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Obama To Half Deficit By End Of 1st Term

From the true believers at the New York Times:

Obama Has Plan to Slash Deficit, Despite Stimulus Bill

By JACKIE CALMES

February 22, 2009

WASHINGTON — After a string of costly bailout and stimulus measures, President Obama will set a goal this week to cut the annual deficit at least in half by the end of his term, administration officials said. The reduction would come in large part through Iraq troop withdrawals and higher taxes on the wealthy.

Mr. Obama’s budget outline, which he will release on Thursday, will also confirm his intention to deliver this year on ambitious campaign promises on health care and energy policy.

The president inherited a deficit for 2009 of about $1.2 trillion, which will rise to more than $1.5 trillion, given initial spending from his recently enacted stimulus package. His budget blueprint for the 2010 fiscal year, which begins Oct. 1, will include a 10-year projection showing the annual deficit declining to $533 billion in the 2013 fiscal year, the last year of his term, officials said…

Measured against the size of the economy, the projected $533 billion shortfall for 2013 would mean a reduction from a deficit equal to more than 10 percent of the gross domestic product — larger than any deficit since World War II — to 3 percent, which is the level that economists generally consider sustainable. Mr. Obama will project deficits at about that level through 2019, aides said.

In his weekly radio and Internet address on Saturday, Mr. Obama said his first budget was “sober in its assessments, honest in its accounting, and lays out in detail my strategy for investing in what we need, cutting what we don’t, and restoring fiscal discipline.” …

The president will propose to tax the investment income of hedge fund and private equity partners at ordinary income tax rates, which are now as high as 35 percent and could return to 39.6 percent under his plans, instead of at the capital gains rate, which is 15 percent at most

Mr. Obama will also call for letting the Bush tax cuts on income, dividends and capital gains lapse after 2010 for individuals who make more than $250,000 a year. But while the top rate for income would rise to 39.6 percent, the top rate for capital gains and dividends would be 20 percent…

As for war costs, Mr. Obama’s campaign projected that withdrawing combat troops from Iraq would save about $90 billion a year. But it is not clear how much any savings would be offset by increased spending in Afghanistan, where Mr. Obama has ordered an additional 17,000 troops, bringing the total there to 56,000.

As difficult as cutting the deficits will be, much of the reduction by the end of his term will simply reflect an end to spending from the two-year stimulus package and — assuming the economy recovers — higher tax revenues and lower expenditures for safety-net programs like unemployment compensation.

Mr. Obama will propose cutting a variety of programs, including the Medicare Advantage subsidies for insurance companies that cover seniors who can otherwise acquire health coverage directly from the government. Another target is spending on private contractors, especially for defense, which spiked during the Bush administration

On Monday Mr. Obama will hold a “fiscal responsibility summit” at the White House with members of Congress from both parties, economists, union leaders and business representatives…

Mr. Obama will suggest in his budget that expanding health coverage to the more than 46 million uninsured can be done without adding to the deficit, both by making cost-saving changes in the delivery of care and by raising revenues. Advisers declined to identify the tax source.

Changes to the health care system will require investments in disease prevention programs, health information technology and research on cost-effective treatments, among other steps. Some money was included in the stimulus package. Even so, many health analysts believe big savings cannot be realized soon.

On energy policy, Mr. Obama’s budget will show new revenues by 2012 from his proposal to require companies to buy permits from the government for greenhouse gas emissions above a certain cap. The Congressional Budget Office estimates that the permits would raise up to $300 billion a year by 2020.

Since companies would pass their costs on to customers, Mr. Obama would have the government use most of the revenues for relief to families to offset higher utility bills and related expenses. The remaining revenues would cover his proposals for $15 billion a year in spending and tax incentives to develop alternative energy.

We get a tip off about the mendacity in this New York Times article early on:

The president inherited a deficit for 2009 of about $1.2 trillion, which will rise to more than $1.5 trillion, given initial spending from his recently enacted stimulus package.

We are supposed to believe that Mr. Obama’s plan will only increase the deficit by $500 billion dollars?

After he has squandered trillions in “bailouts” and “stimulus” – and now “free universal healthcare” and “green energy”?

