Skip to comments.Obama Will Propose a Bait-and-Switch Budget Plan
Posted on 04/06/2013 5:14:36 PM PDT by Kaslin
Are we about to see a new kinder-and-gentler Obama? Has the tax-and-spend President of the past four years been replaced by a fiscal moderate?
Thats certainly the spin were getting from the White House about the Presidents new budget. Lets look at this theme, predictably regurgitated in a Washington Post report.
President Obama will release a budget next week that proposes significant cuts to Medicare and Social Security and fewer tax hikes than in the past, a conciliatory approach the document will incorporate the compromise offer Obama made to House Speaker John A. Boehner (R-Ohio) last December in the discussions over the fiscal cliff which included $1.8 trillion in deficit reduction through spending cuts and tax increases. unlike the Republican budget that passed the House last month, Obamas budget does not balance within 10 years.
Since Americas fiscal challenge is the overall burden of government spending, Im not overly worried about the fact that Obamas budget doesnt get to balance.
But I am curious whether Obama truly is proposing a conciliatory budget. Are the tax hikes smaller? Are the supposed spending cuts larger?
Actually, there are no genuine spending cuts since the Presidents budget is based on dishonest baseline budgeting. At best, were simply talking about slowing the growth of government.
But since Mitchells Golden Rule is based on the very modest goal of having government grow slower than the private sector, its possible that Obama may be proposing something worthwhile.
But possible isnt the same as probable. Indeed, it appears that the budget is predicated on a giant bait-and-switch since the beneficial spending restraint imposed by sequestration would be repealed!
Obamas budget proposal, however, would eliminate sequestration.
This appears almost as an afterthought in the Washington Post article, but it should be the lead story. The White House wants to get rid of a policy that genuinely limits the growth of spending.
We wont have the official numbers until the budget is released next Wednesday, but Ill be very curious to see whether the supposed spending cuts elsewhere in his budget are greater than or less than the spending increases that will occur if sequestration is canceled. Particularly since the President also is proposing lots of new spending on everything from early child education to brain mapping.
Moreover, it seems as though Obama tax numbers are based on dodgy math as well. The White House is claiming that this is a conciliatory budget because hes no longer proposing $1.6 trillion of tax hikes.
The budget is more conservative than Obamas earlier proposals, which called for $1.6 trillion in new taxes and fewer cuts to health and domestic spending programs. Obama is seeking to raise $580 billion in tax revenue by limiting deductions for the wealthy and closing loopholes for certain industries like oil and gas. Those changes are in addition to the increased tobacco taxes and more limited retirement accounts for the wealthy that are meant to pay for new spending.
Lets try to disentangle the preceding passage. The President wants $580 billion of new taxes from deductions and loopholes. But he also wants an unknown pile of revenue from new tobacco taxes and from restricting IRAs. And keep in mind that he already got $600 billion as part of the fiscal cliff.
Until we get official numbers, we cant say anything with certainty, but Ill be checking on Wednesday to see how much revenue the President intends to grab as a result of the tobacco and IRA provisions. Suffice to say that I wont be surprised if the net impact of all his tax hikes is close to $1.6 trillion. Especially since hes also proposing to manipulate CPI data, a change that would generate another $100 billion in revenues.
In other words, the revenue side of his budget likely will be a bait-and-switch scam, just like the spending side is a joke once you understand that he wants to get rid of sequestration.
I hope Im wrong, but I fear that my concerns will be validated next Wednesday and well see another budget that has no real entitlement reform and more class-warfare tax hikes.
P.S. The budget approved by the House of Representatives avoided any tax increases and restrained spending to that it will grow by an average of 3.4 percent annually. Not exactly draconian, but that approach does balance the budget in 10 years.
Hussein is determined to destroy America. It’s “for the children”
Helen Keller could have seen that coming! lol
I wonder if those low information, Obama two-timers have figured out that their guy is screwing them over yet. I guess they’ll have to hear if from the Ken and Barbie “news” readers on the nightly news. I doubt they are smart enough to figure it out for themselves.
As with Clinton, with Obama the truth is really a lie that just hasn’t yet been discovered.
As with all liberals, they start by lying to themselves. They lie to their spouse, they lie to their family, they lie to their associates and then they lie to the public. Telling the truth is merely a “tactic” by which they can advance the broader lie. The lie serves The Agenda. In fact, their religion, the reason they get up in the morning, is to serve The Agenda.
And as with all things socialist, The Agenda has an insatiable appetite for economic resource that it cannot create but instead must seize from others.
Does anyone really expect that the budget Obama proposes will grow less than 2% from last year?
I wonder if those low information, Obama two-timers have figured out that their guy is screwing them over yet. I guess theyll have to hear if from the Ken and Barbie news readers on the nightly news. I doubt they are smart enough to figure it out for themselves.
Most will never get it. Their minds have been stolen.
And they also deny they ever voted for him. In 1980 it was hard to find anyone who would admit they voted for Carter.
Lying to themselves is the biggie. Then they truly believe their own lies. I believe Clinton and obama really mean it when they say “I didn’t say that”. Then catch them red handed with proof and it’ll be “I mispoke”. People who vote for people like this are more dangerous than the politicians. Lie to me once and I’ll write in Mickey Mouse.
I had a liberal co-worker who finally said she was “tricked by Obama”. They will never admit that they were stupid when they voted for him.
Obama is Lucy, Boehner is Charlie Brown and the Budget is the Football.
Isn’t bait-and-switch Obama’s MO for everything?
this an age old tactic of the Democrats. They will work out an agreement to give Republican significant cuts in spending for a modest increase in taxes. The taxes happen quickly but the cuts in spending never happen.
The one seared in my mind is George (read my lips, no new taxes) Bush. He made a good faith deal. He kept his part, the democrats did not. There are some other good examples.
I am just wondering why they aren’t trying to slip in gun control legislation into every bill that gets voted on in the hope that it will slip under the radar.
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Interesting, but I'm not sure that I quite get it. (I think I do, but I'm not sure.) Do you mean "truth" as the belief that the lies of today can be explained (and rationalized) by mere faith in the leftist dogma? The facts are just around the corner?
If I'm off base, might you expand or give a nice example?
I really liked the entire post, btw.
Just remember Satan will promise you anything for your soul, but never delivers anything but grief!