CATO Institute lambastes President Bush

The Bush administration's newly released budget projections reveal an anticipated budget deficit of $450 billion for the current fiscal year, up another $151 billion since February. Supporters and critics of the administration are tripping over themselves to blame the deficit on tax cuts, the war, and a slow economy. But the fact is we have mounting deficits because George W. Bush is the most gratuitous big spender to occupy the White House since Jimmy Carter. One could say that he has become the "Mother of All Big Spenders."

The new estimates show that, under Bush, total outlays will have risen $408 billion in just three years to $2.272 trillion: an enormous increase in federal spending of 22 percent. Administration officials privately admit that spending is too high. Yet they argue that deficits are appropriate in times of war and recession. So, is it true that the war on terrorism has resulted in an increase in defense spending? Yes. And, is it also true that a slow economy has meant a decreased stream of tax revenues to pay for government? Yes again.

But the real truth is that national defense is far from being responsible for all of the spending increases. According to the new numbers, defense spending will have risen by about 34 percent since Bush came into office. But, at the same time, non-defense discretionary spending will have skyrocketed by almost 28 percent. Government agencies that Republicans were calling to be abolished less than 10 years ago, such as education and labor, have enjoyed jaw-dropping spending increases under Bush of 70 percent and 65 percent respectively.

Now, most rational people would cut back on their spending if they knew their income was going to be reduced in the near future. Any smart company would look to cut costs should the business climate take a turn for the worse. But the administration has been free spending into the face of a recessionary economy from day one without making any serious attempt to reduce costs.

The White House spinmeisters insist that we keep the size of the deficit "in perspective." Sure it's appropriate that the budget deficit should be measured against the relative size of the economy. Today, the projected budget deficit represents 4.2 percent of the nation's GDP. Thus the folks in the Bush administration pat themselves on the back while they remind us that in the 1980s the economy handled deficits of 6 percent. So what? Apparently this administration seems to think that achieving low standards instead of the lowest is supposed to be comforting.

That the nation's budgetary situation continues to deteriorate is because the administration's fiscal policy has been decidedly more about politics than policy. Even the tax cuts, which happened to be good policy, were still political in nature considering their appeal to the Republican's conservative base. At the same time, the politicos running the Bush reelection machine have consistently tried to placate or silence the liberals and special interests by throwing money at their every whim and desire. In mathematical terms, the administration calculates that satiated conservatives plus silenced liberals equals reelection.

How else can one explain the administration publishing a glossy report criticizing farm programs and then proceeding to sign a farm bill that expands those same programs? How else can one explain the administration acknowledging that entitlements are going to bankrupt the nation if left unreformed yet pushing the largest historical expansion in Medicare one year before the election? Such blatant political maneuvering can only be described as Clintonian.

But perhaps we are being unfair to former President Clinton. After all, in inflation-adjusted terms, Clinton had overseen a total spending increase of only 3.5 percent at the same point in his administration. More importantly, after his first three years in office, non-defense discretionary spending actually went down by 0.7 percent. This is contrasted by Bush's three-year total spending increase of 15.6 percent and a 20.8 percent explosion in non-defense discretionary spending.

Sadly, the Bush administration has consistently sacrificed sound policy to the god of political expediency. From farm subsidies to Medicare expansion, purchasing reelection votes has consistently trumped principle. In fact, what we have now is a president who spends like Carter and panders like Clinton. Our only hope is that the exploding deficit will finally cause the administration to get serious about controlling spending.

My solution is simple and assumed: the Republican Party needs to become Republican all over again.

Republican Contract With America

As Republican Members of the House of Representatives and as citizens seeking to join that body we propose not just to change its policies, but even more important, to restore the bonds of trust between the people and their elected representatives.

That is why, in this era of official evasion and posturing, we offer instead a detailed agenda for national renewal, a written commitment with no fine print.

This year's election offers the chance, after four decades of one-party control, to bring to the House a new majority that will transform the way Congress works. That historic change would be the end of government that is too big, too intrusive, and too easy with the public's money. It can be the beginning of a Congress that respects the values and shares the faith of the American family.

