During his presidential campaign, President Barack Obama promised the American people a "net spending cut." Instead, he signed a "stimulus" bill that spends $800 billion. The proposed a budget would:
- Increase spending by $1 trillion.
- $250 billion for another financial bailout.
- Likely lead to a 12 percent increase in discretionary spending.
- Permanently expand the federal government by nearly 3 percent of gross domestic product (GDP).
- Raise taxes on all Americans by $1.4 trillion.
- Call for a pay-as-you-go (PAYGO) law despite offering a budget that would violate it by $3.4 trillion.
- Leave permanent deficits averaging $600 billion even after the economy recovers.
- Double the publicly held national debt to over $15 trillion.
It assumes that the temporary stimulus spending provisions will be allowed to expire and that the $634 billion down payment on universal health care will not be expanded.
It proposes destructive income tax increases and a new cap-and-trade energy tax that could devastate the manufacturing sector. Yet, somehow, the budget assumes much faster economic growth than forecast by the Congressional Budget Office (CBO) and the Blue Chip Consensus.
Overall, the President's budget represents a sharp break from the policies that created the most prosperous 25-year period in American economic history.* Instead, it puts politicians in charge of an increasing portion of the economy. Congress should discard this tax-and-spend budget and follow Reagan's successful 80's-recovery model.
[*And that's part of the problem; 25 years is also generally considered to be 'a generation'. I.e., we've a new crop of young adults who don't know (and weren't taught) how disastrous socialistic policies have proven to be throughout history, and weren't around during the 70's - so they simple don't know any better (but can still vote).]
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