Eric Bolling presented a chart titled "Obama's Checkbook" which purported to show the Obama administration's "new spending," but in fact included a variety of spending that was actually initiated during the Bush administration. Bolling also claimed that Obama has generated "$0" in revenue, despite citing the "new spending" that would occur if health care reform and cap and trade legislation were to pass, even though those programs actually increase revenues and are deficit reductive, according to the Congressional Budget Office (CBO).
From the January 15 broadcast of Fox News' Glenn Beck:
BOLLING: The federal government certainly likes to spend your and my taxpayer dollars. Recently -- check it out -- they spent $700 billion on TARP, $787 billion on stimulus. Hey, by the way, that stimulus package, those are $400,000 per job -- jobs they're creating. $180 billion is either spent or lent to AIG. Don't forget the $115 billion -- these are all B's -- billion to Fannie and Freddie. $83 billion to cars. We're not going to see a dime of this. Don't forget the $1 trillion on health care, cap and trade, et cetera, et cetera. And this one, this one. Can you get a close-up -- take a look at this one. $60 billion as of last night going to the unions to buy health care votes.
All right. Here's the other side of that. The new revenue. Look at that. Zero. $4 trillion -- we're spending zero new revenue.
Bolling includes $700 billion in "Obama's Checkbook" for TARP -- but Bush signed that check
TARP passed under Bush in October 2008. President Bush signed into law the $700 billion Troubled Asset Relief Program on October 3, 2008.
Bolling includes $180 billion in "Obama's Checkbook" for AIG bailout -- but $150 billion authorized during Bush administration
Fed agrees to lend up to $85 billion to AIG in Sept. 2008. On September 16, 2008, the Federal Reserve Board, with the support of the Treasury Department, authorized the Federal Reserve of New York to lend up to $85 billion to the American International Group (AIG), stating that "in current circumstances, a disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth, and materially weaker economic performance."
Fed increases AIG bailout by $37.8 billion in Oct. 2008. The Federal Reserve Board authorized the increase of the Federal Reserve Bank of New York's loan to AIG by $37.8 billion on October 8, 2008.
AIG bailout reaches $150 billion in Nov. 2008. On November 10, 2008, the Federal Reserve and Treasury Department announced a restructuring of AIG's bailout, increasing its total loan package to $150 billion.
Obama administration adds $30 billion to AIG bailout in March 2009. On March 2, 2009, the Treasury Department stated that it would loan up to an additional $30 billion to AIG.
Bolling includes $115 billion in "Obama's Checkbook" for Fannie, Freddie bailout that Bush initiated
Gov't seized Fannie, Freddie in Sept. 2008, pledged up to $200 billion to them. On September 8, 2008, the federal government seized the government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. The Treasury agreed to provide up to $200 billion in capital to the two entities.
Bolling includes $83 billion in "Obama's Checkbook" for GM/Chrysler bailout -- of which Bush allocated $17.4 billion
Bush allocated $17.4 billion to GM and Chrysler in Dec. 2008. On December 19, 2008, President Bush made available $13.4 billion of TARP funds to General Motors and Chrysler and agreed to release an additional $4 billion to G.M. under this plan in February 2009.
Bolling claims "$0" in revenue in "Obama's Checkbook" while including "spending" from deficit-reductive bills
Bolling says Obama spends $1 trillion on health care while providing no new revenues -- but health bills are deficit-reductive. Bolling cites "$1 trillion on health care" among the costs he attributes to "Obama's checkbook," while claiming that his administration has provided no new revenues. But CBO has scored both the House and Senate health care reform bills as deficit-reductive over 10 years.
- CBO: Senate bill yields "a net reduction in federal deficits of $132 billion" over 10 years. From the Congressional Budget Office's (CBO) December 19 cost estimate of the Senate health care reform bill incorporating the manager's amendment:
CBO and JCT estimate that, on balance, the direct spending and revenue effects of enacting the Patient Protection and Affordable Care Act incorporating the manager's amendment would yield a net reduction in federal deficits of $132 billion over the 2010-2019 period.
- CBO estimated House bill would reduce the federal deficit by $109 billion through 2019. CBO found that the health care reform bill that passed the House "would yield a net reduction in federal budget deficits of $109 billion over the 2010-2019 period." CBO also found that in the decade after 2019, "the legislation would slightly reduce federal budget deficits ... relative to those projected under current law-with a total effect during that decade that is in a broad range between zero and one-quarter percent of GDP [gross domestic product]."
Bolling claims "$0" in revenue in "Obama's Checkbook" while citing "spending" of deficit-reductive cap-and-trade bill. Bolling mentioned "cap and trade" among the Obama administration's purported spending while stating that the Obama administration has provided no new revenues. But in a June 26 letter to Rep. Henry Waxman, the CBO wrote that the cap and trade legislation passed by the House, the American Clean Energy and Security Act, would reduce future deficits by roughly $9 billion over ten years:
CBO and the Joint Committee on Taxation (JCT) estimate that enacting the legislation would increase revenues by $873 billion over the 2010-2019 period and would increase direct spending by $864 billion over that 10-year period. In total, CBO and JCT estimate that enacting the legislation would reduce future budget deficits by about $4 billion over the 2010-2014 period and by about $9 billion over the 2010-2019 period (see enclosed table).