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Leading up to tomorrow night's State of the Union address, the White House has made at least one thing abundantly clear: the President has both a pen and a phone at his disposal.
While those instruments will probably get plenty of use during the speechwriting process, the Administration has been using the line to emphasize that if Congress doesn't act on certain agenda items, the President will -- either through executive orders or other unilateral actions.
The price tag accompanying the President's proposals will depend on how specific he'll be in describing his goals for this so-called "year of action." You can follow along with NTU and NTUF staff tomorrow night for real-time analysis during the speech, as well as in the days after as we break down the President's agenda and what it means for taxpayers.
Be sure to let us know ahead of time what you think the agenda will cost!0 Comments | Post a Comment | Sign up for NTU Action Alerts
Today the Center for International Policy’s Director of Arms and Security Project, William Hartung (a colleague of NTU’s), released a critical report disputing the number of jobs generated by the costly F-35 joint strike fighter program. The report also raises questions concerning the use of foreign contractors and Lockheed campaign contributions.
Fittingly entitled, “Promising the Sky: Pork Barrel Politics and the F-35 Combat Aircraft,” some of the significant findings of the report include:
According to the most recent Selective Acquisitions Report, the total cost for the F-35 program, including both the aircraft and engine subprograms, is $391.2 billion. Other, more inclusive estimates put that total much higher. Despite the program’s numerous setbacks, delays, cost increases, and engineering problems, lawmakers have nonetheless given the F-35 one pass after another. One of the major reasons for the lack of serious scrutiny the F-35 has received has been the repeated claims by military Keynesians that the program is an important “job creator of the highest order, a program that has a home in almost every state.”
This new report reinforces critics’ (NTU among them) arguments that funding for the F-35 shouldn’t be on autopilot. Further, the report underscores the need to apply new scrutiny to not only the F-35, but other major weapons systems as well. NTU has long held that the F-35 program has not adequately justified its huge appetite for taxpayer dollars. We have discussed options such as scrapping the B and C variants in joint reports with the R Street Institute as well as U.S. PIRG. Given the disparate values and goals of our partner institutions, the fact that both reports would put the F-35 under the spotlight is a clear indicator that it’s time to take a hard look at the program now..
Getting to the truth about the job-creator myth that has grown up around the F-35 is an important part of reexamining and rethinking how taxpayer funds are spent at the Pentagon. Now, as Mr. Hartung concludes his report, “…Congress and the executive branch can feel free to debate the future of the F-35 on its strategic merits, not pork barrel politics.”1 Comments | Post a Comment | Sign up for NTU Action Alerts
Will the President's Speech Price Taxpayers Out of Prosperity?
Join NTU online to win prizes and chat with your fellow taxpayers during the President’s State of the Union Address – and play our 2014 “Price the Proposals” game to test your budget brain power and win prizes!
In just one week, President Barack Obama will deliver his 2014 State of the Union (SOTU) Address to Congress and the nation. What policies will he propose? How much will his agenda add or cut from the budget? National Taxpayers Union wants to know what you think!
Before the end of the SOTU speech on January 28th, go to www.ntu.org/sotu2014 and make your guess about how much the Address might cost or save taxpayers. The closest guesses to our researchers’ analysis of the speech (without going over) could win:
Then, join us online during the speech!:
Our policy experts and grassroots advocates will give you up-to-the-second commentary and the real facts behind the President’s plans.
So, come on down and “Price the Proposals” during President Obama’s State of the Union “showcase” next Tuesday!0 Comments | Post a Comment | Sign up for NTU Action Alerts
Taxpayer’s Tab Supplemental: NOAA Funding and H.R. 2413
In the latest edition of The Taxpayer’s Tab, NTU Foundation highlighted H.R. 2413 as the week’s Wildcard bill, which is the section where we highlight proposals we find particularly interesting but that do not fall into any of the other three bill highlight sections. The Weather Forecasting Improvement Act would dedicate new resources to the National Oceanic and Atmospheric Administration (NOAA) to research and predict “high impact weather events,” occurring both nationally and globally. More specifically, NOAA would receive funding to purchase new equipment and conduct research that improves its forecasting abilities ahead of extreme weather phenomena like Superstorm Sandy or last year’s Midwest tornadoes.
The text of the bill as introduced set an authorization of appropriations of $120 million for the years FY 2014-2017. The Congressional Budget Office (CBO) analyzed the bill to determine the outlays, i.e., the actual amount of federal spending that would occur as a result of the authorizations. CBO reported that the programs covered by the bill received funding of $80 million in FY 2013 but it was not sure of actual outlays for FY 2014. Beginning in FY 2015 spending would begin to increase from $89 million reaching $119 million in FY 2017. CBO also determined that additional funding ($42 million through FY 2017) would be required for research and planning. Based on this data, NTUF estimated that the bill would increase spending by a net of $115 million over four years.
