Robert L. Ehrlich, Jr. letter to R. A. S., February 9, 1998

ROBERT L. EHRLICH, JR. Congress of tfje fflniteb States S)ouSe ot Seprescntattoes ©blagfjmgton, 2Э< 1 20515-2002 February 9, 1998 45 North Main Street (410) 838-2517 Dundalk, MD 21222 (410) 284-5828 Thank you for your comments regarding President Clinton’s State of the Union speech and his fiscal year 1998 budget. I appreciate hearing your views. I was disappointed by the President’s budget. In my view, this budget, by increasing spending and raising taxes, undermines last year’s balanced budget agreement. In other words, the Clinton budget signifies that the era of big government is back. Here are some of my own observations about the President’s budget: • Overall spending during FY 99 under Clinton’s plan increases by $1 5 billion, or 4 percent over the current fiscal year, and $150 billion over the next 5 years. • President Clinton’s budget includes 85 new spending initiatives, including 39 new entitlements. Clinton’s new entitlements add $7 billion in spending next year, and $53 billion more over the next 5 years. • The Clinton budget creates 49 tax increases totaling $ 1 06 billion and user fees totaling $23 billion (over five years). As a percentage of gross domestic product, Clinton’s budget increases taxes from 19.9 percent in 1998 to 20.1 percent in 1999. This percentage is higher than when President Clinton took office (17.6 percent) and is almost at the level achieved during World War II (20.1 percent). • Clinton's budget banks on the $65.5 billion over 5 years which it assumes will result from a national tobacco settlement. • An essential part of last year’s budget agreement were caps on discretionary spending. — the spending on programs the Congress and President provide every year through the 13 appropriation bills. This year, the President uses budgetary gimmicks to break the spirit of the agreement, such as user fees and tax revenue proposals to offset increases in discretionery spending.