02.14.2012 in Featured, Politics by Bill Wilson 14

Obama’s phony $4 trillion in deficit ‘reduction’

Obama speaks to Wall Street protesters

Photo Credit: Official White House Photo by Chuck Kennedy

By Bill Wilson — Only in Washington, D.C. can a proposed budget that increases spending and borrowing every single year be considered to somehow reduce the deficit. The latest Obama budget for Fiscal Year (FY) 2013 — and how the Administration is spinning it — was no exception.

According to Barack Obama himself, the proposal would somehow “reduce” the deficit by $4 trillion. By every measure, however, there is simply no way to get there.

An even bigger whopper was tossed out by departing White House Budget Director Jack Lew, who on Meet the Press said, “The president’s budget has $1 of revenue for every $2.50 of spending cuts.”

The Office of Management and Budget’s (OMB) baseline for 2013-2022 says outlays will total $47.053 trillion. Obama’s proposed budget takes that to $46.959 trillion. Since spending actually increases every year under Obama’s proposal, the only cut is off of the baseline — and that’s just $94 billion of so-called “cuts”.

Meanwhile, OMB says revenues over the next ten years will total $38.391 trillion. Under Obama’s proposal, that goes up to $40.274 trillion — an increase of $1.883 trillion in taxes, mostly on job creators.

By our count, that’s about $20 of tax increases for every dollar of “cuts,” and those are not even real cuts to the actual budget.  Spending would still increase every single year under Obama’s proposal. Meanwhile, the tax hikes are real.

No wonder we’re sinking into the Abyss.  The national debt is more than $15.3 trillion and increases by $1 trillion every year.  Politicians do not even know how to add and subtract.

At best, Obama’s budget can claim $1.977 trillion in deficit reduction off of the current baseline, but over 95 percent of that is because of tax increases.

So, how did Obama get to $4 trillion? By his own admission, he includes “the cuts that we’ve already made” under the so-called debt deal. But even then, what was supposedly $1 trillion of savings only cut actual spending in 2013, and then only by a paltry $62 billion. Every other year under the baseline, spending will increase, too.

Everything Obama says is suspect. His budget director’s claims are just more imaginary numbers from the government — pure propaganda designed to prevent the American people from seeing the true dire straits our fiscal house is in.

The fact is, this quarter the national debt will grow to be larger than the entire economy, probably never to return to below 100 percent of the GDP. The reason is because while the economy only grows at a tepid pace of less than 2 percent, the debt continues to expand by about 10 percent every year.

By 2021, under Obama’s budget, the national debt will total $25 trillion.

No country has ever sustained such borrowing. Remaining the world’s preeminent economic superpower is impossible under such policies. Obama is pursuing a purposeful policy of national decline.  It will take new leadership to get the Ship of State back on course.

Bill Wilson is the President of Americans for Limited Government. You can follow Bill on Twitter at @BillWilsonALG.

  • http://www.facebook.com/people/Mike-Evans/1141094735 Mike Evans

    Everything Obama says is nothing but smoke and mirrors. He evidently thinks all Americans are gullible and stupid. I guess he knows they are since they voted him in the first time. I hope they have taken some smart pills since the last election. 

  • Anonymous

    The BEAST of human goverment will ALWAYS increase it’s own food supply. Anybody who speaks for the BEAST will lie about how much it is consuming. Now the BEAST is consuming everything in sight and to fulfill its apetite, it is BORROWING and TAXING OUT OF CONTROL. Any man who joins the BEAST through politics, is on the side of the BEAST, so don’t expect a politician to cut any spending any time soon. In the end GOD will have to destroy the BEAST. The founders had a little success, but that deposit in the bank of freedom is LONG GONE. Without another REVOLT like 1776, it’s over. We are under the RULE OF ROME. 

  • Anonymous

    Does Obama really think WE THE PEOPLE are actually stupid enough to believe this liars numbers? 

  • Lomax

    It is not just Obama’s budget that is phoney, Obama himself is as phoney as they come from top to bottom. This idiot should never have been let into politics at all, which tells you a lot about the Dumbocrat party. November is comming. Vote this idiot out of the White House!

  • Jthres

    Jack Lew must think we are all stupid like the democrats who believe in his budget lies. What is wrong with cutting spending and balancing our budget. The deficit and debt will grow significantly under Obama’s budget plan and will move us closer to the Geece debacle. Anyone that thinks what is happening in Greece can’t happen here is a fool. We need a leader not a community organizer and someone equivilent to a major corporation CEO to fix this budget mess. SPENDING IS THE PROBLEM!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • Anonymous

    Obama’s mouth is wide open in the picture.  Must be a bunch of lies spewing out again.

  • http://www.facebook.com/people/Erik-Osbun/100001215333702 Erik Osbun

    Yep, PHONY describes his stab at economics.  It’s nothing more than a mask for the plot with George Soros to devalue the dollar.  

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  • Jerrysemenick

    There’s only one way to bring America to her knee’s that’s from the inside,well lets all guess who that is

  • http://www.facebook.com/people/Tim-Jones/100000751061728 Tim Jones

    If you read the liberal forums you can see that most of them are completely gullible and ignorant.  I would say stupid but I most admit that even intelligent people are mislead and believe their sources over anything else.  I am a Christian and usually would not take to quoting the bible because it leads to arguments on these forums.  But I think  a big “I told you so.” from God himself will be coming one day.  Obama may actually win again due to the clear nature of those who wish him to remain in office.  I just can not understand them no more than I can understand a mass murderer (may not be the best analogy but I can not understand them anyway).  Pure lunacy is all I can see.

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  • Death2Unions

    Accept REALITY people!  America is now Officially a Marxist State.  It is too late!

  • Irbob

     YES!

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