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President Obama’s Freudian Slip On His Budget

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Posted on February 16 2011 2:15 pm
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President Obama had a Freudian slip at his press conference yesterday while touting his new budget for the 2012 fiscal year. Before immediately catching himself and continuing on with his spin, he dropped the “S-Bomb” in declaring that his budget would bring:

annual domestic spending to its lowest sh** — lowest share to the economy since Dwight Eisenhower

Obama could not help but concede – albeit, for just a second or two – that his budget proposal was in reality a pile of manure.  Consider, for example, that balanced budgets are promised by mid-decade, but only if mounting interest costs on the debt are excluded from the calculations. That’s like trying to pretend your household budget is in great shape by just forgetting about counting the mortgage, car and credit card interest owing every month.

The current year’s budget is expected to hit a record $1.6 trillion. To deal with the rising federal debt, Obama proposes to freeze federal discretionary spending at current levels, which would “save” nearly $500 billion over ten years. In other words, he would lock in place the record rise in spending during his first two years in office that helped get us to this unsustainable level of deficits in the first place.

Obama’s proposed budget for the 2012 fiscal year would raises taxes.  It would also increase spending on nonsensical programs, like high speed trains, and increase education spending by 20 percent when it is already far too high – over $70 billion.

Most importantly, President Obama has abdicated any demonstration of presidential leadership by sidestepping the comprehensive recommendations of the bipartisan commission that he appointed to save $4 trillion over ten years by reducing all domestic and military spending, including the sacred cow entitlement programs of Social Security, Medicare, and Medicaid, as well as overhauling the tax code.

On the “O’Reilly Factor” last night, Bill O’Reilly repeated a simple solution advocated by some leading Republicans to getting the nation on the path of real deficit reduction – go back to pre-bailout, pre-stimulus 2008 spending levels.

Consider the following comparisons between fiscal years 2008 and 2012, from the President’s 2012 budget report:

2008 Total Receipts………………………………………………………………     $2.523,999 trillion

Total Outlays…………………………………………………………………. $2.982,554  trillion

Deficit…………………………………………………………………………..   $–458,555  billion

2012 Total Receipts………………………………………………………….. $2.627,449 trillion

estimate Total Outlays……………………………………………………………. $3.728,686  trillion

Deficit………………………………………………………………………$ -1.101,237 trillion

What this data tells us is that even with total receipts from higher taxes, etc. projected to be about $100 billion higher in the 2012 fiscal year than they were in the 2008 fiscal year, the projected deficit is more than double. That is solely attributable to the obscene rise in federal spending  – a 40 percent increase. The average rate of inflation for the calendar years 2008, 2009 and 2010 was only 1.66 percent.

The projected estimate for the 2015 fiscal year – the midpoint of this decade – is $3.583,043 trillion in receipts and $4.189,773 trillion in spending, leaving a projected deficit of $606,730 billion – still 32 percent higher than the fiscal year 2008 deficit, even though projected government receipts from higher taxes, etc. are 42 percent higher than the receipts for fiscal year 2008!

We do not need more job-killing taxes to solve the deficit problem. Instead,  start by bringing spending down to at least the pre-emergency 2008 levels.

Joseph Klein is the author of a recent book entitled Lethal Engagement: Barack Hussein Obama, the United Nations and Radical Islam.

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