2006
“New Direction for America” Points Toward Higher Taxes, Deficits
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(Alexandria, VA) — The Democratic Party's "New Direction for America" might attempt to steer government toward a sounder financial footing, but its course leads to $79.1 billion in new annual federal spending, according to a line-by-line analysis by the non-partisan National Taxpayers Union Foundation (NTUF). Among the findings:
- Health care represented the largest spending category at $28.8 billion, or 36 percent of the total agenda. Within this category, Democrats proposed to "fix the Medicare prescription drug program," which would cost $29.5 billion annually. The plan did call for spending cuts amounting to just over $1 billion, in order to "end wasteful giveaways to drug companies."
- Veterans care was high on the list as well, at $19.8 billion. The initiative to launch a "G.I. Bill of Rights for the 21st Century" would provide increased pay, health care, and other benefits for veterans and their families. This program would increase outlays by $99 billion over 5 years, and would be offset by increasing the top income tax rate.
- Education spending, at $16.2 billion, represented approximately 20 percent of the total net agenda. The Democratic plan called for increasing the maximum individual Pell Grant to $5,100 ($4.0 billion in total annual spending), recruit science and math teachers ($3.7 billion yearly), and reduce college loan interest rates ($7.4 billion annually), among other items.
- Yet another proposal called for an "AmeriSave" account system that would establish a dollar-for-dollar federal match for the first $1,000 contributed to a personal retirement plan. This initiative would cost taxpayers roughly $7.5 billion each year.
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