Filed under: Capitalism, Domestic Policy, Economy, National Security, Regulation, Taxes | Tags: Dead on Arrival, Fantasy and Unicorns, The President's Budget Request
The President’s budget — released a month late, in the midst of a faltering, dismal economy, and amid rising global threats — and, he claims, in the midst of “an era of austerity”— he actually proposes a budget that would sharply cut defense spending and impose $1.8 trillion in tax hikes. Bwa-ha-ha-ha. This is a budget request, and it demonstrates that Obama is not much connected to reality, which is worrisome.
His budget rests on the assumption that real GDP growth this year will be 3.1%/ The Congressional Budget Office suggests 2.7% and the consensus in the financial sector is for 2.5%.
He expects us to believe that — all evidence to the contrary — he can add $100 billion in spending on top of the “baseline” this year and next, but then he’ll get serious about spending restraint as he prepares to leave office.
The federal government is more than $17 trillion in debt. Obama’s budget proposal does nothing, nothing at all, to reduce that debt. Instead it adds hundreds of billions of dollars to it every year. The president’s rosiest economic projections say the budget would add $8.3 billion to the national debt, otherwise more. Obama says:
This budget adheres to the spending principles members of both Houses of Congress have already agreed to.
President Obama signed the Bipartisan Budget Act of 2013 into law on December 26,2013, a little more than two months ago. His budget breaks the spending caps by $56 billion in 2015, and by $791 billion over the ten years of the budget proposal. His budget will increase total spending by 63 percent from today’s levels over the next decade.
President Obama’s budget never balances — ever!
He wants to plow more money into repairing crumbling roads and bridges and into rail projects. He really doesn’t change his mind, does he.
He claims that his budget “ensures we maintain read, modern and capable defense forces to address any threats we might face, including threats from terrorism and cyberattacks.”Yet the only part of the government that sees real spending cuts is defense, which he wants to cut back to pre-World War II levels. Defense cuts of $1.14 trillion over the next decade account for more than half of his proposed $2.2 trillion in deficit reduction. I think we’re in “shovel-ready job territory” here. Roughly half of the new taxes go to new spending rather than deficit reduction.
President Obama’s plan nearly quadruples interest costs — the fastest growing item in the budget. Interest this year will be $223 billion but would rise to $812 billion in ten years.
I’m pretty much done with these promises of, although we’re not reducing the debt by much this time, but —in the future it will be different. Uh huh.
Did you know that Barbara Boxer (D-CA) was an Economics major?
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