Skip to comments.Obama budget falls far short of debt commission savings plan (1/3 of reduction from tax increases)
Posted on 02/13/2011 1:58:44 PM PST by Qbert
President Obamas 2012 budget request to be released on Monday will reduce budget deficits over the next decade by only a quarter of the amount proposed by the presidential debt commission in December, a senior administration official confirmed Sunday.
Whereas the debt commissions mix of spending cuts and tax increases reduced deficits by $4 trillion over 10 years, the Obama budget will reduce the combined deficits by $1.1 trillion.
Those deficits would otherwise total about $12 trillion when added together.
The budget also does not propose long-term solutions to Medicare and Social Security spending either, although it does propose paying for a two-year extension of the so-called Medicare Doc fix by new cost control measures. Congress regularly blocks the reduction in payments to doctors under Medicare reform and the cost of doing so has not been offset.
The deficit reduction by 2021 is made up of two-thirds spending cuts and one-third tax increases.The tax increases will likely be opposed by congressional Republicans.
The largest spending cut is achieved by a five-year freeze in domestic non-security spending. As previewed by President Obama in the State of the Union address, the freeze is to save $400 billion over five years.
The tax cuts include new taxes on multinational corporations and the wealthy. A three year fix of the alternative minimum tax (AMT), so that it doesn't hit middle-income individuals, is paid for by limiting tax deductions for the wealthy. Large cuts next year include $1 billion in airport grants and $1 billion in water treatment grants. The low-income energy program Liheap and community service block grants will be cut in half, a senior administration official confirmed.
As anticipated, the Obama budget will include $78 billion in savings proposed by Defense Secretary Robert Gates.
The plan does not reduce deficits to 3 percent of GDP in 2015, something Obama had charged the debt commission to try to do, but does so in 2016.
And worse, the Dems have no intention of raising taxes for the purpose of deficit reduction- it’s all about locking in the rates so they can spend even more... and then of course, argue for the “necessity” of even higher taxes to pay for the new debt they’ve added.
‘At some point... its over.’
When the private sector begins to see their standard of living fall and the public sector’s lifestyle rises, that will be the beginning.
The public servant has become the master.
Isn't perception an amazing thing?
“Isn’t perception an amazing thing?”
Yep- great graphic!
Plus, you gotta love how he plans to “reduce deficits” by 1.1 Trillion over ten years, while his estimated budget deficit for 2012 alone is 1.5 Trillion...
Whereas the debt commission's mix of spending cuts and tax increases reduced deficits by $4 trillion over 10 years, the Obama budget will reduce the combined deficits by $1.1 trillion.Oh, and debt commission? Shove your tax increases up your "deficit".
Its already past that.
Do you think they know deep down that the jig is up?
Key components of the ‘social pact’ are gone, now. Most importantly the loss of trust.
It should be known that at the beginning of a dynasty, taxation yields a large revenue from small assessments. At the end of the dynasty, taxation yields a small revenue from large assessments.
‘Abd-ar-Rah.mân Abû Zayd ibn Khaldûn, The Muqaddimah, An Introduction to History, Franz Rosenthal translation, abridged and edited by N.J. Dawood, Bollingen Series, Princeton University Press, 1967, p.230, quoted by Ronald Reagan
I’d almost dare them to raise taxes.
Pretty soon the “Doc Fix” will be to force doctors to accept lower payments by making it a crime to not accept medicare patients even if it’s at a loss.
I have a great plan to eliminate the budget deficit completely---
"Let's raise everyone taxes 250% this year! If the Republicans do not go along with me, they are not serious about deficit reduction as I am! "
“The tax cuts include new taxes on multinational corporations and the wealthy.”
Can anyone explain this sentence? The tax cuts include new taxes...
I guess Obama has finally set up his ministry of truth. Up is down and down is up. Tax cuts now include new taxes.
Imagine that in a different context. The reduction in troops in Afghanistan will include new troops in Afghanistan.
If we can run up a trillion dollars in spending over three or four years, why can’t we cut it in 2 or 3 years? This is insanity. The budget needs to be CUT by a trillion dollars over the next few years. Everyone will share the pain. There is no leadership on this issue on the right. Everyone is too focused on silly issues like gays at CPAC. That whole CPAC should have been about how do we cut $1 to $1.5 trillion dollars from the budget. That is the conservative issue of our time.
Agreed. People are still way too comfy for any real change to occur. Once they start running out of food stamps and cant have there cable tv anymore then you will start seeing people get pissed off. As for the spending cuts, any truly meaningful spending cuts to tackle this huge of a debt would have to basically shut the govt down.
Sadly, that happened in 2009.
At which time many doctors will retire, leave their profession, or leave the country. I won't work for a loss, and I don't expect a doctor to do so either.