Obama Expects Deficit To Hit $1.65 Trillion This Year
February 14, 2011 Leave a comment
The Obama administration expects this years budget deficit to hit $1.65 trillion if their plan is followed. I dare say the American public will not be fooled by the administration’s claim that their budget will cut $1.1 trillion over 10 years. That amounts to $110 billion each year, which for this year is about the same as the increase in the proposed budget deficit. In other words, it amounts to almost nothing.
Don’t be fooled by any pol who declares that his play will save X amount of money over the course of a decade. This year’s budget will not handcuff the budget a future Congress may pass. Any claim of future saving is bogus across the board whether it’s coming from the White House or from the House Republicans. The only budget cuts that matter are the budget cuts for this fiscal year. There’s no telling what cuts that a Democrat Congress elected in 2012 might reinstate.
Obama’s official budget won’t be released until later today, so it remains to be seen what at is in it. Rumor has it that it includes $1.3 trillion in tax increases. Even if that number is high, any tax increase is unacceptable in this economy. The American people cannot afford to be saddled with more taxes. This includes the rich that Obama so loves to hate. In fact, the middle class can’t afford a tax increase on the rich because we rely on the rich to invest in our jobs. But I wonder though, how can the President propose tax increases and continue to stand by his campaign pledge not to raise taxes on people making less than $250k a year?