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Obama Uses Deficit Excuse To Hike Taxes

From an unfazed Reuters:

Highlights: Obama budget sees deficit soaring in 2010

By Alister Bull, Caren Bohan and Jeff Mason

February 1, 2010

WASHINGTON (Reuters) – President Barack Obama on Monday unveiled a budget that projected the 2010 deficit soaring to a post World War Two high of $1.56 trillion, or 10.6 percent of the economy, but falling steeply in following years to half that level by the time his term ends in 2012.

That is to say, Mr. Obama is promising the deficits will go down right after he is re-elected.

The following are highlights from the budget:

The budget forecasts cutting $1.2 trillion from the deficit over the next 10 years.

The largest saving will come from Obama’s plan to allow 2001 and 2003 tax cuts on wealthy American families earning more than $250,000 a year to lapse on schedule next year, boosting revenue by $678 billion over 10 years.

Also known as ‘raising taxes.’ And the projections happily assume that these ‘wealthy Americans’ will not change their ways to avoid this tax hike.

Obama has also proposed saving $250 billion from the budget by 2020 by imposing a three-year freeze starting in fiscal 2011 on domestic spending outside of national security.

Mr. Obama is freezing a tiny portion of the budget that he has already jacked up to astronomical levels. And so they will be frozen at these high levels.

The budget will identify 120 federal programs to curb, including the NASA space agency’s Constellation project to develop human spaceflight and return an American to the moon.

Funny how nobody in our watchdog media has noted that Mr. Obama is reneging on a campaign promise made back when Florida was very much in play between himself and Mrs. Clinton.

In addition, Obama seeks revenue of $90 billion from big financial firms via a fee to recoup losses taxpayers suffered when they bailed out the banking industry during the 2008 financial crisis. A further $40 billion over 10 years will be saved by eliminating subsidies for oil, gas and coal companies.

Again, things that used to be called ‘new taxes’ and ‘hikes’ of old taxes. And by all means we must punish our financial and energy sector. That is surely the best way to grow jobs.

– Obama plans to create a bipartisan fiscal commission to get the country’s finances in order by examining potential tax hikes and spending cuts, but the White House said the exact timing of the executive order was still being discussed.

– Commission will be charged with balancing the primary budget — excluding interest payments on debt — by 2015, which adds up to a deficit-to-GDP goal of 3 percent if those costs are included.

And that quaint notice of ‘separation of powers’ be damned.

$33 billion in tax credits aimed at small businesses who hire more workers or increase their payrolls, which Obama announced on Friday.

Never mind that a similar though larger effort by President Carter failed miserably.

$6 billion for clean energy investment, mainly focused in research and development.

Never mind that a third of such money in the stimulus went to foreign firms.

$4 billion for a new National Infrastructure Innovation and Finance fund

Never mind that the stimulus was supposed to be primarily for infrastructure – but somehow the money went instead to creating more government workers.

Extending the Making Work Pay tax credit for middle class families for another year for most American families, at a cost of $61.2 billion over the next decade. The credit phases out for people who make more than $75,000 a year or couples earning over $150,000.

More income redistribution. Mr. Obama is going to give $61.2 billion dollars to people whom he thinks deserve your money more than you do.

– Increasing child-care tax breaks, eliminating capital gains tax from new investments in small businesses and extending a break for small businesses to encourage investment.

Too little, too late.

– $33 billion for a 2010 supplemental request to cover Obama’s decision to deploy more troops to Afghanistan

Which Speaker of the House Nancy Pelosi has announced she will not fund.

$159.3 billion for 2011 to support ongoing foreign operations including Obama’s strategy in Afghanistan and Pakistan.

More income redistribution – this time on a global scale.

– Increasing Department of Defense family support programs by 3 percent to $8.8 billion.

Again, too little, too late. But at least it’s something.

The budget includes $734 million to help fund the deployment of up to 1,000 "Advanced Imaging Technology" screening machines at airports as well as new equipment to detect explosives in baggage.

So that our TSA employees will have some more fancy equipment they can ignore.

Allah forbid, we profile like those (Semites) the Israelis do.

This article was posted by Steve on Monday, February 1st, 2010. Comments are currently closed.

8 Responses to “Obama Uses Deficit Excuse To Hike Taxes”

  1. jobeth says:

    “Allah forbid, we profile like those (Semites) the Israelis do ”

    If israel wasn’t such a target I would seriously consider moving there, just to be surrounded by people with good ol’ common sense.

