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Archive for the ‘Spending’ Category

Memo to D.C.: Cut Spending, Don’t Raise Taxes

Friday, April 9th, 2010

Below is the text of a press release the campaign sent out this morning regarding recent talk of imposing a Value Added Tax (VAT), which is a European-style national sales tax.

Earlier this week, White House advisor and former Federal Reserve Chairman Paul Volcker said that the United States should consider implementing a Value Added Tax as a means of combating mounting debt. Today, Republican senatorial candidate and financial advisor Don Bates Jr. responded to the mounting wave of support in Washington for a national Value Added Tax. “The solution to solving our fiscal problem is not implementing a new, back-door tax on the American people.  The answer is to cut federal spending and return government’s focus to a more limited scope of priorities,” Bates said. 

Bates explained how the VAT would harm Indiana saying, “according to the IRS, Indiana taxpayers paid $42.1 billion in federal taxes in 2008. If Democrats and the Obama Administration decide to pay for their unrestrained spending with a 10% VAT, Indiana taxpayers will end up paying roughly $21 billion in additional federal taxes every year.”

“European nations have experimented with value added taxes, and their record gives us an example of what we can expect if such a tax is imposed here,” Bates remarked. “VATs have proven to be a one-way ticket for governments to raise taxes across Europe, and that in turn has led to a stifling of economic productivity.” Bates cited Spain as an example saying “they have had a VAT for a number of years, and today their unemployment rate stands at nearly 20%. That unemployment rate is substantially the result of higher taxes and more regulations, and those two things are inevitable with the onset of a VAT.”

“Washington spends too much, and the answer to the deficit and the daily accumulating mountain of debt is to cut spending, not find yet another way to tax hardworking people. I pledge to voters that I will oppose any attempt to pass a VAT, and I will fight for a reduction in spending and not a new, back-door national sales tax,” Bates concluded.

Earmark Reform a House-Only Deal?

Sunday, March 14th, 2010

In a rare bit of good news out of Washington, House appropriations leaders have made a rule against allowing for-profit companies to directly receive earmarks from spending legislation.  Although the rule doesn’t go as far as it should in banning earmarks for non-profit organizations as well, it is good to see an earmark ban of some sort gaining traction.

What is interesting is that the Senate has refused to join the House in the for-profit earmark ban.  Don has said, repeatedly, that he will not accept earmarks or bring earmarked money back to Indiana if he serves in the Senate.  Hoosiers want someone who will stand up for fiscal discipline and honesty and accountability in federal spending.  That’s something Don is committed to doing.

Washington Must Stop Wasteful Spending

Wednesday, March 10th, 2010

By: Don Bates Jr.

Today, and for the past couple days, the President has been speaking about the need to pass healthcare reform.  Unfortunately, the reform he is talking about amounts to a massive government takeover of our healthcare system.  He and his party have told the American people that the latest attempt to pass reform on Capitol Hill combines, or will combine in the near future, the best that each party in Congress has to offer.  However, a careful look at what is actually being negotiated reveals a very one-sided approach to the problem.  In fact, some of the biggest changes in this new plan are expansions of the very worst proposals contained in past plans.

When the American people had time to dig through the healthcare bill that passed the Senate, they found what has now become known as the “Cornhusker Kickback.”  That provision was a special favor that Sen. Ben Nelson (D) gave his home state of Nebraska.  Understanding the impact of massive new unfunded mandates that the federal government was placing on the states, Sen. Nelson conveniently found a way to channel hundreds of millions of dollars in federal money back to Nebraska to subsidize the new program.  Instead of stripping out such pork barrel spending, the newest healthcare bill actually offers that subsidy to every single state.  When you have a bad idea, the last thing you should do is expand it by 50 times!

But for all the talk of healthcare reform, one fundamental issue is being overlooked by Democrats and the Administration in Washington. As bloated with wasteful spending as this single piece of legislation is, it doesn’t begin to compare to the overall growth of the federal budget under this President and this Congress.  The non-partisan Congressional Budget Office just released estimates that President Obama’s budgets will run an $11.3 trillion deficit over the next 10 years.

As a financial advisor and someone with experience in business and finance, I know when the numbers don’t add up.  An $11.3 trillion deficit over the next 10 years does not add up to jobs created, an economy built, and a future of prosperity for Indiana and for our country.  It is time for Washington to stop the spending.  On Saturday at the Warsaw debate I pledged to abstain from pork-barrel spending if elected, and to fight hard to reign in the size of government.

It’s time for Indiana and for America to get to work, and we won’t create jobs by more than doubling the national debt in a dozen years.  If elected, I will go to Washington and use my knowledge of what it takes to create jobs, balance budgets, and make an organization fiscally sound to rein in spending and protect the future of our country.  Let’s get to work!