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  • Obama Budget Adds $80,000 per Household to National Debt

    The Congressional Budget Office (CBO) has completed its initial review of President Barack Obama’s budget request and found that the White House significantly understated the cost of and red ink in its budget.

    While President Obama claimed his budget would produce $7.2 trillion in deficits (a staggering figure) over the next decade, CBO calculated $9.5 trillion in deficits. That is more debt than the federal government accumulated from 1789–2010 combined. Overall, CBO estimates that the national debt held by the public—40 percent of GDP before the recession—would soar past 87 percent of GDP in a decade.

    President Obama harshly criticized his predecessor for overseeing $300 billion budget deficits even while financing a war. Yet the President’s budget would run annual deficits reaching $1.2 trillion by 2021— and that assumes peace and prosperity. Annual deficits would never fall below $748 billion.

    These large deficits will persist because the President’s steep tax hikes cannot keep up with his runaway spending. Relative to the historical averages (which were also pre-recession levels), President Obama would raise taxes by 1.3 percent of GDP, yet increase spending by 4 percent of GDP. The main drivers of runaway spending – surging Social Security, Medicare, and Medicaid costs – would not be reformed at all. Accordingly, the annual cost of interest on the national debt would quadruple.

    As expected, the CBO rejected the numerous gimmicks in President Obama’s budget. His budget assumed large revenue increases from an economic boom that few economists foresee, as well as $643 billion in deficit reduction from transportation and health policies that the White House never actually proposed. By rejecting these gimmicks, CBO exposed the budget’s larger deficits.

    Under President Obama’s budget proposal, taxpayers would see large tax increases, bigger government, and slower economic growth. The President who declared that “I didn’t come here to pass our problems on to the next President or the next generation—I’m here to solve them,” would, over the next decade, drop an additional $80,000 per household in debt onto the laps of our children and grandchildren. This is an irresponsible budget proposal by any standard.

    Posted in Economics [slideshow_deploy]

    26 Responses to Obama Budget Adds $80,000 per Household to National Debt

    1. Kevin H, college par says:

      It appears that program spending has actually be cut compared to baseline. Brian, isn't it true the biggest factor in the debt is the extension of the tax cuts in December of last year to cost of 4trillion?

      Amazing that taxes have never been so low, deficits have nev er been so high, and the far right never talks about taxes – when we spend trillions on 'tax expenditures'. Let's end all tax expenditures!!!

    2. Pingback: Obama Budget Adds $80,000 per Household to National Debt | Big Propaganda

    3. Pingback: Defense of Güns Obama Budget Adds $80,000 per Household to National Debt » Defense of Güns

    4. George Colgrove, VA says:

      ". . . the President’s budget would run annual deficits reaching $1.2 trillion by 2021— and that assumes peace and prosperity. Annual deficits would never fall below $748 billion."

      This is pathological dangerous incompetence of the President and ALL the federal workers who submitted their greedy portion of the budget. THERE IS NO FEDERAL OVERSIGHT! With ALL federal oversight federal jobs being populated by greedy federal workers, it does not do them well to expose this corruption and theft.

      If we spend $1.2 trillion, a year for the next 10 years this will mean our deficit WILL be $27.6 trillion at the close of FY21.

      At a 30-year loan with an interest rate of 5% (a typical mortgage), the monthly payment will be $1.78 TRILLION! That is an annual average interest payment of $858 BILLION! With an initial annual interest payment of $1.37 TRILLION!! The first monthly interest payment will be $115 billion – In FY11 we are planning to pay only $156 billion for the entire year!

      The federal government is acting out of criminal negligence. Who is protecting this nation? NO ONE. Congress is carefully trying to protect their contributors; the federal workforce is trying to protect their personal take from the taxpayers as well as their gratuitous kickbacks from their contractors. The president is also doing all of the above. This criminal body is doing nothing but looting the treasury before we as a country collapse.

      To believe otherwise, these goons would have to be the largest collection of the stupidest people this planet has ever assembled in one dangerous location. DC cannot be looked for solutions, as that city is the author of the demise of the brightest light this planet ever had.

      When asked about what direction the sun over the horizon etched in the chair he sat in was going, Washington said that the sun was rising. Reagan said that the brightest days were ahead of us. Since Bush 41 took the helm, we have had a series of Presidents that have been dead set on reversing those assessments.

      $14.2 national debt is possible to pay back. We just need to cut federal spending down to $1.4 trillion and dedicate $1 trillion to debt service. It will take a very new look on what we are getting out of DC. Federal workers can no longer get paid outlandish wages and benefits; we need to get rid of EVERY domestic program. We need to deregulate business. We need to simplify tax collection.

      We need to make America worth investing in again. We need to recognize that for the sun to always rise over America we need the feds to get out of the way – they are not needed – they hurt.

      For a while, our military will need to be lean and mean. We need to reevaluate the need for a DoD. The initial idea was to have all military branches under one department, yet we still have a Dept of Army, Dept of Navy, and so on – each with duplicative organizational charts. The DoD is redundant and subjected to massive corruption with funneling cash to non-competitive defense contracts.

      At some point, we need to return to limited government – one that is NOT secretive and self preserving – one that is open and transparent and dare I say HONEST – one that allows this mess to stop and be reversed.

    5. Mike B, Iowa says:

      …or could it be something simpler, like our governments doing things that aren't in their job descriptions?

    6. Gary says:

      Uh, Kevin, the government gets enough money to perform all basic services and then some. They (we) don't have a taxing problem, they (we) have a spending problem.

      What fascinates me, and I have yet to see an analysis on this by anybody, is how quickly the amount of spending increased when Obama took office after Bush. Where are the increases going and why does the spending continue to increase even beyond that? Why can't we identify that and cut it? Call it cutting back to 20008 spending levels if you like, but anything to stop this madness.

    7. Brad, Detroit, MI says:

      Kevin – As I tell all of my liberal friends. If you feel your taxes are too low, write an additional check to the IRS. I am sure they will put it to good use.

      As for the rest of us that don't even get raises that keep up with the cost of living, I will pay the minimum amount of taxes allowed by law.

      I still don't understand the mentality that somehow the Left has the "right" to take money from people that produce and give it to people that don't.

    8. George Colgrove VA says:

      Read:

      http://www.cnbc.com/id/42246531

      From the article:

      "In the Sovereign Fiscal Responsibility Index, the Comeback America Initiative ranked 34 countries according to their ability to meet their financial challenges, and the US finished 28th, said David Walker, head of the organization and former US comptroller general."

      The artcle then goes on to say that if we take tough measures on federal spending we have the ability to turn this ship around – quickly. But that has to happen NOW! If not . . .

      "Walker predicted the US will have a debt crisis "within the next two to three years" and implored Washington lawmakers to "wake up.""

      Simple solution – WE HAVE DETERMINE WE CANNOT DECIDE WHAT TO CUT!

      So – apply a 15% across the board cut NOW! Everything MUST be cut. No sacred cows. This will save $500 billion without having to try! Spread these cuts over the next 6 months – evenly spread over every office. THe goal shoudl not be to cut out programs, but to trim everyting back by 15%. If there are statutes that have to be followed that will prevent the cut, congress should allow such defined statutes to be waived – for further review at a later time.

      Then another 15% cut should be implemented in the first 6 months of FY12. This will cut another $500 billion. After that, then focus on eliminating programs to take car of the remaining $400 to $600 billion we need to cut. We can turn this ship around by the end of FY12 and start operating in the black again. But we need to cut and cut deep!

    9. Mike B, Iowa says:

      …or could the biggest factor be a government involved in activities outside its job description?

    10. Lloyd Scallan (New O says:

      Kevin, are you and Ken Jarvis related. or is Ken your pen name? You still refuse

      to accpept the truth but rather follow blindly the leftist lies and distortions. And NO, its not the Bush tax cuts that increased dept. It's the "liberal, progressive, socialist entitlement system that began under another Dem, FDR. As for the

      "baseline", when Obama added over $250 billion to our dept in the month of

      February alone, bringing our defecate to such an amount that our childern's childern could never repay, you again prove you are either delusional by not recognizing what Obama has done and intends to do to destroy our economical system, or just maybe you are just someone of Obama's ilk that belives in his ideology.

    11. George Colgrove, VA says:

      Kevin

      Taxes are low because 10 million or more people are out of work. Household incomes in 28 states have gone down. Housing starts are the lowest – EVER! since that data was being recorded. Taxes are low because the money is all with the feds in DC!

      The countries with the largest number of billionaires are Russia and china! Russia went with a fair tax system years ago. The number of millionairs and billionaires have gone way down in the USA.

      Taxes are down because the federal workforce is shutting is down for their personal gain.

    12. Evan, Anchorage says:

      there is only one issue to deal with, it is not abortion, it is the budget. Forget the social issues. Do across the board cuts now!

    13. Leon Lundquist, Dura says:

      The New Junk Political 'Science' is how to waste gigantic quantities of money and make sure that Americans get as little benefit as possible! So the Progressives (Communists or DINOs) study, study, study problems and write expensive Reports that nobody can read. Then they ignore that and do whatever it is that has never worked in History! Masterfully they Waste Money! They train Americans to waste money, and I think it is illegal NOT to waste money!

      We are so used to the Demo-crats lying that it is nothing for them to commit Fraud at the Constitutional Level and always get away with it! I think it is a High Crime for Communist Infiltrators to 'take over' our Government and then drive America over a cliff! Oh! No! This is the new normal. The Progressives will say "It is Both Parties!" but that is just to hide the fact it is THEM. I am mad as a hornet at the RINOs but I sincerely hate the DINOs. I am not at all ashamed to hate the people destroying America. (Bankruptcy is "destruction" even if you call it "social justice!")

      Progressives are getting ready to say America's Government is irretreivably 'broken!" Yeah, but they will never admit they broke it. "We need Communism here in America!" But really, it is too late. We are already Communist Totalitarians but Americans don't know it. Well! This year they are bringing America down! Like I said before, there will be no Free and Fair Elections in 2012! Political Opinion will be totally manipulated in the most expensive elections ever held on Earth!

