Obama’s Biggest Budget Lies

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So how do we get $4 trillion in savings over ten years? Pure legerdemain. $1.2 trillion in “savings” comes from funds sequestered by the Budget Control Act, passed as a result of the debt ceiling battle last summer. Yet after taking credit for the reductions, the president restores the spending elsewhere in the budget by increasing taxes–and then fails to count the additional spending against the savings! Second, he counts as “saved” money we’ll no longer be spending prosecuting the wars in Iraq and Afghanistan. That’s tantamount to saying that if one decides not to buy a million dollar home next year, one has saved a million dollars. Third, is the so-called “doc fix” that currently calls for a 27 percent reduction in payments for Medicare providers. Congress has kicked this can down the road for years, knowing the most doctors would stop taking Medicare patients as a result. The administration knows that Congress will never enact the cuts, yet it ignores the additional $522 billion in Medicare physician reimbursement costs that accrues without them. Toss in the $1.9 trillion in additional taxes and fees and the Obama administration has “saved” $4 trillion.

Even the New York Times recognizes the gamesmanship, noting that “the indignation that greeted Mr. Obama’s budget on Monday seemed to be amplified by the presidential election, debt crises already rocking Europe and the sheer size of the additional debt envisioned by the president’s plan: $6.7 trillion through 2022” (italic mine). Thus it is no surprise that, despite all of the “savings,” the non-partisan CBO has projected that America’s debt will reach $21.7 trillion by 2022, an increase of more than 50 percent.

That’s if all goes well. Right now our debt is being financed with historically low interest rates the Federal Reserve insists will remain low until 2014. If rates go up, which could happen under a number of scenarios, such as another downgrade, a stock market swoon, or another debt ceiling battle, the national debt level could skyrocket. If interest rates were to return to 2000 levels, America could be saddled with $26 trillion of debt–not in 2022, but five years earlier in 2017.

And for those who blanch at the ever-expanding nature of our federal government, it should be noted that federal spending never falls much below 22 percent of GDP over the next decade, despite a historical average of 18 percent. In fact, if Obama serves two terms, he would be the first president in history to spend 22 percent or more of GDP for eight straight years.

Jeff Sessions (R-AL), the ranking Republican on the Senate Budget Committee, reveals the scope of  a budget he characterizes “one of the most spectacular fiscal cover-ups in American history.” “By the end of his first term President Obama will have overseen four straight deficits in excess of a trillion dollars and the accumulation of $6.4 trillion in new gross debt,” said Sessions in a released statement. “Yet 1.2 million fewer Americans are working today than when he took office. “The vision the president has laid out today leads to a bigger government, a smaller middle class, and a painful debt crisis.”

Yet perhaps the most egregious lie of all with regard to this budget is best debunked by Human Events staff writer John Hayward. “If there’s one argument this fairy-tale budget should resolve, it’s the mythology that deficits can be eliminated through tax increases,” Hayward writes. Obama’s proposal is loaded with tax hikes…but he’s still running trillion-dollar deficits.”

Class warfare, coupled with budgetary gimmicks, may resonate with some Americans, but math can only be manipulated for so long. Moreover, human behavior, especially with respect to tax avoidance, is inherently unpredictable. What is predictable is the reality that we are on the road to fiscal Armageddon–and this budget represents nothing more than the Obama administration’s effort to press down harder on the accelerator.

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  • Rifleman

    Lol, hussein couldn't couldn't even con a single democrat to vote for his budget last year, and he has "no opinion" on whether the senate should pass a budget this year.

  • StephenD

    A few notes:
    Why do we not keep the heat on the Senate for their inaction regarding a Budget?
    Why not give the President what he asks for and point out what we predict will happen…then watch it happen? If he says taxing a million at 30% will do it; give it to him and watch him fail. Take the wind out of his sail so to speak.
    I'm a simple man and think there has got to be a simple solution. After you shut him up, show that "This is the money we have coming in RIGHT NOW and this is the scope of Government we can sustain under that income." Period. Let the Government live within its means like we all must do.

  • alexander

    Most of "them" got "Good Chicago politics schooling":
    — A former Chicago alderman turned political science professor/corruption fighter has found that Chicago is the most corrupt city in the country.
    He cites data from the U.S. Department of Justice to prove his case. And, he says, Illinois is third-most corrupt state in the country.

  • mrbean

    Yassah! Prez Obama beez dah black messihaw. He dun gonna save awl dah black peoples fum dah bue eye debills. Yassah. He gonna take awl dem rich white honkays monies un gib it ath dah black peoples who needs it yassah. Prase dah lawd and prase Pres Obamm

    • mlcblog

      I find this ebonic drill a bit offensive. There must be another way to express what you are saying. I agree, there is some humor here, but the language just makes my skin crawl. We must not gloss over the serious wrongs that have been done to black people.

      • mrbean

        Your skin crawl? Take a bath man or have a shower. Here is something that will go right over your head. If all the 50 million plus black people that exist anywhere in the western hemisphere today, less than 100,000 would exist in the western hemisphere today had slavery not occurred. And… the 50 million blacks that do exist in the western hemisphere today would not exist anywhere at all statistically. The average life expectancy of black people in the USA is 68 years for black men and 74 years for black women – but in Africa it is bewteen 32 years and 38 years of age with exception being South Africa at 44 years of age – thanks only to the whites. Even Mohammed Ali understood this when he went to Zaire when coming back, he said: "Thank god my great great great great grand pappy got put on the boat for America."

        • mlcblog

          I think the use of ebonics by a white man, you mr bean? is offensive in most cases. It loses its humor, its bite, and instead becomes condescending and does not work as humor or sarcasm. I love good sarcasm so you take a bath on the inside, not me.

          Correct me if I am wrong. You are a white guy using this language to try to make your point, or not?

          It's not your material I am having trouble with, it's your choice of delivery. I feel it is insulting to people everywhere, mostly because it comes off as condescending when delivered from your pulpit.

          No one is disagreeing with your point.

    • WilliamJamesWard

      May I remind you that Mr. Obama, Barry to his friends is a mixture of white and
      black, kind of 50/50 and he may be offended at not being identified as a honkey,
      red neck or cracker. Remember keep it fair and balanced……………William

      • mlcblog

        Good one!! Sarcastic, acid, and to the point.

  • WilliamJamesWard

    Financially we are in the tank and what we have will be on a decending scale of
    value in context of a dollar that will be worth less and less. Hard goods are the way
    to go for now, buy what you can with what you have, a $8.00 hammer today will
    be $30.00 down the road, buy in advance and prepare for the worst. Invest in what
    will be very popular, Obama dart boards, a sure money maker…………William