“UNSUSTAINABLE”

Geithner Comments Confirm that Obama Budget Spends Too Much, Taxes Too Much and Borrows Too Much

Testifying Thursday before the Senate Budget Committee, Treasury Secretary Tim Geithner admitted that President Obama’s budget proposal puts the nation on an “unsustainable” fiscal path.

GEITHNER: “Sir absolutely, it is a[n] excessively high interest burden, it’s unsustainable.”

SEN. JEFF SESSIONS: “Well it’s your plan, for the ten years. I mean that’s the one the President has submitted. That’s the one he’s asked us to vote on…That’s your numbers, off your budget.”

GEITHNER: “Senator, you’re absolutely right, that with the President’s plan, even if Congress were to enact it, and even if Congress were to hold to it…we would still be left with a very large interest burden and unsustainable obligations over time…I completely agree with you.” (Geithner Remarks to Senate Budget Committee, 2/17/2011)

Nancy Pelosi suggested this week that House Democrats whole-heartedly support Obama’s budget:

PELOSI: “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)

While Obama’s treasury secretary appears to be coming to grips with Obama’s out of control spending, Pelosi and Obama’s new spokesman appeared to lose their grip on reality by lavishing praise on the Democrats’ failed $787 billion stimulus:

PELOSI: “House Minority Leader Nancy Pelosi said on the two-year anniversary of President Barack Obama signing the stimulus package into law that she has no regrets about it, even if the spending measure helped fuel a GOP victory in the House this fall.

“‘We’re very, very proud of it,’ she told reporters Thursday. ‘It was definitely worth it.’” (Simmi Aujla, “Pelosi: Stimulus ‘Definitely Worth It,” Politico, 2/17/2011)

JAY CARNEY, WHITE HOUSE PRESS SECRETARY: The stimulus “goals have been met.”  (“WH’s Jay Carney: Stimulus “Goals Have Been Met,” Real Clear Politics, 2/17/2011)

Democrats haven’t listened to what voters told them last November and instead support the Obama budget which continues the excessive spending, taxing and borrowing that defined the last two years of Democrat control.

SPENDING TOO MUCH: Obama’s budget brings federal spending from $3.7 trillion in 2012 to $5.7 trillion in 2021:

TAXING TOO MUCH: How does the President propose to pay for this $2 trillion increase in spending? You guessed it—with a $1.6 trillion increase in taxes:

“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)

BORROWING TOO MUCH: Obama’s budget does nothing to reduce the long-term federal debt. In fact, his budget would see the debt increase from $11.9 trillion in 2012 to nearly $19 trillion in 2021: