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Morning Bell: Obama's Fake Budget Marketing Exposed

Posted By Romina Boccia On April 12, 2013 @ 7:09 am In Economics | Comments Disabled

President Obama is marketing his new budget by saying it has “more than $2 in spending cuts for every $1 of new revenue.” [1] Is this true?

In a word, no.

In fact, his spending increases and advertised spending cuts cancel each other out—leaving only a massive tax increase.

The President cancels sequestration’s spending cuts—therefore raising spending—by the same amount that he reduces spending. When that’s done, all that’s left is a $1.1 trillion tax hike.

Budget cuts spending 600 [2]

Tweet this [3]

Here’s the math [4]:

  1. The President increases spending by $1.1 trillion by cancelling sequestration. Sequestration, the automatic spending cuts adopted in the Budget Control Act of August 2011, is already in effect. Thus, cancelling these reductions in spending increases spending by $1.1 trillion over 10 years.
  2. The President reduces spending by $1.1 trillion. The President lists a number of additional spending reductions based on a December offer to Speaker of the House John Boehner (R-OH). These total about $1.1 trillion and are completely offset by the cancellation of sequestration.
  3. The President raises taxes by $1.1 trillion. The official total tax increase in President Obama’s budget is available in the Treasury Department’s “Green Book.” [5] Treasury scores the total net tax increase from all President Obama’s tax policies at more than $1.1 trillion over 10 years.

So President Obama’s spending cut claim doesn’t hold up, and Americans get stuck with a $1.1 trillion tax bill. Real math hurts.

Read the Morning Bell and more en español every day at Heritage Libertad [6].

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

URL to article: http://blog.heritage.org/2013/04/12/obama-budget-obamas-fake-budget-marketing-exposed/

URLs in this post:

[1] more than $2 in spending cuts for every $1 of new revenue.”: http://www.whitehouse.gov/omb/overview

[2] Image: http://blog.heritage.org/wp-content/uploads/BL-obama-budget-all-taxes-not-cuts-600.jpg

[3] Tweet this: http://clicktotweet.com/VxMdr

[4] Here’s the math: https://docs.google.com/file/d/0B8se_y_wFVyIV3ZPV2RHaW1jVmM/edit

[5] Treasury Department’s “Green Book.”: http://www.treasury.gov/resource-center/tax-policy/Documents/General-Explanations-FY2014.pdf

[6] Heritage Libertad: http://www.libertad.org/

[7] “lowering” U.S. rhetoric: http://www.weeklystandard.com/blogs/kerry-arrives-skorea-says-nkorea-will-not-be-accepted-nuclear-power_716261.html?page=1

[8] North Korea’s nuclear capabilities: http://blog.heritage.org/2013/04/11/assessing-north-korean-nuclear-capabilities/

[9] honoring Margaret Thatcher: http://heritageaction.com/2013/04/democrats-are-blocking-resolution-to-honor-lady-thatcher/

[10] hack an airplane and control it using a smartphone app: http://www.businessweek.com/articles/2013-04-12/hacking-an-airplane-with-only-an-android-phone

[11] Join us at noon ET: http://blog.heritage.org/2013/04/11/watch-google-hangout-on-heritage-foundation/

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