Monday, February 13th, 2012 and is filed under Blog
Well, you got to give Obama credit. At least, he was willing to sign his name on such an embarrassing budget. Much of the media coverage will be focused on the topline deficit figures in the budget, but the real issue here is the spending. The deficits are artificially lowered due to increased revenue from rosy projections of economic recovery and massive tax increases. Obama’s budget assumed a 3% GDP growth rate in 2013, while CBO projected just 1% growth. He is projecting 3.4% growth in 2015, 4.1% in 2016, 4.1% in 2017, and 3.9% in 2018. Such growth is certainly plausible, but not under his policies. Yet, despite the “economic growth” and tax increases, he still plans to rack up another $6.7 trillion in debt. So much for using tax hikes on the rich to balance the budget!
Here are some of the major takeaways from the report:
FY 2012 Budget
After three years of the biggest spending binge in American history, Obama plans to increase spending by another $200 billion, from roughly $3.6 trillion to $3.8 trillion. But fear not, he plans to freeze that figure at roughly $3.8 trillion for FY 2013. The problem is that those numbers are always off. Last year, Obama’s budget projected a $1.1 trillion shortfall for FY 2012, now they are projecting a $1.33 trillion deficit. If we are unlucky enough to have him as president next year, our budget will probably hit $4 trillion.
The breakdown of the 2012 spending is as follows: $1.3 trillion for discretionary spending, $2.175 trillion for mandatory spending, and $223 billion on net interest.
10-Year Budget Frame: 2013-2022
Remember last year’s budget – the one that was unanimously defeated in the Senate? Well, it projected $45.95 trillion in spending over 10 years. This one projects almost $47 trillion in spending! So despite all of the phony savings and the cuts to the military, we will actually add over a trillion dollars to Obama’s profligate FY 2012 budget. Additionally, he is projected another $6.68 trillion in debt, on top of the $5.5 trillion he will amass by the end of this fiscal year.
With a budget like this, it’s no wonder Senate Democrats are too scared to release their own version. Let’s see how many of them are willing to vote for $7 trillion more in debt.
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