Monday, February 14, 2011

Obama's Budget Sleight Of Hand, With Tax Increases Proposed, Doesn't Cut Deficit. It Grows!

The Obama Regime released their proposed 2012 budget that is basically a game of fuzzy math (Yahoo News - AP)
Putting on the brakes after two years of big spending increases, President Barack Obama unveiled a $3.7 trillion budget plan Monday that would freeze or reduce some safety-net programs for the nation's poor but turn aside Republican demands for more drastic cuts to shrink the government to where it was before he took office.

Obama would trade cuts to some domestic programs to pay for increases in education, infrastructure and research as necessary investments that he judges to be important to the country's competitiveness in a global economy.
So these "cuts" are really just a sleight of hand trick of moving money from one pot to another, with the appearance of "I cut the budget," just like he claimed to cut taxes when he really didn't, and he's calling for tax increases.
But he also raises taxes by $1.6 trillion over the coming decade, much of it from allowing recently renewed tax cuts for families making more than $250,000 a year to expire in two years — he signed a two-year extension of them into law just two months ago — and from curbing their tax deductions for charitable contributions, mortgage interest and state and local tax payments.

Despite his spending cuts and tax increases, the government's total debt would still mushroom from $14.2 trillion now to almost $21 trillion by 2016. Republicans assailed his blueprint for failing to take the lead on the nation's daunting fiscal problems.
Sarah Palin weighed in on Facebook.
Today the White House finally produced its proposal for the 2012 budget. Beware of the left’s attempt to sell this as “getting tough on the deficit,” because as an analysis from Americans for Tax Reform shows, the White House’s plans are more about raising taxes and growing more government than reducing budget shortfalls.

The fine print reveals a White House proposal to increase taxes by at least $1.5 trillion over the next decade. If you want to know how minuscule their proposed $775 million-a-year budget “cuts” really are, please look at this chart. The proposed cuts are so insignificant – less than 1/10 of 1% of this year’s $1.65 trillion budget deficit – that they are essentially invisible on the pie chart. That speaks volumes about today’s budget.

UPDATE: As J.D. Foster of the Heritage Foundation points out: “...the President proposes a budget that keeps the federal government on a thoroughly irresponsible and unsustainable course.” Please read the Heritage Foundation article and understand the $775 million in proposed cuts noted above are what the White House’s budget director Jacob Lew identified as reflecting what they perceive as some “tough calls.” Yet, as noted, they are a drop in the bucket; and the White House’s total proposed cuts for this year are still not at all enough to make us solvent.

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