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.