Yesterday was the day hard-working Americans sent the IRS their taxes.

It is ironic that on a day millions of responsible people send the government precious dollars, the Democrats in Congress passed legislation to repeal a provision to help enforce our nation’s tax laws. A provision of the American Jobs Creation Act of 2004 gave the Internal Revenue Service (IRS) the authority to use private debt collection agencies to assist in the collection of overdue individual taxes. These are taxes that IRS has admitted they don’t have the man power to go after and would otherwise go uncollected. It is estimated that allowing these private debt collectors could save the federal government between $1.5 billion and $2.2 billion in gross revenue from 2007 through 2016.

It is important to note that during debate on this legislation, Democrats also voted against making permanent the tax cuts of 2001 and 2003 because they say they cost too much. It doesn’t cost too much to let deadbeat taxpayers off the hook, but it does cost too much to let hard working, responsible Americans keep more of what they earn. 

You knew this day would come….Tax day. 

I have routinely supplied you with facts about the inadequacies of our tax code, but some of these might startle you.

• This year, 100% of the income the average American earns from January 1st to April 22nd (113 days) will go to pay federal, state, and local taxes in 2008, according to the Tax Foundation.  Therefore, April 23rd will be “Tax Freedom Day,” the day on which the average American will start working for anything besides taxes.  74 days of work this year will just be for paying federal taxes.
• Americans still spend more time working to pay taxes to all levels of government than they spend working to pay medical expenses, put food on their tables, and buy clothing combined.

If nothing is done, and Congress takes no action, by 2011 you can expect the following tax increase:

• The marginal income tax rates will increase as follows:

                --35% bracket will increase to 39.6%
                --33% bracket will increase to 36%
                --28% bracket will increase to 31%
                --25% bracket will increase to 28%
                --10% and 15% brackets will condense to 15%

• The capital gains rates for individuals will increase from 15% and 0% to 20% and 10%.
• Dividends will no longer be taxed at the capital gains rates for individuals, thereby increasing the double taxation of dividends by as much as 62%.
• The standard deduction for couples as a percentage of the standard deduction for singles will decrease from 200% to 167%--restoring the marriage penalty.
• The top end of the 15% marginal income tax bracket for couples as a percentage of the top end for singles will decrease from 200% to 167%--restoring the marriage penalty.
• The child tax credit will decrease from $1,000 to $500.
• The “death” tax using the “stepped up” basis will return with a 55% maximum rate (including surtax) and a $1 million exemption, after years of decreasing “death” tax rates, increasing exemptions, and one year using the “carryover” basis to calculate the tax due.

Happy Tax Day! (note: heavy sarcasm)

Today I was joined by my fellow members of the Republican Study Committee in introducing the Spending Limit Amendment to the Constitution, one of the 4 legs that will become the “Taxpayer Bill of Rights”.

The undeniable fact remains that the projected growth of federal spending across the board is at an unsustainable rate.  It will threaten the standard of living of our children and grandchildren.  By the year 2040, taxes would have to double in order to pay for all of the federal spending that will compound if no action is taken.

The Spending Limit Amendment has several provisions designed at tackling the fiscal problems in the United States, here are the most prominent:

1.)It puts a lid on Federal Spending- Limits federal spending from growing faster than the nominal GDP.  Thus capping federal spending at 20.0% of GDP.

2.)It requires the President’s Budget to comply with the spending Limit- Requires the President’s annual budget submission to have an overall spending total that complies with the spending limit.

3.)Prevents gimmicks to get around Cap- Prevents Congress from creating a new accounting system that disregards some spending to get around the cap, for instance the vaunted Democrat PAY-GO principle.

4.)Exception for 2/3rds vote of Congress- The Congress may suspend the limit for any reason with a 2/3rds vote of both Houses.

5.)Effective Date- This would take effect the second fiscal year after ratification.  For example: if the amendment were ratified prior to September 30, 2008, it would be effective for FY 2010.

6.) Exception for Declaration of War- The spending limit requirement is waived for any year that a declaration of war is in effect.

The Spending Limit Amendment will prove instrumental in ensuring fiscal restraint and discipline in the federal spending process.

The other day I blogged about my “Put Your Money Where Your Mouth Is” Act.  I received an overwhelming response from groups like Citizens against Government Waste, Americans for Prosperity, the National Taxpayer’s Union, and Americans for Tax Reform. 

