By Bill Wilson
Only in Washington, D.C. can a proposed budget that increases
spending and borrowing every single year be considered to somehow reduce
the deficit. The latest Obama budget for Fiscal Year (FY) 2013 — and how the Administration is spinning it — was no exception.
According to Barack Obama himself,
the proposal would somehow “reduce” the deficit by $4 trillion. By
every measure, however, there is simply no way to get there.
An even bigger whopper was tossed out by departing White House Budget Director Jack Lew, who on Meet the Press said, “The president's budget has $1 of revenue for every $2.50 of spending cuts.”
The Office of Management and Budget’s (OMB) baseline for 2013-2022
says outlays will total $47.053 trillion. Obama’s proposed budget takes
that to $46.959 trillion. Since spending actually increases every year
under Obama’s proposal, the only cut is off of the baseline — and
that’s just $94 billion of so-called “cuts”.
Meanwhile, OMB says revenues over the next ten years will total
$38.391 trillion. Under Obama’s proposal, that goes up to $40.274
trillion — an increase of $1.883 trillion in taxes, mostly on job
By our count, that’s about $20 of tax increases for every dollar of
“cuts,” and those are not even real cuts to the actual budget. Spending
would still increase every single year under Obama’s proposal.
Meanwhile, the tax hikes are real.
Get full story here.