Obama isn’t concerned with our country’s mad dash into the fiscal abyss; he’s relishing it. How else can one explain his newly released $3.77 Trillion spending plan?
In true Obama-style, his Socialist pie in the sky would be funded through deep punishment to targeted populations… Increasing income tax, as well as taxes on goods, such as almost doubling the current tax on cigarettes, and, the best one of all, placing a harsh monetary cap of his choosing on individual retirement accounts.
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The Washington Post reports,
President Obama unveiled a 10-year budget blueprint Wednesday that calls for nearly $250 billion in new spending on jobs, public works and expanded pre-school education and nearly $800 billion in new taxes, including an extra 94 cents a pack on cigarettes. …
Congressional Republicans promptly attacked the plan.
“We don’t need an extreme, unbalanced budget that won’t balance in your lifetime or mine,” Senate Minority Leader Mitch McConnell (R-Ky.) said in a floor speech before Obama’s Rose Garden announcement. “It looks like there’s less than $600 billion worth of reduction in there — and that’s over a decade — all of it coming from tax increases. In other words, it’s not a serious plan. For the most part, just another left-wing wish list.”
House Budget Committee Chairman Paul Ryan (R-Wis.) said in a statement he was “disappointed by the president’s proposal because it merely ratifies the status quo.” House Appropriations Committee Chairman Harold Rogers (R-Ky.) said it was “overstuffed with spending and tax increases that will continue to hinder economic growth.” …
Obama’s written message to Congress calls a growing economy the “North Star that guides our efforts.” To that end, his budget seeks $50 billion in new cash for roads and public works, $1 billion for 15 new institutes to promote innovation in manufacturing and $77 billion to make free, public pre-school available to 4-year-olds nationwide.
The cost of those initiatives would be covered through spending cuts and new revenues, including placing a $3 million cap on the value of individual retirement accounts and raising the federal cigarette tax from $1.01 to $1.95 per pack. …
The budget proposes to spend $3.77 trillion in the fiscal year that starts in October, and projects a 2014 deficit of $744 billion, or 4.4 percent of the nation’s gross domestic product. The budget gap would narrow steadily over the coming decade, shrinking to $439 billion in 2023, or 1.7 percent of GDP. …
All told, Obama calculates that his proposals would reduce projected borrowing by about $1.4 trillion over the next decade, but that figure includes more than $500 billion in savings from ending the wars in Iraq and Afghanistan that the administration never intended to spend.
Subtracting those savings and the president’s proposal to replace the sequester brings total new debt reduction closer to $700 billion over the next decade.
Here’s Obama’s version of “balanced and responsible” – Trillion dollar deficits from here to eternity…(J. Hoft Chart)
This should make everyone’s gut churn.