Cost of Government Day Finally Arrives

Every year, the Americans for Tax Reform Foundation and the Center for Fiscal Accountability calculate Cost of Government Day. This is the day on which the average American has earned enough gross income to pay off his or her share of the spending and regulatory burdens imposed by government on the federal, state, and local levels.

In 2010, Cost of Government Day falls on August 19. That means working people must toil 231 days out of the year just to meet all costs imposed by government. In other words, the cost of government consumes 63.41 percent of national income.

“Two years ago Americans worked until July 16 to pay for the cost of government: all federal, state and local government spending and regulatory costs.  That government was too expensive and wasteful.  Two years later, we work until August 19 for the same bloated government.  We have lost an additional full month of our income to pay the cost of government in just the last two years,” said Grover Norquist, president of Americans for Tax Reform.

Key findings of the report include:

1. Cost of Government Day (COGD) falls 8 days later in 2010 than last year’s revised date of August 11.
2. Workers will have to labor 104 days just to pay for federal spending, which consumes 28.6 percent of national income.
3. Taxpayers will have to work 52 days just to pay for state and local government expenditures.
4. The average American worker must labor 74 days to cover the costs of government regulations. A breakdown of the COGD components can be found here.
5. The report also includes a state breakdown. The earliest Cost of Government Day occurs in Alaska, on July 28. Connecticut has the latest COGD, on September 17.
6. One of the contributing factors to increased spending is the growth in government payrolls. The federal workforce totaled 4.4 million employees this year, while the addition of state and local workers brings the total government workforce to 24.315 million employees.
7. The report also tracks taxpayer migration, showing taxes are a driving component behind interstate movement. In 2008, the ten states with no income tax gained over 80,000 new residents who brought with them over $900 million in net adjusted income. In contrast, the states with the highest tax burden lost 129,445 residents and $10.2 billion in wealth.

PelosiCare: An Expensive Mistake

The most recent report from the Center for Medicare and Medicaid Services brings a new level of disappointment following the hype and false promises of healthcare reform.

This report, an assessment from the non-partisan CMS, confirms the Democrat health plan will raise healthcare costs and threaten access to care for millions of Americans.

When the Ways and Means Committee called for this review in March, we knew the American people wanted all of the facts before moving ahead with the Democrat health bill.  Speaker Pelosi rushed the bill through the House without giving time to thoroughly evaluate it, actually claiming “we have to pass the bill so that you can find out what is in it.” This new CMS report reveals exactly why the Speaker wanted to keep the American people in the dark about the details of her damaging healthcare legislation.

I am extremely disappointed that the American people now face a healthcare law that increases spending at a time when Congress’ priority should have been on reducing out-of-control costs.  While millions more Americans will receive insurance cards under this legislation, few will have meaningful access to healthcare.  Under the bill, almost half of all new individuals gaining ‘coverage’ will be dumped onto Medicaid, a failing welfare program that will not meet their healthcare needs.

The report finds that while the legislation will nominally achieve President Obama’s goal of expanding coverage to 34 million individuals, it will ultimately do so by forcing 18 million Americans onto a broken Medicaid system, “exacerbating existing access problems for Medicaid enrollees.”  The study estimates that national healthcare expenditures “would increase by $311 billion” as a result of the new law.  Additionally, fourteen million employees who currently enjoy employer-sponsored insurance will be dropped from their coverage.  Finally, the bill increases pressure on an already serious health professional shortage, meaning patients will have to wait in long lines for their health treatment and care.

This is neither the responsible spending nor policy people want. Rushed and forced healthcare that doesn’t meet the needs of the people is a pointless, expensive mistake

GOP Launches Health Care 218

U.S. Rep. Peter Roskam and the Republican members of Congress are launching a program called “Health Care 218,” a plan to educate Americans on the necessity to repeal and replace the Democratic health care plan passed last week. The 218 refers to the number of days between the launch of the program and the November 2 election.

Over the next 218 days the GOP program will “daily chronicle the massive new costs, delays, hidden problems and bureaucratic hurdles the recently passed healthcare legislation will impose on American families.” The program will show the extraordinary costs of the Obama health care plan which will mean new taxes and massive amounts of new national debt. Republican leaders predict taxes will increase by $569.2 billion under the Obama plan.

Republican leaders are counting on this program to impact the general election and help sweep Republicans back into control of the House and perhaps the Senate.

For details on the tax increases go here.

Illinois GOP: Health Care Bill will Kill Jobs

Illinois GOP Chairman Pat Brady said the health care bill that narrowly passed Congress last night will kill jobs and add to the budget crisis Illinois is facing.

“After a series of backroom deals and arm twisting by Nancy Pelosi to buy support for an unpopular health care bill, Illinois Democrats helped pass a 2.5 trillion dollar government takeover of health care that will kill much-needed jobs in Illinois. Last week an important Illinois employer, Caterpillar said they would lose under the Democrats’ plan spelling disaster for Illinois workers – and that is likely just the beginning.

“Illinois has one of the highest unemployment rates and bleakest economic outlooks in the country, yet Illinois Democrats voted for a bill that will kill jobs and add to the state’s budget crisis without bringing down the cost of health care premiums. Americans overwhelmingly oppose this bill, but Illinois Democrats ignored the consistent pleas from their constituents who will now have to deal with the consequences of their bad decisions. In November these same voters will have the opportunity to come to the polls and vote for Republican candidates who will listen to them and focus on creating jobs – not on a government takeover of health care.”

Last Hope for Voters: Fire Nancy Pelosi