This morning the “Put Your Money Where Your Mouth is Act” was featured in the Wall Street Journal.  For your reading pleasure I’ve included the text below:

The Tax Me More Act
April 11, 2008
Wall Street Journal, Page A16

We recently suggested that if Bill and Hillary Clinton are eager to pay more taxes, they should write a personal check to the U.S. Treasury to compensate for the lower tax rates they so frequently decry. And lo, here comes legislation to make it easier for the former first lady and other pseudo-populists to do just that.

California Republican John Campbell yesterday introduced in the House his "Put Your Money Where Your Mouth Is Act," which would amend the tax code to allow individuals to make voluntary donations to the federal government above their normal tax liability. The bill would place a new line on IRS tax forms to make this easy.

Mr. Campbell says he has heard the "cries" of those wealthy Americans – Mrs. Clinton, Warren Buffett, Barbra Streisand – who reject the lower tax rates passed in 2001 and 2003 and complain that they and their fellow rich don't pay enough. "It's a great injustice that citizens wishing to fulfill their dream of paying more taxes cannot simply check a box on their 1040 form to make a donation," he says. His bill would give liberals a chance to salve their consciences without having to raise taxes on millions of Americans who already feel overtaxed as it is.

Still, don't expect many to take Mr. Campbell up on his offer. The Treasury already accepts voluntary donations to decrease the nation's debt; last year it received all of $2.6 million. Apparently even most liberals would rather keep their money, or bequeath their estates to charity rather than to the IRS.

On Thursday, I will officially roll out my “Put Your Money Where Your Mouth Is” Act, in a press conference in Washington D.C.  This bill will amend the Tax Code to allow individuals to make voluntary donations to the federal government above and beyond their normal tax liability, and actually put a line on the IRS tax form to make it easier to make donations. 

Last week, Presidential Candidate Senator Hillary Clinton stated that "We didn't ask for George Bush's tax cuts. We didn't want them, and we didn't need them."

On Monday, the Wall Street Journal printed an editorial that proclaimed:

“If the former first lady feels so strongly that she should pay more taxes, we suggest she lay off the middle class and instead write a personal check to the U.S. Treasury for the difference between the Clinton and Bush tax rates."

It’s time Senator Clinton and other high-profile liberals like Senators Hillary Clinton (NY) and Barack Obama (IL), Warren Buffett, and Barbra Streisand who have publicly stated that Americans should pay more taxes, to put their money where their mouth is.

To the regular readers of this blog, it is no secret that Congressman Jack Murtha (D-PA) is the “King of Pork”.  That dubious honor is not a fleeting one.

Last week CBS news ran a piece on Congressman Murtha and his pork barrel politics. According to an estimate from Taxpayers for Common Sense(TCS), Over the past 4 years alone, Murtha has managed to secure more than $600 million in earmarks, and $2 billion since 1992.

In FY 2008 Appropriations bills Mr. Murtha garnered $160 million worth of earmarks.  Every private entity that received an earmark from Mr. Murtha also made a campaign contribution, according to information from TCS.

This kind of behavior of receiving earmarks for campaign dollars is reprehensible, and a dreadful way of spending your tax dollars.

To see the rest of the CBS report see the video below.

Soon the Capitol Dome may have new lights.  Speaker Pelosi’s Green the Capitol initiative has been the subject of much debate among spending advocates and Members of Congress, and the Capitol Dome illumination plan is no exception.

The “Green the Capitol Initiative” is part of Speaker Pelosi’s environmental policy which includes increased usage of recycled paper, and carbon offset purchases for the House’s greenhouse gas emissions.

Green the Capitol includes an update of the lighting system that illuminates the Capitol Dome at night time.  The contract chosen by the House Administration Committee, worth $671,900 (not including installation), was steered to Rep. Robert Brady’s (D-PA) district - despite receiving other less expensive bids.  As an aside, Mr. Brady is chairman of the House Administration Committee.

I agree that we have a responsibility to be good stewards of the environment, but it must be done in a consistent manner.  Dan Beard, The House Chief Administrative Officer, said of this new lighting project: “We’re not going to drastically cut our energy consumption…”  If Speaker Pelosi would like to upgrade the Capitol’s lighting system at such an exuberant cost, why doesn’t she just come out and say it? 

Furthermore, it would take more than 45 years to recoup the money spent on the new “energy efficient” systems design. 

My question is this, if it is not going to significantly cut energy consumption, and it will actually cost more money in the long run, what is the goal of such a extensive and costly overhaul?

This morning I joined Citizens Against Government Waste (CAGW) in announcing the release of the 2008 Congressional Pig Book.  CAGW has been releasing the Pigbook as an expos of the wasteful pork-barrel spending in Washington for the past 18 years.

