DEMOCRATS’ PROMISES: FISCAL RESPONSIBILITY & TAXES

DEMOCRATIC PROMISE #49: Restore Fiscal Responsibility
Promise: “Democrats offer a New Direction which includes fiscal responsibility.” – Democratic Caucus Chairman James Clyburn, Press Release, October 10, 2006

Promise: “We will work together to lead the House of Representatives with a commitment to integrity, to civility, and to fiscal responsibility.” – Speaker-Elect Nancy Pelosi (D-CA), Press Release, November 16, 2006

Promise: “It is imperative to the future of our nation that we come together – Democrats and Republicans – and restore fiscal responsibility.” – Majority Leader Steny Hoyer (D-MD), Press Release, January 23, 2007

Broken Promise: “[Now-Democratic Whip James Clyburn (D-SC)] also said he loves appearing in the [Citizens Against Government Waste] Pig Book. ‘I want to be there as often as I possibly can for as much money as I possibly can,’ he said.” – “Clyburn Defends Budget Earmarks,” The Post and Courier (Charleston, SC), February 21, 2007

Broken Promise: “…Democrats resorted to begging, threatening and, worst of all, bribing members for their votes with $21 billion in pork-barrel projects…Loading a bill that’s supposed to keep our soldier in bullets, boots, and beans with pork-barrel bribes for congressional colleagues must be a low point in the history of the U.S. Congress. This destroys any pretense Democrats have to being a party of fiscal responsibility and good government.” – “Buying Votes; Military Funding Bill a Stain on Congress,” The Gazette Editorial (Colorado Springs, CO), March 27, 2007

Broken Promise: “It’s hard to say which is worse: [Democratic] leaders offering peanuts for a vote of this magnitude, or members allowing their votes to be bought for peanuts.” – “Pork Has No Place in ‘Emergency’ War Bill,” USA Today Editorial, March 22, 2007

DEMOCRATIC PROMISE #50: Keep Taxes Low for Middle-Class Families
Promise: Then-Minority Leader Nancy Pelosi (D-CA) promised, in response to a reporter’s question, that House Democrats would not raise taxes on middle-class families:

QUESTION: If Democrats do take back control of Congress, how concerned should the average American be about a possible increase in his or her taxes?

PELOSI: “Not at all. Democrats are talking about no deficit – we’re talking about fiscal responsibility.” – Press Conference, July 28, 2006

Broken Promise: “Democrats also put their stamp on managing the country’s finances with [a budget] effectively resulting in the largest tax increase in history.” – “Report Card; Sound, Fury Outweigh Substance So Far,” The Oklahoman Editorial, April 2, 2007. The Democrats’ budget includes a tax hike of at least $217 billion by fiscal year 2012, and includes a tax hike “trigger” that would reimpose the marriage penalty and cut the child tax credit in half, tax hikes that would have a direct impact on middle-class families.

DEMOCRATIC PROMISE #51: Expand the Child Tax Credit
Promise: “In an Oct. 5 speech at Georgetown University, House Minority Leader Pelosi pledged to make the child tax credit more generous for lower-income families…” – “Taxes – Democrats Would Pare the List of Potential Tax Changes,” CongressDaily PM, October 19, 2006

Broken Promise: “The Senate budget resolution (S Con Res 21) included an amendment by Finance Chairman Max Baucus, D-Mont., that proposes using a $132 billion projected fiscal 2012 surplus to pay for extending the tax cuts, such as those affecting married couples, the child tax credit and estate tax changes. The House version (H Con Res 99) does not make room for those tax provisions which expire in 2010.” – “Tax-Cut Proposal Rides With House-Adopted Fiscal 2008 Budget Resolution,” Congressional Quarterly, May 8, 2007. The Washington Post also reported earlier this year that “[W]hile House Democrats say they want to preserve key parts of Bush's signature tax cuts, they project a surplus in 2012 only by assuming that all of the cuts expire on schedule in 2010.” – “Budget Plan Wipes Out Deficit But Leaves $50 Billion Dilemma,” Washington Post, March 29, 2007

DEMOCRATIC PROMISE #52: Pass Budget Without Tax Hikes
Promise: “There are no tax increases in this [budget].” – Majority Leader Steny Hoyer (D-MD), House Floor Remarks, March 29, 2007

