The Spectacle Blog

Obama Budget: Lots of Tax Hikes, Little Deficit Progress

By on 2.13.12 | 3:23PM

James Pethokoukis supplies more reasons to dislike the Obama budget:

All in all, Obama has proposed some $1.6 trillion in new taxes over ten years, taking tax revenue as a share of GDP to 20.1 percent in 2022 vs. a historical average of 18 percent. And despite all those new taxes, Obama's plan would still add $6.7 trillion in new debt and make no progress in lowering the nation's total debt levels as a share of output. The debt-to-GDP ratio is predicted to be 74.2 percent this year and 76.5 percent in 2022.

At the same time, federal spending would never fall below 22 percent of GDP. Indeed, Obama - if he serves two terms - would be the first U.S. president in history to spend 22.0 percent or more of GDP for eight straight years (and then beyond). And keep in mind that these debt and spending numbers claim about $850 billion in savings from unwinding the wars in Iraq and Afghanistan, spending about a quarter of those phony "savings" on highway funding.

This specific budget is almost certainly dead on arrival, since it can't pass the Republican-controlled House and probably won't get many votes even in the Democratic-run Senate. But it does illuminate the president's budget priorities. It also reminds us that his party is committed to a permanent increase in the size and cost of the federal government.

Send to Kindle

Like this Article

Print this Article

Print Article

More Articles From W. James Antle III