That is what we wrote in the Tab, which went out to our subscribers last Thursday. Since the release, NTUF analysts have been contacted by staffers on the House Committee on Science, Space, and Technology to help clarify their position and intentions regarding H.R. 2413. The Committee staffers told us that they disagreed with the conclusion of the CBO report:
The Weather Forecasting Improvement Act does not increase the overall authorization for the National Oceanic and Atmospheric Administration. Instead, it prioritizes weather forecasting research from funds made available for research at NOAA. At present, NOAA spends more than twice as much on climate change research as it does on weather forecasting research. The bill, as amended and passed by the Committee in December, does not affect direct spending or revenues, contains no unfunded mandates, and does not does not increase the overall authorization for NOAA, NOAA’s Office of Oceanic and Atmospheric Research, or the Operations, Research, and Facilities account at [the Office of Oceanic and Atmospheric Research (OAR)].
In short, Committee staff say that H.R. 2413 transfers funds from NOAA climate change research to weather prediction research. However, there are a few things to consider in reading our article, reading the Committee’s response, and looking at the CBO cost estimate:
What this means for H.R. 2413: The Committee amended the bill and ordered it to be reported, which means staffers will prepare a written report about the bill including its intentions, section-by-section analysis, and cost information. After that, it would need to be placed on the House’s legislative calendar for floor consideration. In the event the language has been clarified as the Science Committee staff says, the bill would result in a transfer of existing funds and would not increase federal spending.
What this means for taxpayers: For Americans concerned with the accuracy of federally-funded meteorology, especially with regards to large destructive weather events like hurricanes and tornadoes, NOAA will have more resources to improve their predictions and models. This assumes that the redirected-funding for weather research yields better results.
What this means for NTUF’s article and BillTally score: Because the transfer changes were made in the amended version of H.R. 2413 and not the introduced version, we will still record the financial impact of the bill as we reported it in The Taxpayer’s Tab: $29 million ($115 million over four years). This score will be reflected in the agendas of H.R. 2413's sponsor and cosponsors when we release our First Session BillTally report in the coming months. It will likely have a marginal impact on an individual’s proposed spending agenda, but that will also depend on the Member’s other proposals.
Something to remember: NTU Foundation is a 501(c)3 organization and so does not take a stance on any legislation, candidates, or the fitness of currently serving officials to serve. BillTally and The Taxpayer’s Tab is intended to educate Americans on the proposals and spending that can affect the federal budget and their own pocketbooks. We are happy not only to write about the many measures being considered in Congress, but also to clarify our work as a bill evolves and makes its way through Congress.
Not a Taxpayer’s Tab subscriber? Get the most up-to-date research from the BillTally project and the spending trends of Congress now!0 Comments | Post a Comment | Sign up for NTU Action Alerts
Predict Cost of State of the Union Address, Win $50 Visa Gift Card!
Do the President’s words have weight or is talk cheap?
Join NTU online to win prizes and chat with your fellow taxpayers during the President’s State of the Union Address – and play our 2014 “Price the Proposals” game to test your budget brain power and win prizes!
On January 28th, President Barack Obama will deliver his 2014 State of the Union (SOTU) Address to Congress and the nation. In this speech, the President will have the opportunity to lay out his policy priorities for the next year. Will he present an agenda to get the deficit under control? Or, will taxpayers see the same old plans for more spending and higher taxes?
Americans could be in store for billions of savings or trillions in new obligations, either of which will affect the country for years to come. But what sort of dollar figure are we talking about? If you can correctly answer that question, you could win a $50 Visa gift card!
Back by popular demand, NTU’s “Price the Proposals” contest is taking the pulse of the nation. All you have to do is guess how much you think the President’s SOTU Address will change the federal budget (without going over) and the $50 could be yours! (Don’t worry, we have prizes for runners up, too.)
Then on the night of the speech, January 28th, join us across the web for up-to-the-minute commentary on the State of the Union Address and its fiscal impact. We’ll see you on Twitter, Facebook, and in our special SOTU chat room (on the Government Bytes blog)!0 Comments | Post a Comment | Sign up for NTU Action Alerts
Latest Taxpayer's Tab: Congress Already Reworking Budget Deal
Less than one month after its passage, Congress is already revisiting some of the key agreements it reached in the Ryan-Murray budget deal. In this week's Taxpayer's Tab, NTUF compiled all of the bills that would make changes to two major benefits programs: emergency unemployment insurance, and pay for military retirees.
