Obama’s Pac-Man Budget
Someone asked me this week if President Obama is completely disconnected from reality and the dire shape the country is in? I replied YES, it appears so. Mr. Obama is failing as a leader. Rather than put aside his hardened, leftist, ideological political beliefs and acting like the President of the United States of America, Obama dug his heels in even more this week, announcing a $3.7 trillion budget. I repeat a $3.7 TRILLION budget with faint attention paid to the country’s ENORMOUS $14 trillion debt.
His obese budget would make a scant puncture in the percentage of spending which accounts for the US gross domestic product. Currently, federal spending is 25% of GDP and under the president’s proposed budget would only decline to 23% of GDP next year. This year the federal government’s deficit will be $1.6 trillion, the highest as a percentage of the economy since World War II. Under Obama’s 2012 budget proposal, the deficit would only drop to $1.1 trillion.
When Clinton left the White House, federal spending was 18.4% of GDP. In 2008, when Bush left office after eight years, federal spending was 20% of GDP.
Instead of taming the budget beast and our debt, Obama has added to it in grand fashion. Obamacare, a stimulus, bank, auto, housing bailouts, and cash for clunkers are a few of Obama’s favorite failed programs which increased the GDP in two short years by twice the amount Bush did in his eight years in office.
This doesn’t look like Winning the Future, as Obama advertises his budget on www.whitehouse.gov. It should be called Losing America’s Future. His proposal isn’t serious; doesn’t address serious cuts in entitlement programs, Medicare, Medicaid and Social Security which like a Pac-Man chews up 40% of federal spending. Nor does the president tackle the $1 trillion, job-killing Obamacare or the debit commission’s recommendations. His cuts would only amount to $1.1 trillion in deficit reductions over 10 years.
During his February 15th press conference, the president claimed “We’re not going to be running up the credit card anymore” but that’s exactly what his budget does.
His whopper of a budget calls for wasteful investments: $53 billion in high speed railroads, which should be privatized, $50million to the EPA, $584 million to environmental research and innovation. And investing $13 billion in the IRS so they can hire 5,100 agents to shakedown American taxpayers for the $300 billion tax gap, which the Wall Street Journal reported as the difference between what Congress thinks Americans owe and what the IRS collects.
Only one third of the president’s proposed cuts would come from freezing domestic discretionary spending, the rest would largely come from his ASSAULT on higher income Americans and businesses. You guessed it, Obama wants increase taxes on the so called rich and businesses by $327 billion over the next decade. Another $321 billion would be reaped from limiting the use of itemized tax deductions those so-called, hardworking “wealthy” Americans use like charitable contributions and mortgage interest.
And of course the Bush tax cuts to expire in 2012 for families earning incomes over $250,000 and $200,000 for individuals. To borrow a refrain from the Tea Party movement, we’re taxed enough already! Study after study shows, when you raise taxes on higher income earners, federal tax revenue goes down because people work less and find ways to reduce their taxable income. End of story.
Another $336 billion would come from more taxing businesses more: including new taxes on banking, petroleum and coal industries, and raising unemployment taxes for businesses. It is completely anti-American, free-markets and anti-competitive to tax people who work harder and longer hours more.
As Orin Hatch observed, “The Obama administration hits almost every sector of our economy with a tax hike-energy taxes, taxes on hiring, higher income takes. That’s not how we get our country moving forward.” No this isn’t how you move the country forward but this is how you drive the country off a very high cliff, which is what this president is doing.
Obama proclaimed in his press conference, “We owe the American people a government that lives within its means.” The big question is when he is going to start practicing what he preaches.