Summer 2011 Town Hall Presentation

8/6/2019 Summer 2011 Town Hall Presentation

1/19

Congressman Dan Burton

Welcomes you to the

5th Congressional District

2011 Town Hall Series

http://burton.house.gov


2/19

Our Nations Fiscal Crisis

The Deficit: The Deficit in 2008, the last year before PresidentObama took office, was $458.6 billion. The projected deficit for 2011is $1.5 trillion. This years deficit is projected to be323 percenthigher than the Nations deficit was in 2008.

The National Debt:The National Debt stood at $10.626 trillionthe day President Obama was inaugurated. Today its $14.546trillion, an increase ofalmost $4 trillion dollars in just three years.

The Debt Ceiling: Has increased 3 times under the ObamaAdministration and 6 times since 2007, increasing from $10.6 trillionat theend of2008 to $14.294 trillionan increase of$3.694 trillionor 34.8%.


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Twice the Debt in Half theTime

The debt held by the public increased $2.4 trillion between 2000 and2008, from $3.4 trillion to $5.8 trillion. Under President Obamas budgetproposal, the debt held by the public is projected to increase $6.1 trillionbetween 2008 and 2012, from $5.8 trillion to $11.9 trillion.


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THE FEDERAL GOVERNMENT IS BORROWING MORE THAN 42

CENTS OF EVERY DOLLAR IT SPENDS

Source: Office ofManagement and Budget, Presidents Budget FY 2012


5/19

Source: U.S. Treasury Department, December 2010


6/19

Source: Office of Management and Budget Historic Tables, Congressional

Budget Office; projections based on the CBOs Alternative Fiscal Scenario.

10

20

30

40

50

60

70

80

1947 1952 1957 1962 1967 1972 1977 1982 1987 1992 1997 2002 2007 2012 2017 2022 2027 2032 2037 2042 2047 2052 2057 2062 2067 2072 2077 2082

WE ARE IN A SPENDING-DRIVEN DEBT CRISISHISTORIC/PROJECTED SPENDING & REVENUE AS A PERCENTAGE OF THE ECONOMY

Spending Tax Revenue


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63%

130%

144%

17%

0%

20%

40%

60%

80%

100%

120%

140%

160%

Social Security Medicare Medicaid & Other

Health Programs

U.S. Economy

AUTOPILOT PROGRAMS GREW FASTER THAN OUR ECONOMY

(CHANGE AS A PERCENTAGE OVER LAST TEN YEARS)

Source: Bureau of Economic Analysis,Office of Management and Budget


8/19

Why Social Security, Medicare andMedicaid Are Growing So Fast

SOCIAL SECURITY

Americans Are Living Longer

MoreSeniors Are Receiving

Benefits Than Ever Before

Birth Rates Arent Keeping Pacewith Retirement


9/19

TAXPAYERS SUPPORTING EACH SOCIAL SECURITY RECIPIENT

1950

1960

2000

2009

2040

16.5

8.6

3.4

3.0

2.1

Source: Social Security Administration, The 2010 Annual Report of the

Board of Trustees; Centers for Disease Control, U.S. Life Tables

RECIPIENT WORKERS

LIFE EXPECTANCY

1950 68

1960 70

2000 76

2009 78


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Why Social Security, Medicare andMedicaid Are Growing So Fast

MEDICARE & MEDICAID

The Cost ofHealth Care is Skyrocketing

An Aging Population is Leading to

Record Medicare Enrollment

The Economic Downturn is Leading toRecord Medicaid Enrollment


11/19

Obamacares Affects on Medicare and Medicaid?

The new law cuts $200 billion from Medicare Advantage, apublic-private hybrid ofMedicare. As a result, more than 11million seniors will likely see their Medicare Advantagepremiums rise significantly or their benefits noticeablylessened.

New law calls for an expansion in the Medicaid program by 50%which amounts to 500,000 new Medicaid beneficiaries inIndiana meaning 1 in 4 Hoosiers will beenrolled in the publicprogram.

Over the next 10 years, it will cost Hoosier taxpayers an additional

$2.4 billion dollars which includes the cost of the Medicaidexpansion as well as provider rate increases for Medicaid.

