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Facts About the Ryan-Murray Budget Agreement

December 31st, 2013 No comments
Senate Budget Committee Chairwoman Patty Murray (D-Wash.), and House Budget Committee chairman, Paul Ryan (R-Wis) hammer out bipartisan two-year budget deal (Photo Source Credit: Fox News).

Senate Budget Committee Chairwoman Patty Murray (D-Wash.), and House Budget Committee chairman, Paul Ryan (R-Wis) hammer out bipartisan two-year budget deal (Photo Source Credit: Fox News).

Facts About the Ryan-Murray Budget Agreement

original article written by Net Advisor

WASHINGTON DC. There has been a lot of untrue propaganda out there for example blaming Republicans for cutting unemployment benefits that have now expired to 1.3 million people in the USA. Apparently someone needs to explain what happened with the latest budget, and in case someone wants to finger point, we show you who – correctly.

Who Wrote the 2-year Budget Deal?
[1] FACT: The (2014-2015) budget was a bipartisan agreement. The budget was co-authored by House Rep. Paul Ryan (R-Wis.) and Senator Patty Murray (D-Wash.). Each head their respective budget committees (Source: CNN: HTML PDF).

Who Voted for the Budget Deal?
[2] FACT: The U.S. Senate voted 64-36 in favor of the deal. The U.S. House voted 332-94 in favor of the deal. President Obama signed the budget deal without question or further debate (Source: CNN: HTML PDF). Nine Republicans supported the Senate Bill, while 36 Republicans voted against it (Source: The Blaze: HTML PDF).

How Come Unemployment Benefits Weren’t Included in the Budget?
[3] FACT: Unemployment Benefits Have Ran 6 Months (26 weeks) to 1.9 Years (99 weeks)
The budget deal did not include another extension of unemployment benefits to 1.3 million unemployed persons. Democrats and Republicans actually agreed that they could not afford to spend $25 Billion a year to pay people for not working beyond 26 to 99 weeks.

“At the depth of the recession, laid off workers could qualify for up to 99 weeks of benefits, including the initial 26 weeks provided by states. The most recent extension allowed a total of up to 73 weeks, depending on the state.”

— Source: Huffington Post, Dec. 27, 2013 (HTML PDF)

[4] FACT: Unemployment Benefits Costs One-Quarter Trillion Dollars Since 2008
One writer in the Washington Post suggested to just borrow the money to extend unemployment benefits. We’ll, we actually have been doing this already. Since 2008, the taxpayers have spent $225 Billion (one-quarter-of-a-trillion-dollars) on unemployment benefits.

“The Obama administration says those payments have kept 11.4 million people out of poverty and benefited almost 17 million children. The cost of them since 2008 has totaled $225 billion.”

— Source: New York Daily News ( HTML PDF)

The U.S. taxpayers just can’t pay people to not work forever. After 6 months to 1.9 years, someone has got to say that’s about it. If they are still out of work, they probably can qualify for food stamps.

President Obama during 2013 Senator Harry Reid government shutdown (Photo Credit: AP).

President Obama during 2013 Senator Harry Reid government shutdown (Photo Credit: AP).

[5] FACT: Hypocrisy. Don’t worry Mr. President; there is plenty of blame to go around.
President Obama blames Republicans for a Democrat co-sponsored budget agreement, which Obama approved and signed into law. The President now says by not extending unemployment benefits, it would hurt the U.S. economy (Source: UPI: HTML PDF).

That’s interesting; sounds a lot like what was argued just three years ago.

“If Congress lets unemployment benefits expire this week for the long-term unemployed…the overall economy would suffer, too.”

— Source: AP/ Washington Post, Nov. 30, 2010 (PDF) (full report)

Did the economy really suffer since 2010? That depends on your view point. If you are a liberal, the economy is booming like its 1999. If you are a Wall Street investor, the stock market is booming like its 2005.

What happened after 1999 and 2005? Anyone remember? Hint: Dot-com bust (2000-2002); real estate bust (2006-2009ish). This is not to say the stock market, real estate or the economy is going to bust in 2014, but if we stay on this current economic path of higher taxes, expanded government control (healthcare), and deficit spending, the economy will eventually bust making the Great Depression look like a ride at Disneyland.

