Research Briefing

Debt Problem? What Debt Problem?

OBAMA’S FY2013 BUDGET KEEPS ON SPENDING RIGHT PAST THE FISCAL GRAVEYARD AWAITING AMERICA

“This Budget Has $1.9 Trillion In Tax Increases/Revenue Raisers And It Still A) Adds $6.7 Trillion In New Debt From 2013 To 2022, And B) Has Debt As A Share Of GDP Rising From 74.2 Percent This Year To 76.5 Percent In 2022. Wow.” (Jim Pethokoukis, “First Thoughts On The New Obama Budget,” The American’s “The Enterprise,” 2/13/12)

• Only 16 Percent Of Obama’s $707 Billion In Net Deficit Reduction Proposals Is Spending Cuts. “Let’s look at just what is skedded to happen between now the end of a second Obama term. Obama proposes $707 billion in ‘net deficit reduction proposals.’ Of that amount, only 16 percent is spending cuts.” (Jim Pethokoukis, “First Thoughts On The New Obama Budget,” The American’s “The Enterprise,” 2/13/12)

Obama’s Budget Imposes $156 Billion In Government Fees. “Obama’s plan would impose $156 billion in new or expanded government fees including higher Medicare premiums for wealthier beneficiaries beginning in 2017. It would also increase the terrorism-security fee charged to airline passengers as well as the premiums paid by companies for federal pension insurance, among other changes.”  (Roger Runningen and Brian Faler, “Obama Sends $3.8T Budget To Congress,” Bloomberg, 2/13/12)

“The President’s Outlook For Debt Reduction Has Deteriorated Markedly Since September.” “The president’s outlook for debt reduction has deteriorated markedly since September, when Obama told Congress that his proposals would hold annual deficits well under $600 billion after next year and permit the debt held by outside investors to rise to $17.7 trillion by 2021, or 73 percent of the overall economy.” (Lori Montgomery, “Obama Budget: National Debt Will Be $1 Trillion Higher In A Decade Than Previously Forecast,” The Washington Post, 2/13/12)

• Obama Budget: Debt Will Be “A Full $1 Trillion Higher” Than Predicted.  “The new 10-year blueprint shows annual deficits exceeding $600 billion every year except 2018. And the portion of the debt held by outside investors would grow to $18.7 trillion by 2021, or 76.5 percent of the economy — a full $1 trillion higher.” (Lori Montgomery, “Obama Budget: National Debt Will Be $1 Trillion Higher In A Decade Than Previously Forecast,” The Washington Post, 2/13/12)

The Budget “Never Spells Out Obama’s Much-Talked-About ‘Buffett Rule.’” “In the case of taxes, the budget never spells out Obama’s much-talked-about ‘Buffett rule’—-that all of the most wealthy must pay an effective tax rate of at least 30 percent.” (David Rogers, “Obama Rolls Out $3.8 Trillion Budget,” Politico, 2/13/12)

“The Budget Over All Captures Mr. Obama’s Effort To Define The 2012 Election Not As A Referendum On His Record, Which Puts Him On The Defensive.” “The budget over all captures Mr. Obama’s effort to define the 2012 election not as a referendum on his record, which puts him on the defensive if unemployment does not continue to come down, but as a choice between his priorities and those of Republicans, who reject any higher taxes and want to sharply reduce the size of government and remake its most popular programs, Medicare and Medicaid.” (Jackie Calmes, “Obama Budget Raises Taxes On The Rich To Spend On Jobs,” The New York Times, 2/13/12)

• Obama’s Budget Includes “More Partisan Asides Than Past Budgets.” “Reflecting Mr. Obama’s more confrontational approach toward Republicans generally in an election year, after three years of their obstruction, the budget text that accompanied the nitty-gritty spending and revenue details included more partisan asides than past budgets.” (Jackie Calmes, “Obama Budget Raises Taxes On The Rich To Spend On Jobs,” The New York Times, 2/13/12)