Hensarling blames U.S. Congress for budget deficit
BY GLORIA JENNINGS STAFF WRITER

l U.S. Rep. Jeb Hensarling (R-Dallas) is welcomed to Rusk by high school student, Lucas Turner. Rep. Hensarling visited with local residents Thursday morning in the county courtroom.

U.S. Rep. Jeb Hensarling (R-Dallas) discussed federal spending with constituents Thursday morning in the county courtroom at Rusk. He was at the courthouse to explain how the federal budget affects East Texas taxpayers. He serves on the House budget committee.

"The reason America has a deficit is because Congress spends too much, not because it taxes too little," he said.

Family expenses have increased 35 percent, compared to 65.4 percent in federal spending.

Rep. Hensarling explained that governmental internal affairs budget has gone up 130 percent; USDA has an increase of 51.6 percent; transportation, 71.5 percent; Medicare, 92 percent; and elementary and secondary federal expenses, 100.2 percent. There are 10,000 federal projects and 600 different agencies.

"This gap between family and federal spending has to be reconciled," he said.

"After the President's tax relief was enacted in May 2003, we saw federal revenues go up," he said.

The congressman explained after the tax relief legislation was enacted more small businesses were able to expand and others were able to open. This allowed for generating more tax revenue. "In this instance, tax relief was part of the deficit solution in our country," Rep. Hensarling said. "Tax revenue increased from $1.7 trillion to $2.5 trillion in 2007. This is the largest tax revenue increase in our country's history."

"When I studied economics at Texas A&M, I was taught that unemployment could not get any lower than five percent. But, since August 2003 7.4 million jobs have been created, resulting in a historically low 4.6 percent unemployment rate," Rep. Hensarling said.

"If something is not done in approximately 30 years all government spending will go to finance Medicare, Medicaid and Social Security. There will be no Air Force, no Marines, no veteran health care and other government programs, just the three. A family with an annual income of $66,111 is now paying $20,000 in taxes.

"That family will pay $40,000 in taxes in the next generation. This means that many families will not be able to purchase their first home and send the kids to college," Rep. Hensarling said.

"In the real world you do things better and cheaper. There is competition and people have figured out ways to do things cheaper. In the federal government, you spend more money to do the same things.

"First we need to balance the budget spending. It is immoral to pass on debt to our children. We need to limit the growth in spending to the growth in spending in the family budget.

Approximately 30 persons visited with the congressman.