Business Trends

State of Union Proposals Cost Taxpayers $70 Billion

In Uncategorized on January 28, 2010 at 7:08 pm

Even as he encouraged reforms like a freeze on a small portion of the federal budget and a robust disclosure process for Congressional earmarks, President Obama still called for at least $70.46 billion in new federal spending burdens on taxpayers, according to a line-by-line analysis of his first State of the Union speech by the non-partisan National Taxpayers Union Foundation (NTUF).

Among the findings of NTUF’s analysis:

•President Obama outlined items whose enactment would increase federal spending by a net of $70.46 billion per year. Since 1999, when NTUF began tracking Presidential addresses, the lowest recorded total was President Bush’s address in 2006, coming in under $1 billion in new spending; the highest was President Clinton’s 1999 speech, which proposed $305 billion in new outlays. Obama’s speech last night amounted to $36 billion less than the $106 billion that George W. Bush offered in his first State of the Union speech in 2002.

•Obama outlined 21 proposals with a fiscal impact last night, eight of which would boost spending, three of which would cut them, and 10 of which had costs or savings that could not be pinpointed. The single largest item Obama mentioned was a call to pass cap-and-trade national energy tax legislation, with an outlay cost of $51.5 billion (not including revenue increases or price hikes in energy bills). Other large initiatives included immigration reform ($9.8 billion) and subsidies for retirement savings among low-income Americans. Major undertakings with unquantifiable costs included a student loan forgiveness program and a new round of mortgage refinancing subsidies.

“This analysis doesn’t include huge potential burdens from big-government health care legislation, a new ‘stimulus’ plan, or greater obligations to bailed out entities like auto companies and banks. While it’s clear we face enormous deficits as far as the eye can see, taxpayers seeking specifics on the President’s future direction of federal expenditures likely won’t find a compass in last night’s speech,” Brady concluded.

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