In the mean time, Senator Jack Reed (D-RI) and Dean Heller (R-Nev.) introduced a bill after the 2014-15 budget agreement for a three-month extension of unemployment benefits (Source: AP/ CNBC).

[6] FACT: The Budget Agreement Reduces the Bi-partisan Sequester Cuts by About 74%
The Budget Agreement reduced the previous “mandatory” Bi-Partisan Sequester Budget Cuts by about 74 percent.

“(budget deal) would restore about $63 billion in funding that had been cut by the so-called sequester.”

— Source: Fox News (HTML PDF)

The previous Sequester budget agreement was to cut $85 Billion a year from the budget for the next ten years. We’ll that deal proposed by President Obama’s team in 2011, went into effect in 2013,  didn’t even last 10 months. With this new Ryan-Murray budget agreement, it reduced the Sequester from $85 Billion in cuts to about $22 Billion in cuts. That works out to remove about 74 percent of the planned Sequester budget cuts.

In case anyone is paying attention, this is pretty much the same thing that Congress and the President did in the last 2011 budget agreement. Government starts off with huge potential budget cuts; but in the end, they are trivial, and doesn’t solve the fundamental problems of what is causing deficits: entitlements (Sources: Heritage.org and U.S. News & World Report) .

Reports on the 2011 “Budget Cuts” (Before the Sequester):

Ryan-Murray 2-year "budget" deal. Political cartoon by Steve Breen-Creators Syndicate.

Ryan-Murray 2-year “budget” deal. Political cartoon by Steve Breen-Creators Syndicate.

[7] FACT: U.S. Credit Rating Downgraded in 2011. Nothing has Changed.
On August 5, 2011, Standard and Poor’s (S&P) Credit Rating Agency downgraded the U.S. Credit Rating for the first time in U.S. history. In short, S&P cited concern that the growth in government spending, lack of entitlement reform, both not being offset by revenues is less than what is necessary to stabilize the government’s debt over the next ten years.

We lowered our long-term rating on the U.S. because we believe that the
prolonged controversy over raising the statutory debt ceiling and the related
fiscal policy debate indicate that further near-term progress containing the
growth in public spending, especially on entitlements, or on reaching an
agreement on raising revenues is less likely than we previously assumed and
will remain a contentious and fitful process. We also believe that the fiscal
consolidation plan that Congress and the Administration agreed to this week
falls short of the amount that we believe is necessary to stabilize the
general government debt burden by the middle of the decade.”

— Source: Standard & Poor’s, Aug 5, 2011, page 3, parr 1. (S&P Report: PDF. Our: Report) (bold emphases added).

The Obama Administration via the DOJ later sued S&P, where S&P claims the lawsuit is in retaliation of the credit downgrade.

[8] FACT: U.S. Debt up $2.6 Trillion+ since S&P Downgraded U.S. Credit Rating
Since the August 5, 2011 S&P downgrade of American’s credit rating, total U.S. government debt has increased a whopping $2.6 Trillion!

U.S. Debt: Aug. 5, 2011: $14,584,500,839,325.86 ($14.585 Trillion – rounded)

U.S. Debt: Dec. 30, 2013: $17,226,267,273,544.34 ($17.226 Trillion – rounded)

Amount of New Debt AFTER U.S. Credit Downgrade: $2,641,766,434,218.48 ($2.642 Trillion – rounded)

— Source: U.S. Treasury (HTML PDF)

Note, no one has downgraded U.S. debt since the DOJ filed a lawsuit (PDF) against one of the credit rating agencies.

Many of today's senior politicians will be out of office when these kids inherit the world's largest debt.

Many of today’s senior politicians will be out of office when these kids inherit the world’s largest debt.

[9] FACT: The Budget Agreement Doesn’t Reduce the Deficit At All
It seems that the majority of Republican and Democrats in government have this crazy notion that the U.S. deficit will somehow be reduced over the next ten years. All of their estimates are based on future projections. Anyone who has spent time studying government spending knows this rhetoric is just garbage.

The current Ryan-Murray 2-year “Budget” Agreement is expected to add $1.962 Trillion to the deficit over the next TWO YEARS!

“The BCA (Budget Control Act of 2011) capped overall discretionary spending in fiscal years 2014 and 2015 to $967 billion and $995 billion, respectively…for the next two years.”

