OBAMA'S BUDGET: THE ROAD TO RUIN NOT THE PATH TO PROSPERITY
April 3, 2009
Perhaps the most top rated conservative Senator is Oklahoma's Tom Coburn. He has one more than a dozen occasions urged President Bush to pull out the veto stamp and use it on bills stuffed with pork barrel spending. Coburn is considered the most fiscally conservative politician since Newt Gingrich and along the line of Ronald Reagan.
Recently, Sen. Coburn's office provided a few facts about the proposed budget submitted by President Obama. Coburn has called it more of a "budget buster rather than a budget." Here are a few of the facts:
Total spending under this budget is $3.9 trillion in 2009, or 28% of GDP, the highest level as a share of GDP since World War II.
This budget provides $1.2 trillion in discretionary budget authority for FY 2010 and increases discretionary spending by $490 billion over 5 years. Total spending in 2009 is 28 percent of GDP.
The Democrat budget includes $2.2 trillion in mandatory spending for FY 2010, which includes Social Security, Medicare and Medicaid spending.
So there are the basics. And remember the pledge that by 2012 the deficit will be cut in half. Well, with this budget, that doesn't mean a whole bunch in terms of what's left in the deficit. It will still most certainly be higher than any deficit prior to this one.
Deficit is one thing, debt is another. Politicians like to use smoke and mirrors with deficit and debt, preferring to ignore debt and talk about how they're dealing with debt. Well let's get serious about this - the debt is what we owe, the deficit is just how much more we're piling up.
Total National Debt Today: $11.055 trillion
Under the Democrat Budget:
FY 2010: $12.2 trillion;
FY 2011: $14.3 trillion;
FY 2012: $15.3 trillion;
FY 2013: $16.1 trillion;
FY 2014: $17.0 trillion.
So now we see the bottom line. In FY 2011, we will have more debt than GDP (the US GDP is 13.84 Trillion). And, in all honesty, we don't have to be - unless we pass this budget. You cannot spend yourself out of debt. And you cannot cure a credit problem by extending more credit.
But there's more! Take Public Debt:
This budget adds $4.96 trillion to the public debt by 2014. Debt will be about two-thirds of GDP for the entire budget window, and deficits will be at least $500 billion in each year of the budget window.
The Democrat Budget sets total outlays in FY 2010 at $3.53 trillion and total revenues at $2.29 trillion, for a deficit of $1.24 trillion.
This is truly the beginning of the end. And without cap and trade involved, without universal health care is factored in, just to pay for this mess, taxes are going to go up. The question is how high. And as you'll see, it'll be higher than the spin is spinning:
Against a baseline that assumes current law tax policy is extended, S. Con. Res. 13 raises taxes by $361 billion and allows for $1.3 trillion in additional tax increases. In addition their budget paves the way for additional tax increases from a proposed cap-and-trade tax in reconciliation.
If you're wondering where the additional $1.3 trillion in taxation might (will?) come from, Coburn provides a little behind the scenes look at how the Democrats procedurally set up phantom funds that they can initiate through a majority vote anytime they wish to fund favored initiatives:
The Democrat budget includes 15 "reserve funds," which essentially "phantom spending" policy statements that allow the majority to say that they would like to fund a certain initiative. The deficit neutral requirement associated with the reserve funds typically require that taxes be raised in order to pay for the new policy initiative. If all reserve funds were to be fully enacted, total spending would increase by $1.3 trillion, financed by tax increases or spending decreases.
Welcome to "hope and change". More debt, more spending, bigger deficit, and no end in sight. Someone will end up paying for all of this mess, and my guess is it will be all of us - for generations.
We believe that the Constitution of the United States speaks for itself. There is no need to rewrite, change or reinterpret it to suit the fancies of special interest groups or protected classes.