Obama Delivers Catastrophic New Budget, Then Declares That Government Must “Live Within It’s Means”

February 14, 2011 11:11 pm 3 comments

On the most critical issue of his presidency – the long-term fiscal sustainability of the United States, Barack Obama just voted “present”.

Today Obama delivered a mind numbing budget that includes $26.3 trillion in NEW debt over the next decade. 2011 will see the biggest one-year debt jump in history, or nearly $2 trillion, to reach $15.476 trillion by Sept. 30, the end of the fiscal year. That would be 102.6 percent of GDP – the first time since World War II that dubious figure has been reached. On top of this, Obama plans on strapping our families with a ten-year, $1.5 trillion tax hike.

Jake Tapper of ABC stated today that  “At no point in the president’s 10-year projection would the U.S. government spend less than it’s taking in….The plan shows that Obama will not take the lead on any aggressive measure to eliminate the nation’s $14 trillion debt.”

ATR.org outlines the “low lights” of this tax hike nightmare:

Under the Obama budget, tax revenues will grow from 14.4% of GDP in 2011 to 20% of GDP in 2021.  By comparison, the historical average is only 18% of GDP.

  • Raising the top marginal income tax rate (at which a majority of small business profits face taxation) from 35% to 39.6%.  This is a $709 billion/10 year tax hike
  • Raising the capital gains and dividends rate from 15% to 20%
  • Raising the death tax rate from 35% to 45% and lowering the death tax exemption amount from $5 million ($10 million for couples) to $3.5 million.  This is a $98 billion/ten year tax hike
  • Capping the value of itemized deductions at the 28% bracket rate.  This will effectively cut tax deductions for mortgage interest, charitable contributions, property taxes, state and local income or sales taxes, out-of-pocket medical expenses, and unreimbursed employee business expenses.  A new means-tested phaseout of itemized deductions limits them even more.  This is a $321 billion/ten year tax hike
  • New bank taxes totaling $33 billion over ten years
  • New international corporate tax hikes totaling $129 billion over ten years
  • New life insurance company taxes totaling $14 billion over ten years
  • Massive new taxes on energy, including LIFO repeal, Superfund, domestic energy manufacturing, and many others totaling $120 billion over ten years
  • Increasing unemployment payroll taxes by $15 billion over ten years
  • Taxing management capital gains in an investment partnership (“carried interest”) as ordinary income.  This is a tax hike of $15 billion over ten years
  • A giveaway to the trial lawyers—not letting companies deduct the cost of punitive damages from a lawsuit settlement.  This is a tax hike of $300 million over ten years
  • Increasing tax penalties, information reporting, and IRS information sharing.  This is a ten-year tax hike of $20 billion.
  • The “tax relief” in the budget is mostly just an extension of present law, and also some refundable credit outlay spending in the tax code.  There is virtually no new tax relief relative to present law in the President’s budget.

The “tax relief” in the budget is mostly just an extension of present law, and also some refundable credit outlay spending in the tax code. There is virtually no new tax relief relative to present law in the President’s budget.

Even Obama supporter Andrew Sullivan has seen the president for what he truly is after this insulting financial failure.

because this president is too weak, too cautious, too beholden to politics over policy to lead. In this budget, in his refusal to do anything concrete to tackle the looming entitlement debt, in his failure to address the generational injustice, in his blithe indifference to the increasing danger of default, he has betrayed those of us who took him to be a serious president prepared to put the good of the country before his short term political interests. Like his State of the Union, this budget is good short term politics but such a massive pile of fiscal bull***t it makes it perfectly clear that Obama is kicking this vital issue down the road.

To all those under 30 who worked so hard to get this man elected, know this: he just screwed you over. He thinks you’re fools. Either the US will go into default because of Obama’s cowardice, or you will be paying far far more for far far less because this president has no courage when it counts. He let you down. On the critical issue of America’s fiscal crisis, he represents no hope and no change. Just the same old Washington politics he once promised to end.

With ice water in his veins, the president is still able to stand before his teleprompter and declare that the “government must live within it’s means, and start taking responsibility for it’s deficits.” Faced with a president and congress more than willing to strap your children and grandchildren with debt, high taxes and a dire economy caused by  THEIR glutenous spending, it will take a miracle for us to turn this great nation around. We can start by sending Obama to the unemployment line in 2012.