During the December budget negotiations, Congress failed to reach an agreement on how (or whether) to extend emergency unemployment insurance benefits, which were offered to provide relief for long-term unemployed Americans who had exhausted other forms of payments. One of the obstacles lawmakers continue to face is how those benefits would be paid for if they were to continue. A number of proposals have called for a short term extension without any offsets to the cost; others, including an amendment offered by Senator Harry Reid (D-NV), would extend the program for a longer term in exchange for offsets spread out over the next ten (or more) years. A 3-month extension is estimated to cost about $6.56 billion, according to the Congressional Budget Office.
Another point of contention arose regarding retirement benefit calculations for military veterans under the age of 62. Currently, those personnel are offered benefits at a reduced rate. Congress is now debating whether those reductions should exist at all, or whether certain servicemembers -- namely, those retired due to disability -- should be exempt.
For a detailed list of the bills NTUF compiled, check out the latest Tab online here.0 Comments | Post a Comment | Sign up for NTU Action Alerts
Does House Oversight Hearing on Wasteful Spending Mean Hope for Taxpayers?
NTU Vice President Brandon Arnold offered testimony to the House Committee on Oversight & Government Reform today, making recommendations for saving taxpayer dollars and improving efficiency in government – including submitting NTU and U.S. PIRG’s bipartisan savings report, “Toward Common Ground.”
The bipartisan tone may offer some encouragement for taxpayers, who just endured a budget deal that scrapped spending caps over the next two years. All the panelists, and the Representatives who asked questions, offered pro-active proposals for dealing with wasteful federal spending. Perhaps it's just the renewing effect of a new year, but the enthusiasm and energy being focused on finally addressing the most indefensible expenditures of taxpayer money was encouraging.
Arnold echoed a theme heard throughout the hearing saying, “Just one of these 65 recommendations has been enacted into law… there remains much work to be done.”
That attitude that the lack of progress in dealing with government waste was unacceptable was universal.Reps. Carolyn Maloney (D-NY) and Elijah Cummings (D-MD) asked both panels how progress can be made toward getting something done on this front.
Beginning with “low-hanging fruit,” and working to get legislation to the floor, were popular responses echoed by many as they acknowledged the challenges ahead, and failures of recent Congress’ to keep wasteful spending contained.
Committee Chairman Darrell Issa pledged to his Senate counterparts to put any legislation addressing reforms they agreed upon in the Senate Oversight Committee to a vote in the House Oversight Committee.
Arnold concluded, “Although cutting waste can limit some red ink, such efforts alone cannot solve our serious long-term debt and deficit problems. However, they can demonstrate to Americans Congress’s desire to act as a good steward of their hard-earned tax dollars.”
Whether the positive, cohesive, tone will translate into more than one of those NTU and U.S. PIRG proposals being passed by this time next year, time will tell.2 Comments | Post a Comment | Sign up for NTU Action Alerts
As the year comes to a close, undoubtedly we begin to reflect on the ups and downs of the previous year. But lawmakers in Congress may be looking back a little further than that after reading the Congressional Budget Office's (CBO) latest report on the federal debt and deficit.
Last week, the non-partisan budget agency released an update to its November report, "Choices for Deficit Reduction." The report offers some sober analysis of the country's mounting debts and deficits, which are at historically high levels. The graphic below puts things into some perspective:
As CBO shows, not only are total outlays higher than they've been over the previous three decades, they are on pace to grow even more, and the revenues they're funded by are coming in relatively slowly. That particular trend illustrates the fact that for all the talk of a recovery, the U.S. economy still has a long way to go before things return to pre-recession levels of prosperity. As CBO explains:
"Making the task of deficit reduction more complicated is the economy's slow recovery from the severe recession. By CBO's estimate, the economy is now about 5 million jobs short of where it would be if the unemployment rate was down to its sustainable level and participation in the labor force was back up to its trend. The shortage of jobs has occurred mostly because demand for goods and services has been weak relative to the productive capacity of the economy."
But historical trends mean very little if we can't draw some conclusion for policy and outcomes going forward. CBO paints a rather harsh picture of where the current path of spending and borrowing at such high levels may lead:
"Because federal debt is already unusually high relative to GDP, further increases in that debt could be especially harmful. ... Higher debt would lead to larger interest payments; making those payments would eventually require some combination of lower noninterest spending and higher taxes. In addition, increases in debt tend to reduce national saving, leading to more borrowing from abroad and less domestic investment, which in turn reduces people's future income relative to what it would otherwise be. Also, when debt rises, lawmakers are less able to use tax and spending policies to respond to unexpected challenges, such as economic downturns or international crises. Rising debt could itself precipitate a fiscal crisis by undermining investors' confidence in the government's ability to manage the budget."
