Obama’s Deficit Doubletalk Continues in Latest Budget

February 14, 2011

Democrats Continue to Spend Too Much, Borrow Too Much and Tax Too Much


President Obama promised the American people that he would finally tackle the deficit in his latest budget for Fiscal Year (FY) 2012. But instead of turning from his big spending agenda of the past two years, Obama’s budget proposal announced today adds $1.1 trillion to the deficit in FY 2012, offering more spending, more borrowing and higher taxes.


“President Barack Obama is sending Congress a $3.73 trillion spending blueprint that pledges $1.1 trillion in deficit savings over the next decade through spending cuts and tax increases.


“Obama’s new budget projects that the deficit for the current year will surge to an all-time high of $1.65 trillion. That reflects a sizable tax-cut agreement reached with Republicans in December. For 2012, the administration sees the imbalance declining to $1.1 trillion, giving the country a record four straight years of $1 trillion-plus deficits.” (Martin Crutsinger, “Obama Unveils $3.73 Trillion Budget for 2012,” Associated Press, 2/14/2011)


The Democratic chairman of Obama’s fiscal commission said Obama’s budget is “nowhere near” where it needs to be to solve America’s fiscal crisis:


“Erskine Bowles, the Democratic chairman of the fiscal commission, said the White House budget request goes ‘nowhere near where they will have to go to resolve our fiscal nightmare.’” (Lori Montgomery, “Obama Spending Plan Criticized for Avoiding Deficit Commission’s Major Proposals,” The Washington Post, 2/14/2011)


Obama’s latest spending plan is just the latest chapter in the tragic story of his reckless spending. In 2009, Obama’s FY 2010 budget increased spending by nearly $100 billion and raised taxes by nearly $1 trillion.


“The administration estimates that the deficit for fiscal year 2009 will reach $1.75 trillion, or 12.3% of U.S. gross domestic product. That’s a record in dollar termsand is the highest as a share of GDP since World War II….


“The White House is calling for $3.6 trillion in spending in 2010, when it estimates that $2.4 trillion in revenue will be collected..” (Jeanne Sahadi, “Obama Unveils First Budget Plan,” CNN, 2/26/2009).


“President Obama’s budget proposes $989 billion in new taxes over the course of the next 10 years, starting fiscal year 2011, most of which are tax increases on individuals.” (Jake Tapper, “Obama’s Budget: Almost $1 Trillion in New Taxes Over Next 10 Yrs, Starting in 2011,” ABC News, 2/26/2009)


Then in 2010, Obama’s budget proposal for FY 2011 went even further and increased spending by $250 billion and raised taxes by $2 trillion. 


“President Barack Obama’s $3.8 trillion budget for the coming fiscal year raises taxes on businesses and upper-income households by $2 trillion over 10 years and cuts spending on programs with considerable political support, but will still leave the nation with $8.5 trillion in added debt over the next decade.” (Jonathan Weisman, “Wealthy Face Tax Increase,” The Wall Street Journal, 1/31/2010) 


That year, Nancy Pelosi and House Democrats failed to do their job by refusing to pass a budget for FY 2011, preferring instead to spend recklessly with no blueprint or restraint.


House Democrats will not pass a budget blueprint in 2010, Majority Leader Steny Hoyer (D-Md.) will confirm in a speech on Tuesday.”


“The House has never failed to pass an annual budget resolution since the current budget rules were put into place in 1974.” (Jared Allen, “Dems won’t pass budget in 2010,” The Hill, 6/21/2010)


Obama’s and Nancy Pelosi’s records of spending more, borrowing more and taxing more makes their recent rhetoric on deficit reduction almost laughable. When will House Democrats finally call for their leaders to put their budget where their mouth is? 


OBAMA: “We need to take responsibility for our deficit and reform our government. That’s how our people will prosper. That’s how we’ll win the future. (Applause.) And tonight, I’d like to talk about how we get there.’“ (“Obama’s Second State of the Union,” The New York Times, 1/25/2011)


PELOSI: “Democrats will strive to work with the new Republican majority to create jobs, strengthen the middle class and reduce the deficit.” (Nancy Pelosi, “After ‘Productive’ Congress, Fight For Jobs Goes On,” USA Today, 11/9/2010)