By Susan Duclos
"Though the President has said his budget plan would help 'pay down the
debt' and represents a “balanced approach” to $4 trillion in deficit
reduction, both his budget and his fiscal cliff proposal offered by
Secretary Geithner achieve only $400 billion in 10-year savings—meaning
that the United States will accumulate $8.6 trillion in new gross debt
instead of $9 trillion. Rather than using higher taxes to reduce the
deficit, the President’s $1.6 trillion tax hike funds a $1.2 trillion
spending increase consisting of: new stimulus measures (at a cost of $50
billion), an unpaid for “doc fix” (almost $400 billion), a continuation
of the payroll holiday ($90 billion) and extended unemployment
insurance ($26 billion), and, most significantly, the complete repeal of
half of the BCA spending cuts. All these increases are only partially
offset by a $600 billion spending cut, resulting in a net $1.2 trillion
spending increase. His tax increase thus nets only $400 billion in
reduced deficits, allowing the debt of the United States to climb past
$25 trillion over the next decade."
That ladies and gentlemen is Obama's idea of "balance."
Is it any wonder no one is taking his proposals seriously?
H/T TWS and US Senate Committee on the Budget/Charts