Healthy Indiana Plan (HIP) could be a thing of the past.


12/19

The Costs and Effects of Obamacare

In 2014, growth in privatehealth insurance premiums isexpected to accelerate to 9.4 percent, 4.4 percent higher than ifthe Democrats law hadnt been enacted.

From 2015-2020, growth in privatehealth insurance premiums isexpected to slow somewhat primarily because someemployerswill stop offering health coverage.

Once Obamacare ramps up (2015-2020), this trend will continueas largeemployers are expected to discontinue offeringhealth insurance to their workers.

National health spending will increase 80% by 2020, from $2.58trillion in 2010 to $4.64 trillion in 2020.


13/19

Jobs:The Failed $1.2 Trillion Stimulus

THE STIMULUS PROMISE: 3.7 million new jobs.

REALITY: 2.5 million jobs have been lost since the stimulus passed.

THE INDIANA PROMISE75,000 new jobs by Dec. 2010

REALITYIndianas unemployment rate is8.3% - Nationally 9.1% and hasbeen over 9% for 24 straightmonths

We cant borrow, tax, spend, and bail out our way to economicprosperity and job growth.


14/19

Solutions For Reviving our Economy

Cut wasteful government spending and unnecessary regulations tohelp theeconomy grow and help businesses create jobs.

You cannot help the job seeker by punishing the job creator withhigher taxes and more government red tape.

Small business owners and voters want less red tape! Less costlypaperwork for Americas job creators means more jobs forAmerican workers.

To restore certainty to theeconomy and foster job growth, wemust stop spending money we dont have.


15/19

GOP Budget

Keeps taxes low so theeconomy can grow.

Calls for a simpler, less burdensome tax codefor familiesand small businesses, improving incentives for growthand investment.

Stops the raid on the Medicare trust fund by reformingMedicare.

Secures our health and retirement benefit programs andsaves Medicare.

Strengthens Social Security and forces action from thePresident and both chambers ofCongress to ensure thesolvency of this critical program.


16/19

Cut, Cap and Balance

Cut - We must make discretionary and mandatoryspending reductions that would cut the deficit in halfnext year.

Cap - We need statutory, enforceable caps to align

federal spending with average revenues at 18% ofGross Domestic Product (GDP), with automatic spendingreductions if the caps are breached.

Balance - We must send to the states a BalancedBudget Amendment (BBA) with strong protectionsagainst federal tax increases and a Spending LimitationAmendment (SLA) that aligns spending with averagerevenues as described above.


17/19

Boehner Plan 2.0

Required the House and Senate to pass balanced budgetamendment before the second debt limit increase occurs.

Cut and cap discretionary spending immediately, cutting$22 billion in spending next year, and saving $917 billionover ten years, and raise the debt ceiling by less up to

$900 billion in order to avoid default.

Includes no taxhikes, and ensures that if taxhikes are apart ofany negotiations for a future debt limit increase.

Cuts MoreThan It Hikes.

For thefirst time in thehistory ofmodern federalbudgeting, the House will cut discretionary federal spendingfor two straight years.


18/19

Reid-Boehner Agreement

Ifno disapproval, $500b additional

debt ceiling increase

Joint Committee Forms

Joint Committee reports

and Congress enacts bill

with at least $1.2

trillion in debt reductionPresidential request for

$1.5 trillion debt ceiling

increase (subject to

disapproval); Joint

Committee continues

work

Balanced Budget Amendment vote

BBA passesBBA failsJoint Committeeeither fails

completely or enacts less than

$1.2 trillion in debt reduction

Unless already granted due to BBA

passage, Presidential request for

$1.2 trillion debt limit increase

(subject to disapproval); no

matter what, across-the-board

cuts make up the difference

between deficit reduction to come

out of Committee and $1.2 trillion

Presidential request for equal

amount ofdebt ceiling

increase (subject to

disapproval) up to $1.5

trillion (unless alreadygranted due to BBA passage)

$400b debt ceiling increase

(subject to disapproval)


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Summer 2011 Town Hall Presentation

Documents

Transcript of Summer 2011 Town Hall Presentation