Obama has cranked up the printing press and delivered his nominee for the Pulitzer Prize in fiction — his 2013 budget.
It has no more chance of passing than his 2012 budget, which was defeated in the Senate by a vote of 0-97. It calls for a deficit of more than $1.3 trillion, precisely the deficit amount he pledged to cut in half in February 2009 by cutting spending. Now he proposes to spend even more and perhaps reduce the deficit some time in the future by raising taxes on the “rich.”
For a president who is getting a bit gray in the temples, it might be called the Grecian Formula.
The Wall Street Journal points out in an editorial, “National debt held by the public — the kind you have to pay back — will hit 74.2% this year and keep rising to 77.4% next year. …
“Economists believe that when debt to GDP reaches 90% or so, the economic damage begins to rise. And this doesn’t include the debt that future taxpayers owe current and future retirees through the IOUs in the Social Security ‘trust fund.'”
You know, the trust fund, the one the Democrats are gutting by $100 billion by extending that wealth generating payroll tax cut amounting to $20 a week on average, but more for those rich people. Don’t worry, those grandchildren Obama is so concerned about will pay tomorrow for our retirees’ checks today.
As for that promise in 2009 to cut the deficit in half, the Review-Journal editorial noted, “Only five years ago, in fiscal 2007, the federal budget totaled $2.73 trillion, and the budget deficit was a paltry $161 billion, just 1.2 percent of GDP. Under the president’s 2013 budget, federal spending will have increased 40 percent in just six years.”
As for the fiction, Michael Tanner at the Cato Institute points out some of the outright falsity in the budget.
The president claims that his budget proposal reduces debt by $4 trillion over the next 10 years, combining $2.4 trillion in spending cuts with $1.6 trillion in tax hikes. Almost none of that is true.
Let’s start with the idea that the president’s budget would reduce the debt,” Tanner writes. “That is true only using Washington math, under which a smaller increase is actually a decrease. In reality, the president’s budget adds $6.7 trillion to the national debt over the next 10 years, bringing it to nearly $25.5 trillion by 2022. That would be more than 100 percent of our GDP.”
Tanner says the Obama budget increases federal spending from $3.8 trillion in 2013 to $5.82 trillion in 2022. That’s is not how most people cut spending.