Broken Promise: “But both the House and Senate [Democratic] budgets implicitly require tax increases in the years ahead. Neither offers any guidance about where the needed extra revenue would come from.” – “House Budget Is Clear on Spending, Vague on Revenue,” New York Times, March 30, 2007

DEMOCRATIC PROMISE #53: Repeal the Alternative Minimum Tax
Promise: “[T]he Wyden-Emanuel tax reform plan… eliminates the Alternative Minimum Tax...” –The Plan, Rahm Emanuel & Bruce Reed, Page 138

Broken Promise: “House Ways and Means Chairman Charles Rangel (D., N.Y.) is believed to be considering a permanent exemption for households below a given income level, rather than repealing the AMT altogether, as some lawmakers have proposed.” –“Alternative Minimum Tax; Rein It In,” Philadelphia Inquirer, April 16, 2007. Six months after taking power in Congress, Democrats have yet to move legislation of any kind to repeal or reform the AMT – a tax Democrats created.

DEMOCRATIC PROMISE #54: Make AMT Overhaul a “Centerpiece” of their Budget
Promise: “Democratic leaders this week vowed to make the alternative minimum tax a centerpiece of next year’s budget debate...” –“Alternative Minimum Tax Targeted,” Washington Post, November 11, 2006

Broken Promise: “Democratic leaders have made overhauling the AMT a top priority, but they have yet to lay out a plan …” – “Budget Plan Wipes Out Deficit But Leaves $50 Billion Dilemma,” Washington Post, March 29, 2007

DEMOCRATIC PROMISE #55: Reform Entitlement Spending to Protect Future Generations
Promise: “This summer, Office of Management and Budget Director Rob Portman said the administration would return to entitlements and taxes in earnest following the elections. Senior Democrats on the House & Senate budget committees, Sen. Kent Conrad (N.D.) and Rep. John Spratt (S.C.), responded by saying Congress, not the administration, must drive those efforts.” – “Bush, Democrats Face Legislative Opportunities and Obstacles,” The Hill, November 9, 2006

Broken Promise: “But the [Democratic budget] plan puts off tough and divisive decisions … [Democrats] did not include proposals to control the growth of entitlement programs that are projected to swamp the rest of the budget in coming decades as the baby-boom generation retires.” – “House Democrats Narrowly Pass Budget Test,” Congressional Quarterly, March 29, 2007

Broken Promise: “[The Democratic budget] does nothing to curtail runaway entitlement spending.” – “Prepare for Fiscal Irresponsibility,” Tallahassee Democrat Editorial, April 16, 2007

Broken Promise: “Ignoring experts’ repeated warnings about the unsustainable rate of entitlement spending, the [Democrats’ budget] does nothing, and puts off any major reform for at least 5 years. . .The only “savings” under the expedited procedure of budget reconciliation are a meager $750 million – out of a total of roughly $8.5 trillion in mandatory spending over the next 5 years. The ‘savings’ are really just a fig leaf providing filibuster protection to expand big-government spending by as much as $22 billion. This is not reform, and it does nothing to address the massive entitlement problem.” – House Budget Committee Republican staff, Spring 2007

DEMOCRATIC PROMISE #56: Support Bipartisan Solutions to the Entitlement Crisis
Promise: “We do need to come together on a bipartisan basis on entitlements.” – Rep. Lloyd Doggett (D-TX), House Budget Committee Member; House Floor Remarks, March 28, 2007

Broken Promise: House Democratic leaders have been silent on H.R. 473, legislation introduced by Rep. Frank Wolf (R-VA) that would establish a bipartisan commission to develop legislation designed to reform tax policy and entitlement benefit programs and ensure a sound fiscal future for the United States.

DEMOCRATIC PROMISE #57: Institute “PAYGO” To Control Spending
Promise: “Democrats are committed to fiscal responsibility through pay-as-you-go budgets, so that our children and grandchildren are not saddled with mountains of debt.” – Speaker Nancy Pelosi’s (D-CA) Website

Broken Promise: “In Washington … congressional leaders have imposed ‘pay-as-you-go’ budget rules that exclude the existing entitlement programs, such as Medicare and Medicaid, which dominate federal spending. So ‘paygo’ is really just political cover for new taxes to support new spending.” – “Killing the Goose,” San Diego Union Tribune Editorial, April 16, 2007