— Source: Town Hall (HTML PDF)

Government just reversed nearly 3/4ths of the sequester spending cuts. Why would anyone think government will cut spending over the next ten years when they can’t keep their agreed upon cuts for ten months? Half of the new spending “cuts” don’t even take place until about 10 years from now.

“The deal pays for the spending hike through increased user fees and spending cuts, half of which occur a decade from now.”

— Source: Breitbart (HTML PDF)

This tells us it’s all hogwash. Obama and the majority in Congress have no credibility on entitlement reform, balanced budgets, or true debt reduction plans. Here are two examples of why the U.S. debt isn’t going down anytime soon.

More Debt
Over the next ten years, the Fiscal Cliff Deal is expected to add $4 Trillion to the deficit alone says the non-partisan Congressional Budget Office (CBO).

Even More Debt
Next, Obamacare is expected to add (at-least) $2.6 Trillion to the deficit over the next 10 years, and $6.2 Trillion over the next 75 years.

Based on my review of how government projects things, I would argue these numbers will go 50-300% higher. How do I calculate that? In 2009, President Obama said the Affordable Care Act (“Obamacare”) would cost $900 Billion over its first 10 years. By 2013, that estimate has nearly tripled to currently $2.6 Trillion. Here is the funny part: Obamacare has not even been fully implemented yet.

These are just two things that add about $6.6 Trillion to the deficit over the next 10 years. Now add the $1.9 Trillion Ryan-Murray debt over the next two years, and we are looking at no less than $8.5 Trillion of new debt over the next 10 years. This assumes that government will not spend one cent more than it takes in from 2016-2024 – don’t hold your breath.

Finally, we’ll leave out the discussion of all the pork and entitlements in the 2014-15 Budget Agreement; and the new tax increases, especially on airline travelers. The budget deal hurts people who put their lives on the line to defend America.

U.S. Veterans. (Photo owner not known or public domain. Please advise for credit.)

U.S. Veterans. (Photo owner not known or public domain. Please advise for credit.)

[10] FACT: The Budget Agreement Cuts Benefits to U.S. Troops and Veterans
The Ryan-Murray “Budget” deal took a financial axe to U.S. troops and veterans. This hurts even disabled veterans who were injured during combat. Cutting people off after 26 to 99 weeks from losing their jobs is one thing, but to send U.S. troops in harm’s way and in often political wars (General Africa, Egypt, Libya, Syria) then cut American soldier’s income promised, cut their healthcare promised, cut their retirement promised is just shameful. This is the thanks they get for risking their lives for America?

Who is to blame?
EVERYONE who voted “yea” for the Ryan-Murray Budget Agreement, including President Obama, who signed the bill into law.

AFTER the backlash, Patty Murray (D-Wash.) said this was a “mistake” and vowed to fix troop/vet benefits. We’ll she can’t fix it herself. She co-authored the bill with Paul Ryan (R-Wis.). It will take a joint congressional amendment and a presidential signature to fix this “mistake.” Not surprising, Majority Whip Senator Harry “shutdown” Reid (D-Nev.) has been blocking amendments to fix the legislation.

Where could congress get money for our troops and vets without borrowing it? From the illegals.

[11] FACT: Non-U.S. Citizens Receiving est. $7 Billion Year Refundable Child Tax Credit
Dear U.S. Military, your government apparently does not view you as a high priority compared to illegal aliens. To get funding back for U.S. troops and veterans, Rep. Michael Fitzpatrick (R-Penn.) said he has a bill that would close the loopholes to block illegal aliens from receiving an estimated $7 Billion a year in refundable child tax credits.

“The bill backed by Roby, Rep. Michael Fitzpatrick, R-Pa., and others would replace the COLA cut with an estimated $7 billion in savings they said could be achieved by closing a tax loophole that allowed non-citizens to receive cash payments from the Refundable Child Tax Credit.”

— Source: Military.com (HTML PDF)

It’s not like the U.S. gov doesn’t have the money. It’s just that it has priorities that don’t seem to include our troops and veterans.

[12] FACT: Non-U.S. Citizens Receiving All Kinds of Benefits.
U.S. Troops? Receive Cut in Pay and Benefits.

An unknown number of illegal aliens are getting:

U.S. troops including disabled veterans get their pay and benefits cut. Most U.S. citizens don’t even get care this good. Think we’re starting to understand whose interest is being represented here.

Houston, we DO have a BIG problem.

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Categories: Deficit