This must be some of that “sober” assessment and “honest” accounting that Mr. Obama was talking about.

At most it sounds like the plan is to call the end of the “bailouts” and “stimulus” in two years — cutting the deficit.

But when was the last time the government ever ended a (non-defense) spending program or a handout?

Do however note that Mr. Obama will be sure to cut defense. Note too his myriad plans to further destroy our capitalist system.

For no matter how anyone parses it, Mr. Obama’s plans somehow always come down weakening national security, giving government more control over our lives, and taking more money out of the private sector.

This article was posted by Steve on Sunday, February 22nd, 2009. Comments are currently closed.

38 Responses to “Obama To Half Deficit By End Of 1st Term”

  1. caligirl9 says:

    Didn’t Clinton say he was going to fix the daffacit too? (Misspelling intentional, trademark Ross Perot)

  2. oki2 says:

    My biggest (possibly irrational) fear is that in the end this all DOES work and he really IS the smartest person in the world… … naw…

  3. brad says:

    This is an experiment to see just how dumb the American public really is. Are we to believe anything a politician says after decades of fraud waste and abuse? After we witness year after year of our money being wasted on EVERY gov’t program that is as inefficient and abusive as it can possibly be?

    It is like being told yet again that Islam is the religion of peace…..when the evidence has always shown to be the contrary.

    It’s like a joke to them to see how many times people fall for this stuff.

  4. 1sttofight says:

    Yeah, the check is really in the mail…..

  5. TwilightZoned says:

    In his weekly radio and Internet address on Saturday, Mr. Obama said his first budget was “sober in its assessments, honest in its accounting, and lays out in detail my strategy for investing in what we need, cutting what we don’t, and restoring fiscal discipline.”

    Shouldn’t these words have been uttered and applied with the steal-from-us bill? (rhetorical question)

    The reduction would come in large part through Iraq troop withdrawals and higher taxes on the wealthy.

    Same old BS, just another day. And yes, we will become weaker militarily…a very scary thought.

    Seems the recently received e-mail with this as a bumper sticker applies here…One Big-Ass Mistake, America

    • MinnesotaRush says:

      Notice how his weekly b.s. sessions (Words … just words?) are entitled “Your Weekly Address” ? YOUR Weekly Address? YOURS???

      Uh uh! Like it’s a required show up and listen!?!? … a word (or 30 thousand) from his on high!?!? I don’t think so!!!

      Maybe they should be renamed to “Your Weekly Warnings”!!!

    • TwilightZoned says:

      Weekly warning…you got that right!

  6. curvyred says:

    Somehow his pontificating and empty rhetoric reminds me so very much of this:

    http://www.youtube.com/watch?v=LDPfW6qz01U

    “TCO man can”

  7. MinnesotaRush says:

    “Words …. just words???” …. yup!!! Sure are!

    The only reductions we’ll see will be in Defense – wouldn’t doubt he’ll try everything he can do draw those budgets down to all of about 20-30 bucks; afterall, his Private Citizen National Security force will be nicely funded thru the ACORN and miscellaneous/admin crap of the ‘stimulus bill’. But shhhhhhh .. don’t tell anybody ….

    This o-blah-blah character is not only without a clue; but dangerous as well. A bad mix.

    • TwilightZoned says:

      …”but dangerous as well”…yep, you nailed that one. Reminds of a saying I use all the time. He/She “doesn’t know enough to be helpful, just enough to be dangerous.”

  8. nascarnation says:

    All I can say is: borrow money at fixed rates my friends, because we are gonna have lots and lots of inflation.

    • A Mad Pole says:

      Better yet: do not borrow anything, do not enslave yourself to the lenders. Cut your spending, save as much as you can but do not keep the savings in Federal Reserve Notes that will be soon worth less than the paper they are being printed on. Think gold, think silver.

  9. Rusty Shackleford says:

    “Pay no attention to that man behind the curtain. The great and powerful O-blah-blah has SPOKEN!!!”

