Obama’s MultiTrillion-Dollar Budget would deepen record pool of red ink, urge jobless help
Obama urged Congress to quickly approve a record $3.8 trillion budget that would boost the deficit beyond any in the nation’s history.
If Congress goes along with Obama’s election-year plan, the nation would end the year with this year’s pool of government red ink deepening to $1.56 trillion under the “administration’s accounting.”
The budget paints a remarkably dire picture of a federal government that will have to borrow one-third of what it spends next year as it runs a deficit that still would total some $1.3 trillion.
Obama is acutely aware that persistent joblessness is the issue most likely to spell political trouble for Democrats in this year’s midterm elections — and perhaps for his own re-election chances in 2012.
Obama’s raising taxes by nearly $1 trillion higher-income people – the very people who employ the majority of American workers.
What about spending cuts?
“They’re not willing to do big ideas. They’re doing ideas that create perception but don’t do anything big,” said New Hampshire Sen. Judd Gregg, senior Republican on the Budget Committee. “The spending freeze for example. You’re talking what, $10 billion on a $1.6 trillion deficit?”
Democrats, facing the prospect of major losses in November, are likely to join Republicans in balking at many of Obama’s proposals. Moderate Democrats already are wary of another debt-financed economic stimulus program and may also choke on many of the recommended tax increases and spending cuts.
Proposing a partial spending freeze, tax increases for wealthier people and a new fee on banks, Obama’s proposal still amounts to just tinkering at the edges of the larger budget problem.
So while Obama pledged in his campaign to reduce deficits, out of the other side of his mouth he said that continuing them in the short term is necessary to help lower unemployment.
At the same time, Obama wants to hand off to a commission decisions on the tough steps needed to reduce deficits and slow the growth in the federal debt to levels economists deem prudent. Of course, the panel’s recommendations wouldn’t be due until after the midterm election.
“We simply cannot continue to spend as if deficits don’t have consequences, as if waste doesn’t matter, as if the hard-earned tax dollars of the American people can be treated like Monopoly money, as if we can ignore this challenge for another generation,” Obama said.
Can you believe what comes out of his mouth? Obama now owns the deficit as a political issue after passing last year’s $862 billion economic stimulus bill and other major spending legislation. Obama and his comrades in Congress are the ones treating hard-earned tax dollars of the American people like Monopoly money! They have gone overboard with spending on pet Democratic programs.
Balancing the budget or producing surpluses of the kind from 1998 through 2001 is now seen as all but impossible.
Members of Congress immediately labeled it as a toxic mix of higher taxes, big spending and debt, saying it would still produce deficits totaling $8.5 trillion over the coming decade.