So Obama released his 2012 budget and as expected, it contains more spending:
President Barack Obama’s budget proposal resurrects a series of tax increases that were largely ignored by Congress when Democrats controlled both chambers. Republicans, who now control the House, are signaling they will be even less receptive.
The plan includes tax increases for oil, gas and coal producers, investment managers and U.S.-based multinational corporations. The plan would allow Bush-era tax cuts to expire at the end of 2012 for individuals making more than $200,000 and married couples making more than $250,000. Wealthy taxpayers would have their itemized deductions limited, including deductions for mortgage interest, charitable contributions and state and local taxes.
According to Obama’s numbers (never to be trusted) the deficit will rise to over 1.6 trillion dollars but will fall to 1.2 trillion next year. And if you believe that I have a bridge to sell you.
Here is Dan Mitchell from The Center for Freedom and Prosperity with a short 6 minute documentary about spending restraint and how both Reagan and Clinton were able to accomplish that feat:
Does this mean it is impossible to restrain the growth of spending? Is fiscal responsibility just a fantasy considering the corrupt relationships in Washington between politicians, interest groups, bureaucracies and lobbyists? It’s never easy to get politicians to do the right thing. [this documentary] will show you, with real world examples, that it is possible to curtail the burden of government spending.
After you finish that you will instantly recognize that the Obama budget just worsens the current, unsustainable, spending levels.
Rep. Paul Ryan on FOX News yesterday:
CHRIS WALLACE: …The key feature is a five-year freeze on spending and some considerable tax increases on the wealthy. From what you have heard, what do you think of the president’s plan?
REP. PAUL RYAN, R-WIS.: It sounds like the similar budgets that he has been giving us the last couple of years. Last year, he gave us a $2 trillion tax increase. He got $700 billion of those tax increases enacted, mostly through his healthcare law.
It looks like he is coming back for another, I don’t know, $1.3 trillion in tax increases.
This discretionary freeze is off of an extremely high base. They just blew spending out the gates in the last two years. A 24-percent increase in domestic discretionary spending. When you throw stimulus on top, it was an 84 percent increase, and he wants to freeze for a few years off those high levels. It is less than 1 percent of spending over the next ten years.~~~
Borrowing and spending is not the way to prosperity. Today’s deficits means tomorrow’s tax increases, and that costs jobs. So all this borrowing and spending doesn’t work. Didn’t work on the stimulus, and it will cost us jobs. We need to cut spending so we can get taxes and interest rates low so businesses can plan and hire people.~~~
Look, I am not worried about Washington cutting too much spending too fast. I mean, the kinds of spending cuts we’re talking about just right now are $100 billion out of a $3.7 trillion budget.
So I am not concerned about that. What I’m concerned about is endless borrowing, which is going to compromise our economy not only today but in the future. Because we know the decisions we make right now really dramatically impact us in the future, and the debt is literally getting out of our control.
This budget is just one big shell game. Spend spend and spend some more because of another “crisis” and then come back with a budget that returns to levels still higher than what they started with…THEN tell the nation that they are making spending cuts. And oh by the way, we’re raising taxes too.