3 Comments

  • And yet we can’t find enough Republicans in the House to even cut a mere $100 billion as a start to economic reform.

    By all rights, we should be cutting whatever it takes to avoid raising the debt ceiling in the next few months, plus $70 billion extra to pay for the Bush tax extension to the wealthy Chapter S businesses.

    Plus, find a part of the $703 billion hiding in government department’s accounts as “unobligated balances” to fund H.R. 589, to extend UE benefits for an additional 14 weeks.

    ex animo
    davidfarrar

  • Let me destroy you so I can step in and save you……. and I thought Nancy Pelosi was the most dangerous politician I had ever seen……

  • Wow, excellent article and fantastic examples, Liam! You hit on a lot of great points here, this will be a resource I can come back to often.perfeckt

Leave a Reply


Other News

  • Christian Persecution World Russia Declares ‘Holy War’ On Islamic State

    Russia Declares ‘Holy War’ On Islamic State

    The Orthodox Christian Church, which is reclaiming its traditional role in post-Soviet Russia, has just described its government’s fight against the Islamic State and other jihadi groups in Syria as a “holy war.”

    According to Vsevolod Chaplin, head of the Church’s Public Affairs Department,

    The fight with terrorism is a holy battle and today our country is perhaps the most active force in the world fighting it. The Russian Federation has made a responsible decision on the use of armed forces to defend the People of Syria from the sorrows caused by the arbitrariness of terrorists. Christians are suffering in the region with the kidnapping of clerics and the destruction of churches. Muslims are suffering no less.

    This is not a pretext to justify intervention in Syria.

    Read more →
  • 2nd Amendment Faith Oregon Shooting – When Tragedy Happens Let’s Focus On The Cause And Not The Tools Used

    Oregon Shooting – When Tragedy Happens Let’s Focus On The Cause And Not The Tools Used

    While the blood was still dripping from those martyrs who, in front of an evil man armed with a gun, asked them if they were Christians and those strong in the faith said they were. He shot them in the head. While those who were lost or weak said nothing he spared their lives and shot them in their legs.

    Barrack Hussein Obama angrily ran to the cameras to use this opportunity to say that guns being in the hands of the law-abiding Americans is the problem, and we need to restrict the 2nd amendment to spare the lives of “we the people.”

    This is nuts; guns do not kill people, people kill people! You can test this fact in your own home right now. (Do not worry no one will get hurt).

    Read more →
  • 2nd Amendment Faith Gun Free Zones Are Killing Zones

    Gun Free Zones Are Killing Zones

    How did you feel when you heard of the shootings in Oregon this week? Was the first thing that came to your mind the thought that if we only had stricter gun control legislation, this kind of tragedy could have been prevented?

    If you listened to idiotic liberals, like President Barack “Insane” Obama, you might believe that. It is my contention that liberalism is a mental disorder based on the rejection of God and His principles, and extreme irresponsibility.

    Read more →
  • National Where’s the Beef, in Republican candidates, in 2015?

    Where’s the Beef, in Republican candidates, in 2015?

    What type of Republican Leader do you want in 2015?

    As we look at elections coming up quickly in 2015, as well as the very important 2016 election cycle, what type of “Republican” leaders do you want to shape the future of your county and country?

    Do you ever wonder why it is that the current crop of Republicans are not declaring, at every media interview, “These ills have been brought to you by the Democrat Party!” when speaking of Obamacare, the hordes of immigrants being allowed to destroy our country, the Iranian nuclear treaty, the “Black Lives Matter” racial division rhetoric, the attack on the defense of marriage, the 94 million Americans not currently in the work force,

    Read more →
  • National Child protection services Sentences Baby To Death ON 9/11/2015

    Child protection services Sentences Baby To Death ON 9/11/2015

    Child protection services should be self-explanatory based on the simplicity of its name. But they are doing exactly opposite of their name in many places. Wynne, Arkansas is one such place.

    A baby has been sentenced to death and will be executed on Friday, September 11, 2015 and Arkansas Department of HUMAN SERVICES (DHS) – Division of Children and Family Services- Central Office will facilitate the delivery of the baby’s 10-year-old to the abortion clinic.

    On August 29, 2015 20-year-old Justin Smith was arrested and charged with three counts of rape and one count of endangering the welfare of a minor. His “alleged” victim is a 10-year-old.

    Read more →