At the end of the day, deficit reduction matters a great deal, and is ultimately a matter of either reducing spending, increasing taxes significantly, or both. Lawmakers will have to make a decision about which direction to pursue when they return to Washington for 2014.0 Comments | Post a Comment | Sign up for NTU Action Alerts
The Senate is expected to pass the Murray-Ryan budget compromise bill as soon as today. As we noted, the bill increases federal spending by $65 billion (75 percent of which will occur in the first two years) by raising budget caps that were agreed to just a few years ago. It also includes offsets of $78 billion over the next 10 years -- three quarters of which occur six to ten years from now. Moreover, nearly half of the savings in the bill are achieved by increasing user fees in a way comparable to a tax increase.
The major flaw of this proposal is that it increases spending now and promises to pay for it years later. By approving this bill, Congress is weakening recently-passed, self-imposed budget limits … so why should taxpayers expect that Congress they will abide to the reductions in this compromise over the long term? Some Members, including Congressman and House Budget Chair Paul Ryan (R-WI), have already signaled that legislators will likely revisit the Cost-of-Living Adjustments, or COLA, slowdown for certain military retirees that was included in the compromise (savings of $1 billion over five years and $6 billion over ten). It is conceivable that similar carve outs will occur as elected officials give in to pressure for more spending.
While it is disappointing that Congress is not choosing to replace the automatic across-the-board sequester caps with an equal amount of upfront targeted spending cuts, unfortunately, it is not surprising. Historical data from BillTally, NTU Foundation's legislative tracking program, shows that Congress produces far more proposals to increase spending than ways to trim the budget. The same trend is observed in this Congress. As of December 17, we have identified 84 savings bills and 424 spending bills in the House and 40 savings bills and 254 spending bills in the Senate.
A complete list of all the spending reductions is available as an Excel spreadsheet for download, or can be browsed online. The list also includes some savings ideas that were included as partial offsets in bills that would, on net, increase spending.
NTUF observed that during the 112th Congress, half of all the cut bills were authored during the first six months and 75 percent by the end of the first year, becoming more scarce during the second year. We are still in the process of reviewing and scoring legislation for the current Congress, but so far, the bulk of the savings we identified were introduced during the first six months of the year.
There is certainly no shortage of places Congress could look for more spending reductions in the $3.5 trillion budget. Lots of reference sources are available: from Senator Coburn's (R-OK) Wastebook, to NTU & US PIRG's list of cuts, and the Congressional Budget Office's most recent Budget Options reports on discretionary, defense and mandatory reductions, to name just a few.
As federal spending, debt, and overreach are set to figure more prominently in policy debates and campaigns during this upcoming election year, will taxpayers see their Representatives and Senators drafting more cut proposals in 2014? Stay tuned to find out because NTUF will continue to keep a close watch on Congress throughout the New Year!0 Comments | Post a Comment | Sign up for NTU Action Alerts
This morning the Senate voted on cloture to move forward the sequester-busting budget deal the House passed last week. The deal is proof-positive that Congress can’t keep spending in line with modest budget caps, even when those caps are The. Law.
Before Senators vote on final passage tomorrow, they should consider Senator Coburn’s (R-OK) “Wastebook 2013,” released just a few hours ago. This year’s Wastebook highlights nearly $30 billion in “questionable and lower-priority spending.” Sen. Coburn goes on to note that this is just “a small fraction of the more than $200 billion we throw away every year through fraud, waste, duplication and mismanagement.”
Some of the outrageous highlights of this year’s Wastebook include:
Go here to read the whole list.
Only a few months ago, House Minority Leader Nancy Pelosi (D-CA) proclaimed, “The cupboard is bare. There’s no more cuts to make.” However, as Senator Coburn’s annual Wastebook so ably demonstrates, the cupboard is far from bare.
Congress shouldn’t be resorting to accounting gimmicks and promised cuts in the future to pay for more spending now. We often say that Congress needs to make tough decisions on spending, and they do, but as the Wastebook and NTU’s own report with our friends at U.S. PIRG prove – there are still a lot of easy decisions Congress is leaving on the table.
Senator Coburn goes on to point out, “There is more than enough stupidity and incompetence in government to allow us to live well below the budget caps. What’s lacking is the common sense and courage in Washington to make those choices – and passage of fiscally-responsible spending bills – possible.”
Click here to call your Senator now and urge them to keep the caps and oppose the budget deal.0 Comments | Post a Comment | Sign up for NTU Action Alerts