      Obama didn't submit a "Budget" in any ordinary meaning of the word. It is a plan for the destruction of America as we know it! They just call it 'budget' because it sounds responsible but isn't.

    14. All I know is that I am working at a big biotherapeutic corporation in Clayton NC and I support Barack Obama with all my heart. I invite all my friends and colleagues to re-elect Obama in 2012!! I LOVE YOU OBAMA

    15. Diana Brown, Illinoi says:

      I just cannot believe that people are still fooled by this so called president. His polcies are very destructive for our country but hopefully with the help of our tea party system he will be a person of the past and we can vote in a good fiscal consertative for president. I pray for that every day and God will help this nation. I can hardly remember what our country used to be because the progressives are destroying this country and with the help of God we will take it back!!!!

    16. Kim says:

      Diane Pearce,

      Just out of curiousity……why do you love Obama? I wish you specifically could let us know what good he has done so far for our country. Or do you just love the fact that he is cool ! He hasn't helped blacks get ahead, or Mexicans, or whites, or anybody. He just looks good, and the only time he tells the truth is when his mouth is shut. I am amazed at the people who are so sucked in emotionally that they can't see the forest for the trees. I had hopes for this man, but he truly is "fundamentally transforming" our country into a weak nation.

    17. xfactor says:

      "isn’t it true the biggest factor in the debt is the extension of the tax cuts in December of last year to cost of 4trillion?" – Kevin H

      In DEC 2010 Democrats controlled the 111th Congress. They had enough votes to pass the "stimulus"(an ABYSMAL FAILURE) and obamacare with nary a Republican vote, so they had the votes to end the "Tax Cuts for the Rich", so why didnt they do it? Oh yeah! Thoce IDIOTS didnt pass a FY Budget which took reconcilliation off the table.

      Tax Cuts dont create a debt or deficit, those are achieved by overspending.

      National Debt up $3,583,194,799,940.02 TRILLION in obamas 26 Months. $4,899,100,310,608.44 T for POTUS GWBs 96 Months

      At that pace obama will have presided over $13.230 TRILLION in 8 years

      We spend TRILLIONS on Entitlements, in fact weve waged a War on Poverty for 4 Decades and have more Poverty now.

      Look at Tax Cuts since the Tax Act of 1964 and you will see the Revenues to the Treasury INCREASED everytime http://www.taxpolicycenter.org/taxfacts/displayaf

    18. Brian, Maryland says:

      Kevin- Do you really think that if taxes were raised the government would not overspend again? Then what would the solution be? Raising taxes again? That seems like a cycle that would never end. The government is supposed to spend within their means which is the money brought in by taxes. Not overspend that and demand more.

    19. Scottsdale, AZ says:

      Herbert Croly lives.

      What is so completely annoying about the budget proposal from this president and the last 10, is that they have all bought into the Keynesian notion that government spending, even when and espcially when in deficit, is the same as private spending, that it produces the same results.

      It doesn't. It hasn't. And yet DC roars down the Road to Serdom, paying no attention to the devastating effects of a huge debt, the poor results of big government and the igmoniny of social policy that is based on 'giving a man a fish,' a policy that has also falled to product either a greater America or Great Americans.

      Is it possible to vote for people who believe in getting positive economic, social, an cultural results? I am beginning to think not.

    20. Steven, Louisiana says:

      The good thing about Barrack being president is when a kid does something stupid or asinine and others say to that child, "you will never get anywhere acting like an idiot and being irresponsible," you can factually say to that child that they have the credentials to become president. Obama was chosen to be president by his handlers, who saw in him an ability to pass ridiculous, nonsensical, and destructive laws that they could never get passed themselves. He vacations so much because he doesn't have to think for himself; his handlers take care of all of the details. What an embarrassment to have been coaxed into voting for a cult of personality, not a leader. What a dunderhead that tax and spend central planning numskull is.

    21. Frank Candido Bloomf says:

      I am not at all surprised that the Barrack H. Obama understated his budget plan by trillions of dollars. BHO has been disingenous ( he lied) about America, its people, and his politics for many. many years. Our only recourse is to vote him out of office; if we don't our children will suffer for our mistakes.

    22. Bobbie says:

      Kevin H. and Ken Jarvis have no desire to live free. They would rather see the accomplishments of America along with her principles, collapse. They're jealous of those that respect freedom doing well for themselves instead of (Kevin and Ken) doing the same. Unfortunate minds of derangement, like democrats, just can't grasp America's concept as they govern so their constituents can't either.

    23. Pingback: The Cloakroom » Fiscal Irresponsibility: 28 Facts on Spending and Debt

    24. Pingback: The Debting Truth About Obama’s Budget | The Bryan/College Station Tea Party

    25. Wayne, Tennessee says:

      Does this really make sense?

      What happens when the new year starts?

      Just wondering.

      http://www.realclearpolitics.com/video/2011/03/31

    26. Audrey, California says:

      So which is it – $10,000 per family (which is a smaller number than household (households include couples, single folks without children) or $$80,000 per family? Let's base discussion on FACT first, before getting hostile with each other.

      http://www.factcheck.org/2009/02/stimulus-bill/

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