Obama’s big-spending 2013 budget destroys the millionaire fantasy
President Obama submitted his budget proposal for fiscal year 2013, and it contains some eye-popping numbers. Despite long-standing promises to reduce the deficit – in fact, he has explicitly promised to cut it in half before the end of his first term – he calls for a whopping $1.3 trillion deficit next year, and keeps them over a trillion dollars for several years to come. At the end of the ten-year period projected in Obama’s budget, we would be the proud owners of a $25.9 trillion national debt. His government would spend $3.8 trillion next year, more than ever before.
Obama’s budget jacks up taxes and fees by $1.9 trillion, including higher taxes on dividend income, which would hit 44.6 percent with the ObamaCare surtax. Capital gains taxes would skyrocket 10 percent. Taxes on individuals, small businesses, and corporations would rise. This is a growth-killing budget, pure and simple… and yet, the President absurdly predicts GDP growth of 3 and 4 percent for years to come. The actual forecast from the Congressional Budget Office for next year was 1.1 percent, and that was before the President proposed dropping another few trillion in taxes on this weak economy. Barring a miraculous advance in new technology or newly-discovered resources – which Barack Obama would not allow American industry to develop anyway – most forecasters doubt sustained growth above 2 percent is feasible under Obamanomics.
Couple more realistic GDP predictions with the absolute certainty that Obama’s tax hikes will not produce nearly as much revenue as he promises – they never do – and the actual deficits that would result, if America was so foolish as to implement the Obama budget, would be far higher. Twice as high isn’t out of the question.
On the other hand, a mere 16 percent of the “deficit reduction” claimed in Obama’s budget comes from spending cuts. Even much of that comes from the dishonest trick of claiming the money “saved” from concluding military operations in Iraq and Afghanistan as “spending cuts.” Obama doesn’t even apply all of that money to deficit reduction.
RNC chairman Reince Preibus described this budget as “a political bet with our children’s future.” It’s a campaign document, not an effort at governance. It’s packed full of junk that doesn’t make any sense, for the sole purpose of demonizing anyone who opposes any of it.
Appearing in a conference call with Preibus, Virginia Governor Bob McDonnell – who turned around a ghastly budget deficit without tax increases – pointed out that preparing a balanced budget is something “families and business have to do every day. They don’t have an unlimited credit line. They’ve got to make tough choices.”
Obama’s embarrassing budget antics are the opposite of making tough choices. Operating within the budgetary parameters of a family or business would limit the government’s power too much for his taste. A family can’t indefinitely spend 40 percent more than it takes in. A business can’t simply command its customers to pay 20 percent more, because it really wants to spend that money. A corporation can’t accept spending 10 percent or more of its revenue to finance the debt it has already incurred, with no plans to do anything but increase that debt load.
But wild spending far in excess of revenue, as a permanent feature of life, is an expression of the will to statist power. It amounts to demanding more power than the State can actually afford, and deeply misleading the public about who will need to pay for it. Does anyone seriously think the United States could sustain a $25.9 trillion national debt?
If there’s one argument this fairy-tale budget should resolve, it’s the mythology that deficits can be eliminated through tax increases. Obama’s proposal is loaded with tax hikes, including the much-discussed “Buffett Rule” for a super Alternative Minimum Tax on millionaires, and the end of the hated “Bush tax cuts for the rich”… but he’s still running trillion-dollar deficits. He postulates GDP growth that can never be sustained under a high-tax, regulation-heavy government, and still can’t get close to solvency. Given the chance to envision any budget environment he wants, Obama has squeezed out four trillion-dollar deficits in a row.
The next time anyone suggests the only thing standing between the U.S. government and a balanced budget is the “greed” of “millionaires” who refuse to “pay their fair share,” tell them Barack Obama clearly disagrees, and offer this budget as proof.