU Estimates David Bonior's Congressional Pension --

Even if Congressman David Bonior loses his long-shot bid to become
Michigan¹s next Governor, he can count on one "sure bet" -- a Congressional pension plan that could pay him as much as $96,500 when he steps down in 2003 and $4.0 million total during his lifetime.

"When it comes to Congressional pension payouts, David Bonior looks less like the self-described 'underdog' in the race for Michigan Governor and more like a leader of the pack,² said NTU President John Berthoud.
"Congress's overly generous retirement plan, mostly funded by taxpayers, can help ensure that those who take the leap for higher office won¹t fall too far if they miss their goal."

Read NTU's release at
http://www.ntu.org/news_room/press_re

leases/P0108BoniorPension.php3


-- NTU Also Concerned about Perks for Ex-Presidents --

Former President Clinton's recent ribbon-cutting ceremony for his
new taxpayer-funded office in Harlem, NY has re-ignited the controversy over perks for ex-Chief Executives. Citing statistics provided by National Taxpayers Union, widely-syndicated columnist Cal Thomas asked in article he wrote earlier this month, "Why are the taxpayers subsidizing these multimillionaires?" As Congress prepares to explore the issue later this fall, find out how retired Presidents feather their own nests with tax dollars.

NTU supports efforts to trim post-presidential benefits.
http://www.ntu.org/news_room/press_re

leases/pr_030901.php3

Estimated lifetime pension benefits for living presidents (graph):
http://www.ntu.org/news_room/press_r

eleases/pr_011101_graph.html


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National Taxpayers Union is America's oldest and largest taxpayers' rights
group. NTU has worked for lower taxes, less wasteful spending, and
accountable government at all levels for 31 years. Visit http://www.ntu.org.