And We Thought The Budget Could Not Get More Bloated

This is completely mind boggling to me!  Did I step off of planet Earth for a minute and just imagine that the President has been characterizing himself as a deficit hawk?  The President has spent the better part of his presidency pointing back at President Bush and blaming him squarely for our financial woes and the huge deficit that met Obama at the door.  Pssst…Mr President, I think you missed the fact that Democrats controlled Congress for the last two years of Bush’s presidency and I am pretty sure that document you threw out in the trash bin behind the White House gives the spending power to Congress.  And now the President has presented his supposedly “spending freeze” budget to Congress and it comes in at a whopping $3.8 trillion dollars!

With a 2011 budget this large, one just knows there are little goodies stuffed into this thing.  Let’s see, the President thinks he is going to tax the wealthy more to help pay for his spending.  During the State of the Union, he bragged about his tax cuts and promised more for small business.  But many small businesses will fall under this new tax bracket of making over $250,000 annually.  The President promised to cut capital gains taxes for small businesses.  Unfortunately, that means nothing since the Bush tax cuts will go away at the same time, making this a complete wash.  The rich will also be limited in their itemized deductions.  Sure sounds “fair” to me.

There is an additional $100 billion in spending for job creation.  So by the time we get to 2011, this will be Porkulus Bill number 75?  This budget promises to add to the deficit.  So much for pointing back at Bush.  This year, the deficit will be $1.6 trillion and last year was $1.4 trillion and 2011 is projected to be $1.3 trillion.  That is if he can fund the budget.  I already pointed out he wants to soak the rich, which will not work, but he has another plan as well.  Despite the fact that Crap & Tax appears to be all but dead in the Senate, the President has funds raised from carbon credits in his budget.  That’s right, either the President knows something we don’t know – possibly an Executive Order to implement Crap & Tax? – or he is trying to pull a fast one.

Mark Tapscott, writing for the Washington Examiner said, “Whether it’s the $650 billion projected by the Senate bill or the $873 billion of the House bill, it appears highly unlikely, to put it charitably, that either measure will make it to Obama’s desk with the cap-and-trade program intact. That means Obama will be counting phantom revenue as part of his next federal budget proposal.  But then Obama’s $787 billion economic stimulus program has produced two million phantom jobs located in phantom zip codes in phantom congressional districts, so perhaps nobody should be surprised to see phantom revenues in a White House budget proposal.”

Despite the fact that projections show the deficit continuing to lower each year until 2020 when the deficit will be around $800 billion dollars, reality reveals something else that has me questioning if our economy can truly recover with Progressives at the helm. Estimates have the publicly held debt doubling to $18.5 trillion by 2020.  And the interest on our debt will quadruple to more than $800 billion by 2020.

The budget also contains the Tenth Amendment defying guarantee to spend $25 billion to provide state governments with six additional months of help paying their Medicaid bills.

We have watched politicians on both sides of the aisle spend our money irresponsibly and every year the deficit continues to hold above the trillion dollar mark and the national debt balloons.  I have no doubt that if John McCain were the president instead, that the budget would not be much better.  It is up to us on the grassroots level to stop this wasting of our hard earned dollars.

2 responses to “And We Thought The Budget Could Not Get More Bloated

  1. We could sit here all day and argue about what we need to spend money on and what we do not need to spend money on…well…maybe not you and I but people in general anyway. But whenever the conversation starts about cutting spending, there is always ONE person, or in this case, one Congressman, that stands up and screams about it. They want to cut this but not cut that, cut two other things but not these three right here that could really save money. And do not even get me started on these “entitlements”! The people go crazy when you cut something that supposedly is a right of all who live in this country (or sneak across the border, whichever).

    We need people in office that will make the tough decisions even though it may cost them a few votes down the line. We do not have that and I do not see that in our very near future. These are career politicians, and they do whatever it takes to get them the votes they need.

    Our Congress will never be able to sustain the budget for 2011 unless they not only tax the rich and small business, but tax everyone else as well. They will allow the tax rates to go back to where they were before Bush, and Obama will say he did not raise the taxes on anyone, but in reality he and the Congress will have pulled a stealth move on the American people. They will not realize it until it is too late. My hope is that the people are REALLY waking up this time, and they will spend a little more time looking into what Congress does with their money. (Or the money the Chinese has let us borrow, whichever)

  2. The deficit is off the scale when measured by historical peaks (94% of GDP this year, with Greece at 125%; we are 4th highest among 50 countries across Europe). This, plus the growing share of debt owned by China, makes for a toxic combination. Some interesting graphs here:
    https://sasoc.wordpress.com

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