Like Lincoln, our first Republican president, we intend to act "with firmness in the right, as God gives us to see the right." To restore accountability to Congress. To end its cycle of scandal and disgrace. To make us all proud again of the way free people govern themselves.

On the first day of the 104th Congress, the new Republican majority will immediately pass the following major reforms, aimed at restoring the faith and trust of the American people in their government:

FIRST, require all laws that apply to the rest of the country also apply equally to the Congress;
SECOND, select a major, independent auditing firm to conduct a comprehensive audit of Congress for waste, fraud or abuse;
THIRD, cut the number of House committees, and cut committee staff by one-third;
FOURTH, limit the terms of all committee chairs;
FIFTH, ban the casting of proxy votes in committee;
SIXTH, require committee meetings to be open to the public;
SEVENTH, require a three-fifths majority vote to pass a tax increase;
EIGHTH, guarantee an honest accounting of our Federal Budget by implementing zero base-line budgeting.

Thereafter, within the first 100 days of the 104th Congress, we shall bring to the House Floor the following bills, each to be given full and open debate, each to be given a clear and fair vote and each to be immediately available this day for public inspection and scrutiny.

1. THE FISCAL RESPONSIBILITY ACT: A balanced budget/tax limitation amendment and a legislative line-item veto to restore fiscal responsibility to an out- of-control Congress, requiring them to live under the same budget constraints as families and businesses. (Bill Text) (Description)

2. THE TAKING BACK OUR STREETS ACT: An anti-crime package including stronger truth-in- sentencing, "good faith" exclusionary rule exemptions, effective death penalty provisions, and cuts in social spending from this summer's "crime" bill to fund prison construction and additional law enforcement to keep people secure in their neighborhoods and kids safe in their schools. (Bill Text) (Description)

3. THE PERSONAL RESPONSIBILITY ACT: Discourage illegitimacy and teen pregnancy by prohibiting welfare to minor mothers and denying increased AFDC for additional children while on welfare, cut spending for welfare programs, and enact a tough two-years-and-out provision with work requirements to promote individual responsibility. (Bill Text) (Description)

4. THE FAMILY REINFORCEMENT ACT: Child support enforcement, tax incentives for adoption, strengthening rights of parents in their children's education, stronger child pornography laws, and an elderly dependent care tax credit to reinforce the central role of families in American society. (Bill Text) (Description)

5. THE AMERICAN DREAM RESTORATION ACT: A S500 per child tax credit, begin repeal of the marriage tax penalty, and creation of American Dream Savings Accounts to provide middle class tax relief. (Bill Text) (Description)

6. THE NATIONAL SECURITY RESTORATION ACT: No U.S. troops under U.N. command and restoration of the essential parts of our national security funding to strengthen our national defense and maintain our credibility around the world. (Bill Text) (Description)

7. THE SENIOR CITIZENS FAIRNESS ACT: Raise the Social Security earnings limit which currently forces seniors out of the work force, repeal the 1993 tax hikes on Social Security benefits and provide tax incentives for private long-term care insurance to let Older Americans keep more of what they have earned over the years. (Bill Text) (Description)

8. THE JOB CREATION AND WAGE ENHANCEMENT ACT: Small business incentives, capital gains cut and indexation, neutral cost recovery, risk assessment/cost-benefit analysis, strengthening the Regulatory Flexibility Act and unfunded mandate reform to create jobs and raise worker wages. (Bill Text) (Description)

9. THE COMMON SENSE LEGAL REFORM ACT: "Loser pays" laws, reasonable limits on punitive damages and reform of product liability laws to stem the endless tide of litigation. (Bill Text) (Description)

10. THE CITIZEN LEGISLATURE ACT: A first-ever vote on term limits to replace career politicians with citizen legislators. (Description)

Further, we will instruct the House Budget Committee to report to the floor and we will work to enact additional budget savings, beyond the budget cuts specifically included in the legislation described above, to ensure that the Federal budget deficit will be less than it would have been without the enactment of these bills.

Respecting the judgment of our fellow citizens as we seek their mandate for reform, we hereby pledge our names to this Contract with America.

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