DEMOCRATIC PROMISE #58: Adopt Honest Budgets
Promise: “[T]he new Democratic-led House takes America in a new direction-a fiscally responsible budget with the right priorities. Budget Committee Chairman John Spratt is a master of the budget, and he and his team have done an outstanding job reflecting the right American priorities and values.” – Speaker Nancy Pelosi (D-CA), Press Release, March 21, 2007

Broken Promise: American families don’t have the option of using gimmicks to put their family budgets in order. But such rules weren’t applied by House Democrats in crafting their budget, which is loaded with trickery that hardly reflects “American priorities and values.” “The House and Senate versions of the budget depend on ‘reserve funds’ to pay for additional spending…There’s only one catch: The reserve funds are empty.” – “Democrats Banking on Empty Reserves,” Los Angeles Times, March 27, 2007

DEMOCRATIC PROMISE #59: Balance the Budget
Promise: “Democrats will produce a budget that makes real progress toward balancing the budget, [and] makes wise choices. . .” – Democratic Caucus Chairman Rahm Emanuel (D-IL) Press Release, February 5, 2007

Broken Promise: “Before leaving town for spring break, [Democrats] passed a budget resolution that stands as a model of fiscal irresponsibility. How bad is the House budget? For starters it would surpass this year’s record-breaking spending level by 9 percent – three times the expected rate of inflation.” – “Prepare for Fiscal Irresponsibility,” Tallahassee Democrat Editorial, April 16, 2007. The House Democratic budget assumes an increase in the national debt of $850 billion. Democrats voted en masse against a GOP substitute budget that achieves balance by 2012 and ends the raid on Social Security without raising taxes.

DEMOCRATIC PROMISE #60: Change Washington’s Spending Habits
Promise: “Democrats are committed to ending years of irresponsible budget policies that have produced historic deficits.” – Speaker Nancy Pelosi’s (D-CA) “A New Direction for America,” Page 25

Broken Promise: In six months time, Democrats have authorized $828,330,870,000.00 in new federal spending. – Source: RSC Money Monitor, June 22, 2007

DEMOCRATIC PROMISE #61: Extend the Bush Tax Cuts
Promise: Ways & Means Committee Chairman Charlie Rangel (D-CA): “I’m not contemplating any increase in taxes. I’m not assuming they will expire.” – “Republicans Start New Pastime: Reading Dems’ Tea Leaves,” CongressDaily AM, March 1, 2007

Broken Promise: “House Majority Leader Hoyer told reporters Tuesday that the budget plan would not assume all of President Bush’s policies are extended.” – “Republicans Start New Pastime: Reading Dems’ Tea Leaves,” CongressDaily AM, March 1, 2007

DEMOCRATIC PROMISE #62: Move Appropriations Bills Before July 4
Promise: “The House [will] have all 12 annual spending bills passed by the July fourth recess, in order to give the Senate enough time to take them on. . . Given the House Democrats’ goal of having all 12 bills passed by July Fourth, it appears that the Defense appropriations bill will be the last train out of the station.” – “Forget About the Ongoing, Hostile Partisanship Over the $125 Billion Supplemental Iraq War Spending Bill,” Roll Call, May 1, 2007

Broken Promise: “. . .Democrats [have] scaled back their ambitious goal of passing 11 of the 12 fiscal 2008 spending bills by the July Fourth recess.” – “Earmark Dispute Puts a Dent in Democrats’ Calendar on Spending Bill Work,” Congressional Quarterly, June 15, 2007

DEMOCRATIC PROMISE #63: Eliminate the Capital Gains Tax for Middle Class Families
Promise: “Eliminating the capital gains tax on the middle class … will help make sure America is a country where work leads to wealth.” – The Plan, Rahm Emanuel & Bruce Reed, Page 113

Broken Promise: As of June 27, 2007, neither Rep. Rahm Emanuel (D-IL) nor any other House Democrat has introduced legislation to eliminate the capital gains tax for middle-class families.

DEMOCRATIC PROMISE #64: Enact Tax Reform With a Cap on Middle-Class Taxes
Promise: “We need tax reform that puts a cap on middle-class taxes …” –The Plan, Rahm Emanuel & Bruce Reed, Page 113

Broken Promise: “The [Democrats’ budget], set for a vote today, requires either that millions of middle-class families be hit with higher taxes next spring or that somebody else pay an extra $50 billion.” – “Budget Plan Wipes Out Deficit But Leaves $50 Billion Dilemma,” Washington Post, March 29, 2007. Democratic leaders have not introduced or passed any type of tax reform legislation.