Surely Democrats Can’t Be Serious About Obama’s Budget

February 16, 2011

Democrats Double Down on Spending Too Much, Borrowing Too Much and Taxing Too Much (and Don’t Call Them Shirley)


President Obama on Tuesday doubled down on more spending, more borrowing and more taxing by threatening to veto the House Republican measure to fund the federal government for the rest of the current fiscal year:


“The Obama administration on Tuesday threatened to veto the House GOP’s measure funding the federal government.” (Sam Youngman and Michael O’Brien, “Obama Threatens to Veto House GOP Spending Measure,” The Hill’s Briefing Room blog, 2/15/2011)


Meanwhile, Nancy Pelosi also doubled down on more spending, more borrowing and more taxing by giving Obama’s budget for the next fiscal year the seal of approval from all House Democrats:


“Instead, we support President Obama’s budget to out innovate, out educate and out build the rest of the world.” (Pelosi floor remarks, 2/15/2011)


Obama and Pelosi were probably too busy waving veto pens and rubber-stamping budgets to watch Senate Budget Committee Chairman and fellow Democrat Kent Conrad’s Tuesday hearing on Obama’s budget where he issued an unapologetic rebuke of Obama’s fiscal stewardship:


“Because it cannot be the answer that we’re going to have a debt over a hundred percent of GDP throughout the next decade. That cannot be the answer for this country’s fiscal future.” (Conrad remarks at Senate Budget Committee hearing, 2/15/2011)


Conrad appears to understand what is obvious in the Obama-House Democrat budget: it spends too much, borrows too much and taxes too much.


SPENDING TOO MUCH — Years More of Spending Increases:


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)


BORROWING TOO MUCH – Record Deficits, and Debt So Large it Equals the Size of the Entire U.S. Economy:


“Obama projects that the deficit will hit a record $1.6 trillion this year – which, at nearly 11 percent of the economy, would be the largest since World War II…

“His plan calls for annual deficits – and therefore annual borrowing – to stabilize at about 3 percent of the economy for much of the decade…


“All told, Obama estimates that the nation would have to borrow an additional $7.2 trillion through 2021 under his policies, an improvement from previous projections that exceeded $9 trillion.” (Lori Montgomery, “Obama’s Budget Raises Taxes On Affluent, Businesses, Boosts Spending On Innovation,” The Washington Post, 2/14/2011)


President Obama projects that the gross federal debt will top $15 trillion this year, officially equalling the size of the entire U.S. economy, and will jump to nearly $21 trillion in five years’ time.


“Amid the other staggering numbers in the budget Mr. Obama sent to Congress on Monday, the debt stands out — both because Congress will need to vote to raise the debt limit later this year, and because the numbers are so large.


“Mr. Obama’s budget said 2011 will see the biggest one-year jump in debt in history, or nearly $2 trillion in a single year. And the administration says it will reach $15.476 trillion by Sept. 30, the end of the fiscal year, to reach 102.6 percent of gross domestic product (GDP) — the first time since World War II that dubious figure has been reached.” (Stephen Dinan, “Debt now equals total U.S. economy,” The Washington Times, 2/14/2011)


TAXING TOO MUCH — $1.6 Trillion in New Taxes on Workers, Families and Employers to Pay for More Borrowing and Spending:


“However, Obama also would rely heavily on new taxes, to a degree unacknowledged by administration officials in recent days. His budget request calls for well over $1.6 trillion in fresh revenue over the next decade, much of it through higher taxes on the wealthy and businesses.” (Lori Montgomery, “Obama’s Budget Raises Taxes On Affluent, Businesses, Boosts Spending On Innovation,” The Washington Post, 2/14/2011)


“The 2012 budget proposes $1.1 trillion in savings over the next 10 years. One third of those savings are tax increases, and two thirds are spending cuts, most of which come from the White House’s five-year freeze of non-defense discretionary spending. (Derek Thompson and Garance Franke-Ruta, “What Obama’s 2012 Budget Does—And Doesn’t Do,” The Atlantic, 2/14/2011)