    Hey…I could just move to Texas! lol

  2. proreason says:

    $5 for lip gloss.

    Meanwhile the long march continues at full speed.

    But he is very offended if you call him a Marxist. And the Republicans certainly don’t want to offend his highness.

  3. tranquil.night says:

    Yup we really see Bambi’s definition of ‘middle’ in play here.

    Just wait until Spring when tax revenue unexpectedly is in great decline.

    “$33 billion in tax credits aimed at small businesses who hire more workers or increase their payrolls”

    Unless that’s going to pay each new worker’s salary in full, worthless. Consumers are still cautious and are going to bunker down even more this year as the debt levels and political climate thrust the economy into a double-dip. There’s still a lot of toxic credit out there that needs to and will be pushed off the books eventually – bad mortgages, bad businesses. Just like the Mortgage Relief operation, further damage will come to the people really in need and the aid will go to the people who might end up making things worse because they aren’t allowed to fail.

    What’d Rep. Ryan say the other day: “It’s the rhetoric of fiscal discipline with the policy of socialism”?

  4. White_Polluter says:

    We are so lucky to have the greatest leader in the history of mankind at the helm at this time. Just think, he is halving the deficit!!!! What a man!!!!! If I were a dog, I’d wag my tail!!!

    And that spending freeze? Why don’t the Republicans ever think of stuff like that? I know that McCain proposed a freeze, but that was the “hatchet” freeze and now we are getting the “scalpel” freeze. The “scalpel” freeze is sooooo much better!!!!

    Can we just all agree to name a street in every city after Obama. Sometimes I’m sorry that I have already been born, because now my parents can’t name me Barack Hussain.

    I’m so glad that we don’t have those terrible deficits like we did under the worst president in history, like that one in 2007 of $161 billion or the one in 2006 of $248 billion. Golly, math is hard!!! Too bad I don’t have time to study it, gotta watch the Grammy’s.

    • VMAN says:

      Yea man I’m with you. All those rich people gotta pay and what do we need to go to the moon for anyway. We all know it that bush guys fault.

  5. JohnMG says:

    …..”- $33 billion in tax credits aimed at small businesses who hire more workers…….”

    Hire more workers to do what??!! If the Moron would just stay out of the way, the market would heal itself. Maybe the reason his supposed ‘recovery’ is so sluggish is that all of the “dead wood” has been laid off, along with a lot of capable hands. But when it’s time to re-hire, the cream of the crop are the first to return while the ‘slugs’ languish.

    And another thing. Does it surprise anyone that consumer spending increased in the last quarter? Well it shouldn’t. Not if you’ve got a functioning brain. The increase in gasoline prices at the pump alone account for the modest uptick in the numbers. Obama hopes nobody knows this.

    • proreason says:

      good catch John.

      So that makes 3 completely artificial factors that combined to drive GDP up in Q4:

      – replenishment of inventories (generally thought to have contributed about 3% of the increase)
      – gorvernment spending (probably contributed another 1-2% of the increase), due to Porkulus and the growth in government workers doing busywork jobs for outrageous salaries.
      – increase in gasoline prices.

      I also wonder if the data is adjusted for the Christmas season, which is the season with the most spending.

      And, of course, the numbers will be quietely revised downward in a month or so.

      Bottom line, economic growth is a lie, just like everything else with the Monstrositration.

      Also notice that Porkulus 3 is in the works. Sounds like Obamy wants to keep those GDP #’s up until about November of this year !!! That will be good news for the capo contractors on the graft rolls.

    • JohnMG says:

      Another thing that will drive the numbers back down, pro, is the inevitable creep upward in the cost of goods and services that accompany increases in overhead. In my business (construction), just to use fuel costs as an example, the cost increase in diesel fuel gets added into every estimate that goes out the door. (It’s the same for my competition, so no one realizes an advantage in the hourly rates that must be factored into estimates.) But cost increases serve to depress those jobs that are not absolutely essential. Clients sit on their money or else can’t access funding to finance their projects, or both. Fewer jobs dictate lay-offs, increase unemployment claims, yield smaller net incomes, thus less spending…..a continuing downward spiral. But all of this lags the quarterly reporting periods by three to four months, often spilling over into the next quarter.

      Still, we shouldn’t expect the Moron to know these things. He hasn’t so much as run a lemonade stand. The only thing he really knows how to run is his mouth.

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