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Context of 'April 1, 2009: Republican Admits ‘Budget’ was ‘Marketing Document’'

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House Minority Leader John Boehner (R-OH) produces a Republican alternative to the Obama administration’s $3.6 trillion budget proposal. Calling President Obama’s budget “completely irresponsible,” Boehner holds up a booklet on the floor of the House and says: “Two nights ago the president said, ‘We haven’t seen a budget yet out of Republicans.’ Well, it’s just not true because—Here it is, Mr. President.” Boehner calls the booklet a “blueprint for where we’re going.” However, the booklet contains almost no details and no actual numbers; the Associated Press calls it “a glossy pamphlet short on detail.” Boehner’s House colleague Paul Ryan (R-WI) says more details will be revealed next week. “We’re going to show a leaner budget, a budget with lower taxes, lower spending, and lower borrowing,” Ryan says. “Our plan curbs spending, creates jobs, and cuts taxes, while reducing the deficit,” says Boehner. When asked about specifics, including where the cuts would come from, Boehner tells a reporter, “We’ll wait and see next week.” [CNN, 3/26/2009; Associated Press, 3/27/2009]
Cutting Deficits, Lowering Taxes for Wealthy Americans and Working Class - The proposal does not specify how it would reduce the federal deficit. It does advocate heavy cuts in domestic spending and lowering tax rates: the Republicans propose reducing the 35 percent, 33 percent, and 28 percent tax brackets to 25 percent, which would result in significant tax cuts for wealthier Americans. The proposal would also reduce the tax rate for those making below $100,000 to 10 percent. Liberal analyst Matthew Yglesias notes, “It’s strange that the Republicans railing about long-term deficits seem to love long-term deficits when the point of the deficits is to further enrich the rich.” [Think Progress, 3/26/2009]
No Actual Numbers - Representative Mike Pence (R-IN) says “[i]t’s not likely” that the GOP budget will be adopted. However, Pence says he believes “that a minority in Congress plus the American people equals the majority.” Pence adds, “We intend to take our case for fiscal discipline, growth, and tax relief to the American people from sea to shining sea and if the American people will rise up, anything is possible on Capitol Hill.” White House press secretary Robert Gibbs laughs at the Republicans’ budget proposal, noting that the blueprint contains more pictures of windmills than charts. “It’s interesting to have a budget that doesn’t contain any numbers,” he says. “I think the ‘party of no’ has become the ‘party of no new ideas.‘… The administration is glad that the Republicans heard the president’s call to submit an alternative,” he says. “We just hope that next time it will contain actual numbers so somebody can evaluate what it means.” Obama’s proposal is likely to be modified by more conservative Democrats in the upcoming days. Senate Republicans later say that they do not intend to submit a specific alternate proposal to Obama’s budget, a decision that the Associated Press notes “spares them the need to make politically difficult choices.” [CNN, 3/26/2009; Associated Press, 3/27/2009] Asked about the proposal’s effect on the federal deficit by MSNBC correspondent Norah O’Donnell, Pence is unable to answer the question. O’Donnell asks: “So you don’t have the numbers now? About what your plan would be in terms of how it would cut the deficit or add to the deficit? You don’t have any numbers on that?” Pence attempts to duck the question: “Well, it’s really a broad—when the White House a few minutes ago was attacking the numbers in this bill, the tax cut numbers. There’s plenty of numbers in the Republican recovery plan. And we just really believe the president’s plan to raise taxes by nearly 2 trillion dollars on almost every American… deserves a debate on Capitol Hill.” O’Donnell responds, “[H]ow is your plan credible?” Pence replies: “Well, I thought through this morning, we didn’t have a plan, so it may be progress our plan is being attacked.… This is the broad outline.” [Think Progress, 3/26/2009]
'Marketing Document' - Five days later, Ryan will admit that the “budget proposal” being offered by Boehner is nothing more than a “marketing document” (see April 1, 2009).

Entity Tags: Paul Ryan, Mike Pence, Matthew Yglesias, Norah O’Donnell, John Boehner, Obama administration, Robert Gibbs

Timeline Tags: Global Economic Crises

Republican Representative Paul Ryan (R-WI) admits that the “budget proposal” offered the previous week by the GOP in response to President Obama’s own budget proposal (see March 26, 2009) was never anything more than a “marketing document.” On MSNBC’s “Morning Joe,” Ryan says, “The thing you saw last week was not the alternative budget, this is our alternative budget.” Ryan is referring to a budget the GOP intends to release later today. The “budget” touted on the floor of the House by Minority Leader John Boehner (R-OH) was a “marketing document,” Ryan says. “Somewhere along the line there was a misimpression given that that was our budget.” In the Wall Street Journal, Ryan says the GOP budget will include the following:
bullet A five-year non-defense spending freeze;
bullet Cutting the deficit 50 percent more than Obama’s proposal by 2019;
bullet More oil exploration and fewer regulations on pollution;
bullet A revamping of Medicare for those currently below age 55;
bullet Making permanent the Bush administration’s tax cuts for wealthy Americans, and a simplified tax code that taxpayers could choose to use.
Of President Obama’s budget, Ryan says, “If this agenda comes to pass, it will mark this period in history as the moment America turned European.” [The Hill, 4/1/2009] The Center for American Progress, a progressive think tank, says that a spending freeze as advocated by the GOP budget would be calamitous for the American economy. The freeze would negate the entirety of the Obama administration’s multi-billion stimulus package, and would rely entirely on economic recovery generated by supply-side tax cuts. MSNBC’s Chris Matthews compares the idea to the economic ideas that led to the Great Depression: “[I]t sounds very much like [former President Herbert] Hoover. This is a doctrine which was tried in 1932 and failed. In a period of international deflation, the worst thing you can do is join in the deflation by cutting spending.” [Think Progress, 4/1/2009]

Entity Tags: Paul Ryan, Chris Matthews, Center for American Progress, Barack Obama, John Boehner

Timeline Tags: Global Economic Crises

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