For FY 2008, CAGW found that the porkers in Congress stuffed 11,610 separate pork projects into the 12 appropriations bills.  This marks the second highest total ever of pork projects, totaling $17.2 billion.  That is a 337% increase over the 2,658 projects in fiscal year 2007, and a 30 percent increase over the $13.2 billion total in fiscal year 2007. Out of the 11,610 projects in the 2008 Pig Book there were 11,146 disclosed projects worth $13.8 billion and 464 undisclosed projects worth $3.4 billion.

The CAGW Pigbook highlights many of the earmarks of which I have called to question on the floor of the house including Chairman Charlie Rangel’s infamous “Monument to Me”.

Some other egregious examples include:

 $3 million for The First Tee;
 $1,950,000 for the Charles B. Rangel Center for Public Service;
 $460,752 for hops research;
 $211,509 for olive fruit fly research in Paris, France;
 $196,000 for the renovation and transformation of the historic Post Office in Las Vegas;
 $188,000 for the Lobster Institute in Maine; and
 $148,950 for the Montana Sheep Institute.

You can find a PDF copy of the 2008 Pigbook here, or at my website.  www.campbell.house.gov

Despite support from Presidential Candidates on both sides; the Associated Press is reporting House Speaker Nancy Pelosi (D-CA) has quietly put any hope of an earmark moratorium on ice. 

Over the past month, Pelosi has steadily increased her criticism of the controversial earmark system in Congress:

 “My patience is running out on earmarks….” (AP, 3/6/08)

Speaker Pelosi: “I'm not sure that I see a scenario in which there would be earmarks this year.” (The Washington Post, 3/14/08)

Speaker Pelosi “has signaled a growing weariness with the [earmark] debate and a desire to take the issue off the table going into the November elections.” (Politico, 3/11/08)

“House Dems consider forcing vote on earmarks. House Democratic leaders have grown irritated at … calls for earmark reform by Republicans, and are contemplating … a moratorium on pet spending projects.” (The Hill, 3/6/08)

It just goes to show, that the porkers are still in charge of the Democrats and they still retain significant influence with Republican leadership.  Otherwise, we would have had an earmark moratorium by now.

Thus far 38 Members of the House (4 Democrats & 34 Republicans) have voluntarily taken a pledge to halt their requests for earmarks.

Those of you who follow Congressional proceedings closely will know that tomorrow the House will take up consideration for the President’s Emergency Plan for AIDS Relief (PEPFAR).  This legislation has been tossed around in committee between Republicans and Democrats before a “bipartisan agreement” was reached

Originally PEPFAR was authorized for $15 billion ($3 billion for five years). Presently, PEPFAR gets about $6 billion a year. This new legislation being considered would increase this authorization to $10 billion per year or $50 billion over 5 years.

But the simple fact remains, it spends too much money.

Today, I submitted an amendment that will level fund the program at 3 billion per year. 

The point here is that PEPFAR and numerous other government programs spend too much money.  PEPFAR increases the overall foreign aid program by 15%, by itself.  All in a year when the economy is teetering on recession. 

We now have a deficit projected at over $400 billion and increasing; and many people here in Washington are talking about raising taxes. With spending programs like this, we will never get to a balance if we keep increasing such programs by over 300%.  Not to mention, programs like these are separate of our defense and domestic needs

If there was a time to pull in the reins on spending, it is now.

Normally, during a recess period things are kind of quiet around Capitol Hill and you would think your pocketbook is safe.  However, the Appropriations Committee is as busy as ever.  Yesterday an email was circulated highlighting the backlog of earmark requests before the deadline(see below). 

Subject: URGENT -- EXTENSION OF DEADLINE FOR APPROPRIATIONS COMMITTEE REQUESTS.  PLEASE DISTRIBUTE TO APPROPRIATE STAFF.

Dear Member Offices:

As a result of the massive influx of requests being submitted today, the Appropriations Committee website is experiencing unavoidable access and processing delays.

In order to accommodate Member offices attempting to input data, any request submitted by 11:59 p.m. on Monday, March 24th will be considered as having been submitted “on time” for purposes of consideration by the Committee.

Even though we have made significant strides in getting the process reformed, the earmark gravy train moves forward.

This was yet another opportunity to reign in reckless spending in Washington.  However, Leaders in both the House and Senate have shirked their responsibilities to the people in allowing this practice to continue unabated.

I just got back from the floor.  Take a look at my speech below.  In it, I address some of the most glaring problems with the Democratic budget proposal.

Should we believe what they say or what they do? Or neither?