Posted on 02/12/2010 11:00:12 AM PST by reaganaut1
President Barack Obama's 2011 budget lays out a stunningly expensive big-government spending agenda, mostly to be paid for years down the road. He proposes to increase capital gains, dividend, payroll, income and energy taxes. But the enormous deficits and endless accumulation of debt will eventually force growth-inhibiting income tax hikes, a national value-added tax similar to those in Europe, or severe inflation.
On average, in the first three years of the 10-year budget plan, federal spending rises by 4.4% of GDP. That's more than during President Lyndon Johnson's Great Society and Vietnam War buildup and President Ronald Reagan's defense buildup combined. In those same three years, spending on average hits the highest level in American history (25.1% of GDP), save the peak of World War II. The average deficit of $1.4 trillion (9.6% of GDP) is over three times the previous 2008 record.
Remarkably, President Obama will add more red ink in his first two years than President George W. Bush—berated by conservatives for his failure to control domestic spending and by liberals for the explosion of military spending in Iraq and Afghanistan—did in eight. In his first 15 months, Mr. Obama will raise the debt burden—the ratio of the national debt to GDP—by more than Reagan did in eight years.
...
Two factors greatly compound the risk from Mr. Obama's budget plan. He is running up this debt and current and future taxes just as the baby boomers are retiring and the entitlement cost problems are growing, which will necessitate major reform. [...] And Mr. Obama's programs increase the fraction of people getting more money back from the government than the taxes they pay almost to 50%, just as the demographics on an aging population will drive it up further. That's an unhealthy political dynamic.
(Excerpt) Read more at online.wsj.com ...
It passed that point a long time ago.
We are screwed: Remarkably, President Obama will add more red ink in his first two years than President George W. Bush—berated by conservatives for his failure to control domestic spending and by liberals for the explosion of military spending in Iraq and Afghanistan—did in eight. In his first 15 months, Mr. Obama will raise the debt burden—the ratio of the national debt to GDP—by more than Reagan did in eight years.
Obama is an idiot.
This thread is a good place to continue this discussion :)
I'm soooo surprised........
***roll eyes***
Obama’s base is addicted to government largess. He can't reduce expenditures, without losing his base. He can't raise taxes, without losing the “moderates”.
Or he's a plant for his brilliant yet evil puppetmasters. I haven't decided yet.
There’s no reason he can’t be both.
hard to tell,
i vote for the later, but i too am an agnostic.
see where I come from, deficits are ALWAYS dangerous. But I’m oldfashioned that way.
There is no painless way out of this. And i just read where the Dims are going to try again to pass Health Care, again. This will be another Trillion Dollars that we do not have. The Chinese are worried and rightfully so. We do not have their money either. I guess we will just have to trade them States, for debt. How much for Hawaii ?
HOW MUCH FOR HAWAII?
True, dat.
Need more government handouts. Need new entertainment centers for crack whores squirting out babies, the ones they have now are sooooo 2007.
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