  10. Barbie says:

    Obama’s fixing it so the economy never recovers. This is terrible news for investors and people in general – and the stock market will show it tomorrow. I guess Obama’s SURPRISED not everyone welcomed his porkulus bill with open arms and he’s pretending to do something in order to backpedal a bit. Obama ran as a democrat who really had a socialist agenda, and his apologists said he was not a socialist. Now he’s using socialist tactics to try to re-ignite a capitalist system and it’s not going to work. The economy is going to get worse and even worse employment will result from this announcement – yet Obama will blame it all on Bush when it’s Obama’s blatant anti-business policies to blame. Well hope all the Obama voters enjoy their prolonged Obama unemployement.

    • oldswimcoach says:

      Roosevelt had Hoover, Obama has Bush. I think history is in the process of repeating itself.

      A normal recesion is about to become the 2nd great depression – due once again to government policies. This one may actually eclipse the 1930’s version.

    • AuntieAM says:

      Oldswimcoach, yes, this one will be worse in part because of the save the planet idiocy, which is an added ingredient to our woes this time.

  11. AuntieAM says:

    They put some of the worst news at the very bottom of the story. The greenhouse gas taxes are going to kill off what’s left of this economy. One wag on Fox this morning estimated that it would cost every household in the US between $4k and $6k per YEAR in utility bills. If it’s going to cost families that much, how much will it cost businesses? Businesses, including utility companies, cannot sustain those kinds of taxes, and will be forced to shut their doors. Utility companies, no doubt, will be nationalized.

    The man is either totally insane, or totally evil.

  12. VMAN says:

    Cook the books and lie. Cook the books and lie. Cook the books and lie. This guy didn’t study law he studied history. Al Capone was taken down by the IRS so how do you take down the people who control the IRS.

  13. JohnMG says:

    So if Obama intends to cut the deficit in half by the end of his term, but he has already doubled the deficit that was left by Bush, then we’ll arrive at the point of the Bush economy when Obama began his term.

    Aside from the fact that he can’t do it, that would make an Obama presidency a zero function. Except that he will have ruined the country in the process!

    • Rusty Shackleford says:

      For me, I’m just amazed at the fuzzy math alone. Going back to apples….

      If Biff has 5 apples and Sarah has 5 apples, and Barry takes both Biff’s and Sarah’s apples, he has 10 apples. But if he gives 2 apples to Sarah and 4 apples to Biff, and keeps 4 for himself, then Biff and Sarah have 20 apples.

      See how that works folks? For years I’ve agonized over the “If I say it is so, then it is so” mentality. Not just of liberals…but especially of liberals. Added to that, the notion that to put his words to any kind of test, litmus or otherwise, is “racist” and”hateful speech” not only turns my stomach but makes me furious.

      In less than one month….a record to be sure, this administration and the whole big-top circus has put us so far in upayable debt that we won’t be able to see straight for over 50 years. Longer if what’s left of our manufacturing base…such as it is….disappears altogether.

      The lessons were all there. Great Britain….and how they dealt with rising costs….

      Now a nation of consumers with no middle class, and the service jobs all taken by non-English speaking immigrants.

      That already sounds so familiar….And we’re going right down the same road with the cruise control on. In fact, with all the kids happily playing in the back seat singing songs.

    • If he works fast.. He can quadruple the upcoming deficit and THEN cut it to 25% by end of term.. YAY

  14. Gila Monster says:

    Hmmm?? Tell you what, if the Obamessiah passed attended any accounting, business or economics courses during his affirmative action empowerment programs at Occidental, Columbia or Harvard, he should ask for his the taxpayers’ money back because the man doesn’t have a clue.

    • proreason says:

      He doesn’t have even one person in his cabinet with even 1 day of business experience you know.

    • Proreason.. THAT is a strict DIS-Qualifier.. for ANY liberal cabinet.. A person with business experience would be more likely to say “NO” to the addled ideas emanating from his “one-ness.”

    • cjokry says:

      It’s mostly corporate lawyers and slumlord’s attorneys that run on the Dem. ticket. Why would they have anyone around with real work or management experience?

  15. A Mad Pole says:

    The communist in Poland (and pretty much everywhere they seized power) hated the private enterprise and did everything to wipe it out when they seized the power after World War II. They declared a war on the middle class, the inteligentsia (in the good, old-fashioned meaning of the word), entrepreneurs and religion in their quest for workers’ paradise on earth.

