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Buying Big Government: What the Obama Budget Is Costing You ... This Time

Posted By Rory Cooper On March 18, 2009 @ 7:28 am In Ongoing Priorities | Comments Disabled

Hitting the Federal ATM, Again

  • Apparently, It Does Grow on Trees: After an $800 billion stimulus bill, the President’s budget increases spending by $1 trillion over 10 years, includes an additional $250 billion placeholder for another bailout, and calls for a pay-as-you-go (PAYGO) law while astonishingly violating that rule by $3.4 trillion [1].
  • More Deficits and More Debt: The President’s budget leaves permanent deficits averaging $600 billion [1] even after the economy recovers and doubles the publicly held national debt to over $15 trillion ($12.5 trillion after inflation).
  • To Pay for Historic Government Expansion: The 25% spending increase in the President’s budget represents the largest non-war government expansion since the New Deal. Domestic discretionary spending (including the stimulus funds) has been hiked by nearly 80% over 2008 levels [1].
  • When Is It Enough? After multiple bailouts, an $800 billion stimulus bill, an omnibus spending bill, major Medicare expansion, SCHIP expansion, and now a historic tax and spend budget, all in less than eight weeks, when is it enough?

Doubling Down, Again

  • Bush v. Obama: Bush expanded the federal budget by a historic $700 billion. Obama would add another $1 trillion [1]. Bush increased federal education spending 58% faster than inflation. Obama would double it.
  • Bush v. Obama, Round 2: Bush became the first President to spend 3% of GDP on federal antipoverty programs. Obama has already increased it to 20% [1].
  • Bush v. Obama, Round 3: Bush reduced taxes by nearly $2 trillion. Even after Obama’s tax cuts, he still will raise them by a total of $1.4 trillion.
  • Bush v. Obama, Round 4: In 2007, before the recession, Washington spent $24,172 per household. Obama would increase that to $32,463 per household.
  • Bush v. Obama Scorecard: While President Obama has framed his budget as a break from “failed policies” of the Bush Administration, it is in fact a doubling down on borrowing, spending, and bailing out.

More Taxes, Again

  • Spreading the Wealth: The President’s budget raises taxes by $1 trillion over the next decade on those earning over $250,000. This means raising taxes for 3.2 million taxpayers [1] by an average of $300,000 during that time.
  • Yes, Even the “95%” Are Taxed: Through his proposed cap-and-trade system, the President would be raising taxes on all Americans while crippling the manufacturing sector and destroying jobs. Warren Buffet called it a “regressive tax [2],” correctly identifying that it will be borne by all American energy consumers.

That ‘70s Show

  • Back to the Future: President Obama’s budget returns us to the economic policies starting in 1952 and culminating with Jimmy Carter’s high taxes, high spending, and Keynesian economics [1]—which resulted in high recession rates, high inflation, high interest rates, and a stagnant stock market.
  • More Carter Than Carter? Lawmakers should reject this budget and hold the President to his pledge of fiscal responsibility.

Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2009/03/18/buying-big-government-what-the-obama-budget-will-cost-youagain/

URLs in this post:

[1] violating that rule by $3.4 trillion: http://www.heritage.org/Research/Budget/bg2249.cfm

[2] regressive tax: http://greeninc.blogs.nytimes.com/2009/03/09/buffett-cap-and-trade-is-a-regressive-tax/

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