The Real Fiscal Cliff is the President’s Budget
His budget. His spending. Those are the real Fiscal Cliffs.
His budget, you remember, the one that was defeated 99-0 in the Senate last year. It didn’t receive a single vote in the House either. To recap – no elected official cast a vote in favor of the budget Obama now claims he has a mandate to enact. The one he is using as the starting point for negotiations. Interesting. It gets better. This budget is built on fantasy.
Despite the $800B ‘one time’ stimulus being permanently added to the baseline. Despite four consecutive years of over $1T annual deficits. Despite growing our National Debt by $5.5T in 4 short years. Despite all this, Obama doesn’t think we are spending enough money so his budget, the 99-0 budget, INCREASES spending by over $500B over the next four years. The US Government spent $2.98T in 2008. If Obama gets his way the US Government will be spending $4.33T per year when he mercifully leaves office. That is an increase in spending of $1.35T or almost 50% in just 8 years. Here is a fun exercise. On your next budget at work, submit an expense increase of 50% with revenues that not only don’t cover that spending but cause losses equal to 20-30% of annual revenue. Let me know how that works out for you. I know how it works out for the United States
When you pile more spending onto $1T annual deficits you get DEBT. Lots and lots of DEBT.
It is his PLAN to add ANOTHER $2.83T to our NATIONAL DEBT over the next four years. Full Stop. His best case scenario, HIS PLAN adds $3T MORE in DEBT. That plan, the one that was defeated 99-0, assumes he gets all of his tax increases and the economy grows 3-4% over the planning horizon. Given our sub 2% history and threat of a double dip recession I could call his tax estimates optimistic at best. This also assumes the Fed can print money forever and that interest rates never go up and that his tax increases and pending regulations do no harm to the economy despite every economic forecast to the contrary.
And all of this is BEFORE assessing the impacts of Obamacare on spending and economic productivity.
Several GOP talking heads are sending signals they are open to tax increases. $80B a year is baked into that economic mess I just outlined. Even if he got his tax increases, Obama is PLANNING on INCREASING our debt by another $2.8T. This isn’t a tax issue. It is a Capitalism issue.
Not a nickle of new taxes would be applied to reducing our debt. Every penny would by used to justify increased deficit spending
WE HAVE A SPENDING PROBLEM
The current ‘Fiscal Cliff’ debate is a man made event. It is the result of Republicans agreeing to actions now with the promise the Democrats would apply actions later. That never happens. The now always happens and the later never does. Guess what? The Democrats are trying the same “I’ll gladly pay you Tuesday for a hamburger today” nonsense again. And why wouldn’t they. The GOP has proven it works and rewarded their irresponsible behavior.
I produced the chart below using data from the White House budget available on their website. Obama’s proposed tax increase trajectory should scare every American irrespective of their tax bracket. I am also including a primer to help you re-frame the debate with your liberal friends. STOP using their talking points and verbiage. Take back the debate:
- Taxes are not Revenue – they are confiscated funds
- Letting you KEEP YOUR money is not a cost.
- SPENDING your money is a COST.
- BORROWING, paying interest and spending our children’s money is Generational Theft