By The Numbers: The Largest Spending Cut Since World War II
The spending cut agreement Congress is poised to pass this week is a step forward for the American people and a setback for big government. “The budget agreement that emerged from last week’s negotiations literally changes the direction of federal spending,” Stanford economist John B. Taylor wrote. What’s more, this agreement will help promote private-sector job creation, according to Dr. Taylor: “This first step helps establish the credibility needed for the budget strategy to increase economic growth and encourage private investment.”
A fact sheet on the spending cut agreement is available here, and a myth vs. fact is available here.
By the numbers, here are the key statistics and facts:
CUTTING WASHINGTON SPENDING
- Zero: Amount of spending cuts President Obama called for when the year began.
- Nearly $40 billion: Amount the agreement cuts Washington spending compared to FY 2010 spending levels, making it the largest spending cut since World War II.
- $315 billion: Amount the agreement cuts Washington spending over the next decade, clearing a path for the landmark “Path to Prosperity” budget offered by Chairman Ryan, which cuts trillions more over the next decade.
- $78.5 billion: How much less the federal government will spend this fiscal year compared to what President Obama requested.
- $5 billion: The increase in defense spending Speaker Boehner secured in the final agreement, which includes a gross spending cut of $45 billion.
ELIMINATING WASHINGTON WASTE
- More than 40: Amount of ineffective Department of Education programs terminated by the spending cut agreement. Overall, the agreement eliminates or cuts hundreds of ineffective Washington programs. A full list is available here.
- 16%: Amount by which the Environmental Protection Agency (EPA) will have its budget cut, a clear indication of how the agreement effectively ends the ‘stimulus’ spending binge. This has left liberal economists, including Paul Krugman, “disheartened.”
- $35 billion: Amount the agreement saves over the next 10 years by eliminating the ability to draw two Pell Grant awards at the same time.
CHANGING WASHINGTON’S CULTURE OF SPENDING & BIG GOVERNMENT
- Four: Amount of Washington ‘czars’ eliminated in the spending cut agreement, including the president’s health czar charged with overseeing his government takeover of health care, his auto czar responsible for managing the federal government’s takeover of U.S. auto manufacturers, and his climate change czar tasked with implementing the president’s job-crushing national energy tax. Going forward, the agreement establishes a precedent that Congress can deny the funding for sub positions – effectively challenging their constitutionality.
- Two: Amount of Senate votes and debates the agreement secures on de-funding presidential priorities, including ObamaCare and Planned Parenthood.
- Zero: Amount of earmarks in the spending cut agreement, a stark contrast to two years ago, when President Obama accommodated a Democratic House and Senate and signed into law a massive omnibus spending bill containing roughly 9,000 earmarks.
- Zero: Amount of tax increases in the spending cut agreement, despite Washington Democrats’ best efforts to protect favored programs and discretionary spending by demanding tax increases.
NOTE: A printable .pdf version of this document is available here.