    We all know how that quest ended.

    Sounds like Obama is about to declare the same kind of war here, in the U.S.

    Lenin, Marx, Stalin and Hitler are all smiling in hell and high-fiving (or rather fist-bumping) like there is no tomorrow.

  16. U NO HOO says:

    Reminds me of the question:

    If there are 24 hours in a day, where does the night come from?

    “withdrawing combat troops from Iraq would save about $90 billion a year”

    Is that all?

    Leave the troops there, at least those troops will have a job. [Semi-sarcasm}

    • DGA says:

      Has anyone ever figured out how much the military cost a year to operate if it’s NOT deployed overseas, as in Iraq? If anyone knows this figure, subtract that amount from the amount spent in Iraq, and there you have your true cost to keep islamic terrorists at bay.

  17. proreason says:

    Of the orgasm of spending gleefully recited in this article, how many of the elements are mentioned in the Constitution?

    yep

    Defense

    Whose country do we live in?

  18. canary says:

    The $40 million art stimulous bust of Obama with his imaginary cigerette. No doubt the states the sculpt Obama’s bust will get the dole out. For the full body replica; no sculptures of him in military (no firearms period), no Air Force one pics, without another art stimulous, so I guess his image showing diversity when he dressed in muslim attire in 2006. And to think Hillary’s camp brought this to our attention, only now she’s playing diversity queen. I can see where the $40 million could go towards creating a new deck of cards, King,Queen,Joker,…

    http://images.google.com/images?hl=en&q=Obama%20in%20muslim%20attire%20picture&um=1&ie=UTF-8&sa=N&tab=wi

  19. A Mad Pole says:

    And about the photo: looking away and covering one’s mouth when speaking. Those are sure signs that the speaker is lying or hiding something.

  20. bill says:

    I assume they meant to say they inherited the Democrat Congress’ deficit of $1.2 trillion. Odd how they leave that part out.

  21. canary says:

    No one has mentioned the loss of soldiers lives and freedom now falling under ollah Obama. Where’s all the movie stars like Rosie O’s big mouths.

  22. cjokry says:

    At least he’s gonna tax the rich. We all hate those rich (straw-) people, don’t we? Yeah, tax the crap out of them! Our brand new savior has dreamed up new ideas for our economy, which requires stimulation, and they deserve to pay for them!

    It’s certainly not good enough that the richest 7% pay 50% of the taxes already; make them pay MORE! C’mon, richie rich riches, we have an economy to save and poor people to give money to, and “green” companies (that support Obama & Co. politically) to give your companies’ money to.

    It’s fine to help people in need, but poor people cannot give us jobs.

    Oh, and that bit about how he’s going to basically triple the taxes on investments in hedge funds, etc.,

    That’s gonna be the silver bullet in this economy’s head. Probly get to watch the first of the death rattles right away tomorrow on MSNBC. I can’t decide if he’s that ignorant or if he’s doing this on purpose.

    • proreason says:

      The people who should be taxed are the 100,000 idle rich aristocrats who sit on their asses, game the tax system and pay 1/60th of what you pay on a % basis.

      But The Moron’s plan isn’t to tax THEM, it is to tax YOU.

      Everything in his plan will tax people who work, and only people who work.

      Nothing will tax people with hidden, non-producing, inherited wealth.

      Want to raise a few hundred Billion in taxes? Make Municipal bonds taxable. Besides the few hundred billion, there would also be the side benefit of municipalities having to make their projects competitive with the private sector. Imagine the savings that would yield.

      Want to raise a few hundred Billion more in taxes? Throw a few billionaires in jail for hiding assets off-shore. Tax receipt would fall out of the trees like manna from heaven.

      But of course, I jest.

      Those people bought The Moron, lock stock and barrel.

      He will tax your eye teeth before he even glances at the 20 Trillion in non-producing assets that they control.

  23. U NO HOO says:

    Aint it Obama To HALVE Deficit By End Of Term?

    • JohnMG says:

      I caught that too. Then I thought maybe Obama should ‘have’ the deficit by the end of his term. He can have mine too.


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