The White House has come up with its newest budget plan—if indeed “plan” is a proper word for it. California Republican Congressman John Campbell recently outlined just what this budget will do [forgive the extensive quote, but I want to make sure you are aware of the enormity of what is being proposed]:
Debt: The President’s Budget doubles the debt in 5 years and triples it by FY 2019, from FY2008 levels. It aims to push the debt to $9.3 trillion this year, or 63.6% of gross domestic product (GDP). This would be the largest debt in history, and the largest debt as a share of our economy in 59 years.
You may remember Congress passed a debt limit increase just prior to the holidays, but under this budget, that debt limit will again have to be increased before October 1, 2011. The interest alone on this debt will reach $840 billion in 2020.
Deficits: This budget boosts the deficit to a record level this year, to $1.6 trillion or 10.6% of GDP. To put this in context, this is the largest deficit as a share of the economy since the Second World War.
Taxes: By the White House’s own estimates, the budget increases taxes by more than $2 trillion over 10 years – this of course excludes the impact on revenue of the costly Cap-and –Trade proposals (which amounts to $834 billion by CBO’s estimate of the House version, in case you were wondering).
Contrary to previous statements made by President Obama, he is indeed attempting to increase taxes on those earning less than $250,000 including the new cap-and-trade taxes, and a tax on those who do not purchase health insurance.
If you can comprehend what the congressman is saying, this is unprecedented. It appear that Obama is not the least bit chastened by his polls, the distaste with which the deficits are being received, or the upswing in Republican political fortunes. He is not deterred in his goals:
How many times do the American people have to say “No”?
The overall philosophy still seems to be that we can spend our way to prosperity:
Remember that famous photograph at the end of World War II? Here’s a new version:
And to round out our trek through the latest insightful political cartoons . . .
The debt clock currently says that each person in the United States owes more than $40,000. That’s what each person would have to pay to get rid of the debt we’ve accumulated. It’s time for this to stop. Obama’s budget proposal needs to be Dead on Arrival in the Congress.