GOP: Obama stimulus proposals add $250 billion to deficit

The House Budget Committee estimates that three proposals being floated by the White House to stimulate job growth will increase the deficit by $250 billion over 10 years.

President Obama has set his sights on extending a temporary payroll tax holiday and extending unemployment insurance in order to get more money into the hands of consumers and stimulate demand. He is also backing a proposal to set up a national infrastructure bank to fund more projects as a means of adding construction jobs.

Democrats had hoped to get these items into the debt-ceiling deal enacted this month, and could be looking to win them in a jobs bill compromise this fall with the GOP.

Chairman Paul Ryan’s (R-Wis.) Budget Committee argues against accepting the proposals because they would be costly.

It estimates that the payroll tax deduction would cost $112 billion, the insurance would cost $45 billion and the bank $23 billion over 10 years. Factoring in additional interest payments brings the cost to $250 billion.

“Yesterday, the President gave another speech on the budget. His remarks addressed the recent downgrade by Standard and Poor’s (S&P) of the U.S. Government’s credit rating, and he called for additional reductions in deficits and debt,” the committee release states.