Weekly Columns

Another Budget Failure

f t # e
Washington, February 15, 2012 | comments

On Monday, President Obama released his $3.8 trillion fiscal year (FY) 2013 budget proposal containing many similarities to his FY 2012 budget that was overwhelmingly rejected by the Senate by a vote of 97-0.   If Congress were to adopt the president’s budget, we are looking at dangerous levels of debt, exceeding 100 percent of Gross Domestic Product (GDP) every year for the next 10 years.  

Failing to fulfill his promise to cut the deficit in half by the end of his term, Obama instead proposed a fourth consecutive year of deficits greater than $1 trillion. Under President Obama’s watch, the government has accumulated the three largest annual budget deficits in our nation’s history.  Over $4.6 trillion has been added to the national debt since Obama took office, which is the most rapid increase of any president ever. 

Our nation’s economy is in a fragile state of recovery, which economists agree is the worst time to raise taxes.  However, President Obama is proposing $1.5 trillion in new taxes.  His plan would raise tax rates across the board on small business owners and entrepreneurs. We will not be able to create jobs if the government is acting as a roadblock to the job creators.

So how can the president predict any sort of realistic GDP growth in his plan when the entire country will be severely hit with higher taxes?  It is yet another unrealistic estimate in his deeply flawed budget proposal. Instead of cutting duplicative, wasteful and bloated government programs, the president plans to tax hardworking Americans. 

The president is also, once again, cutting Medicare in his proposal. It began with the Affordable Care Act when he cut $500 billion out of Medicare to pay for a new entitlement program for government-run health care.  Then, he created a rationing board known as the Independent Payment Advisory Board (IPAB) that is charged with cutting benefits that are not deemed to be cost effective.  Now, because these cuts have failed to save Medicare from bankruptcy, the president is again proposing doubling down and strengthening the IPAB to ration even more care.

So what are others saying about President Obama’s FY 2013 budget proposal? In an LA Times Editorial they stated, “The day after the Greek Parliament approved another round of deep spending cuts in the face of violent protests, President Obama released a budget proposal for the coming fiscal year that offers no real solution to the United States' long-term fiscal problems.” The Washington Post said, “The final budget of his first term does not reflect the leadership on issues of debt and deficit that Mr. Obama once vowed.”  An Editorial in Bloomberg states, “Do as I say, not as I do. That was the unwelcome message in President Barack Obama's federal budget for 2013.”

The unsustainable amount of government debt is so high that it is straining economic growth. Therefore, Congress must reject the president’s budget and pass a budget that will restore economic growth, create jobs and enact enforceable and meaningful cuts, in order to preserve our future.

f t # e