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  • Quick Observations on President Obama’s Budget

    Budget Trickery
    The President also employs budget trickery on spending. He first assumes that Iraq spending will continue indefinitely at 2008 levels (which was never going to happen, according to the military’s own Joint Campaign Plan), and then calculates $1.5 trillion in savings against that baseline. If you eliminate that gimmick, President Obama increases spending by nearly $500 billion over ten years – not even counting the $634 billion health care reserve fund

    The budget proposes $1.133 trillion in regular discretionary spending in 2010, and claims that is a 7 percent hike over the 2009 level of $1.062 trillion. But that actual 2009 baseline level – reflected in the budget resolution and appropriations bills — was $1.012 trillion. This makes the actual proposed budget increase 12 percent.

    Other Points

    This is a classic tax-and-spend budget. It increases taxes by $1.3 trillion, raises entitlement spending by $700 billion (including the health care fund), and hikes discretionary spending by a steep 12 percent.

    Given that the budget deficit has already quadrupled in one year, President Obama’s pledge to halve it by 2013 is hardly ambitious. Even with the assumption of peace and prosperity, the 2013 budget deficit of $533 billion would exceed those under President Bush.

    Before the recession, revenues were 18 percent of GDP and spending was 20 percent. After the recession, President Obama would maintain revenues at 19 percent of GDP, and spending at 22 percent. In other words, all new tax revenues would finance new spending, rather than deficit reduction. President Obama’s structural budget deficit would exceed President Bush’s.

    The proposed post-recession spending level of 22 percent of GDP has been exceeded only 8 times in the post-war era. This is hardly setting the stage for fiscal responsibility to deal with the long-term challenge of runaway entitlement spending.

    The $2 trillion in “budget savings” are a mirage. $1 trillion is “saved” by raising taxes, and $1.5 trillion is “saved” from Iraq spending that was never going to continue at previous levels anyway, according to the military’s own Joint Campaign Plan. As stated above, if you eliminate that gimmick, the budget actually increases spending by nearly $500 billion over ten years – not even counting the health care reserve fund.

    President Obama would convert Pell Grants into an entitlement, put them on autopilot, and steeply increase their budget. This comes at a time when analysts are calling on government to take expensive programs off autopilot and place them in the regular budget process.

    This budget fails to significantly reduce the long-term cost of Social Security, Medicare, and Medicaid.

    Posted in Ongoing Priorities [slideshow_deploy]

    43 Responses to Quick Observations on President Obama’s Budget

    1. Barb -mn says:

      Obama – removal of presidential seat IMMEDIATELY. He misrepresents, misleads, distorts all of America! He is a THIEF! Amongst many other choice words.


    2. Anonymous Finch, U.S says:

      This is the best, most concise summary of Obama's budget that I have seen. Thanks for your insight.


    3. Jabe- OR. says:

      Obama, Biden should consider the future of America and stop pretending to care. Capitalistic opertunity dies, so does OUR country. Water does not trickle up niether will our economy. Reward the men and women who provide the jobs with tax hikes? Dont be stupid, your leading the the best.

    4. Paul Schwab says:

      Folks: The people who voted this crew into office in Washington knew what they stood for. Now we are getting exactly what they stand for. They will spend our Nation right into Bankruptcy. God Bless us all. We should pray that they do not do tooooooo much damage within the next two years so the people can wise up and regain majority with conseratives. We must stop spending our way and continue throwing good money after bad.

    5. Lisa Hoffman says:

      The comments here are rhetorical even passed ludicrous without any true or revelant insight. What are you guys kindergarteners?

    6. Barb -mn says:

      Prove us wrong, Lisa. You can't trust his (president of America) words spoken. They're "just words". Everything the man has said needs analysis. Which wastes time and time is money. He's gone back on his word and distorts his own word. Prove us wrong kool-aid drinkers. What do you have to back him up when THAT'S ALL HE SPEAKS IS RHETORIC??

    7. Rebecca, Texas, USA says:

      It seems that this administration doesn't expect that they will have to pay the bill for all their spending. Many of them don't even pay their fair share, aka taxes, until they accept a political appointment. Most of us would either be paying penalties and interest for the rest of our lives or go to jail. Talk about fairness…and it isn't being greedy to talk about it; it's being responsible, something this administration talks a lot about ("a new era of responsibility") but truly isn't. If it were truly "responsible", their numbers would add up and they wouldn't have doubled, tripled…oh,wait, they don't know yet, the federal deficit. Also, the market, run by those who truly have "skin in the game" and are paying their fair share, wouldn't decline every time this administration speaks. I guess they alone decide who deserves the "free lunch" and we ("smelly tourists" and "chattering class" people) have to pay for it…oh, wait, "there's no such thing as a free lunch".

    8. duelles, Santa Fe, N says:

      Why is it feel ill when Obama's budgets are scrutinized and shown to be a misrepresentation of his rhetoric? Do care to much now that I have grandchildren? Or is it that I despise the duplicitous lies and misrepresentations?

      Gee, where is his transparency? And what about ths guy Holder and Salazar as appointees whose disregard for law and the constitution are rivaled only by Obama's.

      No, They can't have my money. Thank g-d I have enough to live off of even in this down market and so have dropped out of the top tax bracket into the lowest – on purpose.

    9. ra,ohio says:

      Rebecca, Texas said it, RIGHT ON.

      Obama has his retirement sealed up, screw you; now go pay your taxes by April 15th, or we will penalize you.


      How can you serve one term in congress and come out a millionaire?

      You wonder why they want to be re-elected ??, their families depend on it. Name 1 poor politician, can you ??????????

    10. Pingback: Quick Observations on President Obama’s Budget « Thoughts Of A Conservative Christian

    11. Marshall Hill MI. says:

      We listen to his WORDS every day!He makes promises

      every day!But when you analyze the truh,the total

      outcome is different! JUST WORDS!

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    14. robert sargent westv says:

      is there a way to see where all this money is going.we are footing the bill for this spending.i would like a break down.who is spending it and why.maybe i will feel better if i get some true imformation.

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    23. aaron, FL says:

      This is so inaccurate I don't even know where to begin…

      I'll just say this…MOST OF THE STIMULUS MONEY WILL NOT BE SPENT UNTIL EARLY 2010! And until that money is spent…its not considered as such.

      You could go to
      to see for yourself, but I doubt you will…the right will continue to believe everything they hear from the right wing hacks, and the left will do the same with their hacks!

      I guess they will spin it how they like…whether true or not…how sad!

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    41. bill says:

      Who started the current term of out of over spending? Carter, but both parties are guility of over spending from Carter to Obama. Reagan said, who was guarding the hen house during Carters admin, but Reagan was 10 times worse. A lot of this mess was brought on by deregulation, remember the savings and loan scandal, deregulation caused it. What party wanted and got deregulation, if I recall it was the republicians. Reagan said, the problem with government is government its self. I agree, the problem with the government was Reagan, he's the one who wanted deregulation and got it, guess what the crooks took over some of the savings and loans and robbed them, true story, read it.

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    43. Alex, Atlanta says:

      What I find shocking is the panic that right leaning people are associating with Obama's fiscal policy. I don't understand how you forget so easily the palpable global economic mess that his administration inherited? Was he expected to "stay the course?". The weeks before he took office, Obama was ironing out the largest fiscal stimulus package since the great depression, at the urging of the Bush administration. I can hardly imagine what Bush was doing the weeks before his inauguration. Obama may be a lot of things, he may even disappoint in the long run, but the fear and shock you people associate with him is really worrisome.

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