Obama’s budget carries 1.75 trillion in deficit spending

“the time has come to usher in a new era - a  new era of responsibility”
This was Obama’s statement right before he released his guidelines for the budget for the coming years.  His 2009 budget of nearly $4 trillion comes with a deficit of $1.75 trillion.  The 2010 budget would also have a deficit of over a trillion dollars as well as 2011.  In 2012 the deficit is estimated to be $581 Billion, which is still about $130 billion more than the record deficit set last year in the Bush administration.

Obama’s budget carries 1.75 trillion in deficit spending

And these are very optimistic numbers.  The Obama team’s estimations are reliant upon assumptions that the economy is going to grow very rapidly in the next 4 years.  This counters what many economists outside the administration are forecasting.  Especially since they plan to increase taxes.
More and more Obama is revealing that despite his rhetoric, he really does believe in big government and large government social programs.  We have Social Security and Medicare and now we are trying to add additional programs such as Universal Healthcare.  These programs are a proven drain on the economy so why not add a few more.

The universal healthcare plans in Obama’s budget will cost the American taxpayer upwards of $1.5 trillion dollars…if that estimate is accurate.  I imagine it will cost more.  Obama plans to pay for this by raising $634 billion over the next 10 years by raising taxes on individuals making over 200,000 and couples over 250,000.

There are a couple obvious problems with this.  The first is that $634 billion is not $1.5 trillion and currently no plan has been released to determine where the rest of that money will come from.  The second is that about 50% of small business owners fall in the tax category that Obama wants to overtax.

Obama also plans on getting an additional $353 billion in tax revenue from business.  Most of this money will be from trying to take as much as he can from the oil and natural gas industry.  These increases will simply be passed on to the consumer in the form of increased electricity and gas prices.
One controversial policy that is being attacked by both sides is Obama’s plans to reduce charitable giving tax deductions.  Groups are afraid that giving to non-governmental charity organizations will drop off dramatically.  Thus far the Obama administrations response to this criticism is that they provided $100 million to support nonprofits.  That falls in line with some of the other ridiculous reasoning from this administration.

One of the final ways Obama plans to raise money is with greenhouse gas cap and trade laws.  But like many of the other tax increases, it is not to reduce the deficit.  He already has plans to spend this money.  $15 Billion will join the other hundreds of Billions from the stimulus for clean energy.  $60 Billion will be used for tax credits ( I assume refundable) for lower and middle income people.  For those not familiar with trade and cap, it is basically sets emission limits and forces companies to buy permits if they cannot meet these limits.  If you really think about it, it is just a way to formalize and legitimize government bribery.

When it comes down to it, this budget is anything but responsible and most taxpayers are starting to realize this as mock tea parties are being performed all over the country.  Our government spending is starting to get out of control and instead of reducing government, we are expanding it.  We are reverting back to failed policies of liberals past.

As we can see by these projected deficits, even Obama’s infamous top 2% cannot carry our current government’s spending.  They will eventually have to come after the middle class to pay for their programs.  That or reduce and eliminate these programs.

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