Obama Budget by the Numbers: Spends Too Much
Democrats Double Down on Spending, Failing to Create Environment for Job Creation
President Obama said in his most recent State of the Union Address that “[w]e need to take responsibility for our deficit”:
“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.’“ (“Obama’s Second State Of The Union,” The New York Times, 1/25/2011)
However, Obama’s budget released today reveals that he is apparently more interested in continuing to spend than he is in reducing the deficit:
Obama’s budget includes plans for eight years of increased spending:
“After dipping 2% in fiscal 2012, federal spending increases at a compound rate of 5.2% for the next eight years, from 2013 to 2020. Bottom line: The administration’s claims that it’s tackling the budget deficit depend entirely on projected tax increases that probably won’t happen, notably the return of the Bush tax cuts for high-earners after 2014.” (Shawn Tully, “What Cuts? Obama’s Budget Only Boosts Spending,” Fortune, 2/14/2011)
Obama’s budget includes tricks and gimmickry that funnels money from so-called savings into more spending:
“Overall, Mr. Obama’s budget reflects his cut-and-invest agenda: He proposes to slash spending in some domestic programs, both to reduce deficits and to make room for increased spending on education, infrastructure, clean energy, innovation and research to promote long-term economic growth and global competitiveness.” (Jackie Calmers, “Obama Budget Reflects A Cut-And-Invest Agenda,” The New York Times, 2/14/2011)
Obama’s budget breaks a promise he made only a year ago to balance part of the budget by 2015:
“The White House would fail to meet a promise made a year ago to balance the budget outside of interest payments on the federal debt by 2015, which would mean a deficit of 3% of GDP.”(Jonathan Weisman And Naftali Bendavid, “Budget Forecasts Bigger 2011 Deficit,” The Wall Street Journal, 2/14/2011)
Obama’s budget falls trillions short of the deficit reduction goals issued by Obama’s own deficit commission:
“Mr. Obama’s plan to reduce the deficit by $1.1 trillion over 10 years is short of the $4 trillion in reductions the White House’s bipartisan deficit-reduction commission proposed in December.” (Jonathan Weisman And Naftali Bendavid, “Budget Forecasts Bigger 2011 Deficit,” The Wall Street Journal, 2/14/2011)
DEMOCRATS DOUBLE DOWN
Democrats in Congress are doubling-down on spending too much by lavishing praise on Obama’s budget:
“Democrats praised Obama for taking steps to stabilize the economy and put the nation on a stronger fiscal path. At the same time, they signaled they aren’t on board with all his proposed program cuts.
“The plan ‘keeps in mind that we need to make smart choices that will create more jobs, lift up middle-class families and keep our economy growing,’ said Representative Chris Van Hollen of Maryland, the top Democrat on the House Budget Committee. He called the proposal a ‘tough-love budget’ that ‘doesn’t do violence’ to priorities like education and medical research.
“Senate Majority Leader Harry Reid, a Nevada Democrat, said Obama’s plan was a ‘serious attempt’ to address the deficit while Republicans are seeking to ‘slash the programs that keep us safe and make us competitive.’” (Laura Litvan, “Republicans in Congress Dismiss Obama Budget, Seek Deeper Cuts,” Bloomberg, 2/14/2011)