Site for Free Markets and Free People

Saturday, February 21, 2009

Obama's Budget: DISASTER

Obama released his budget plans. He is determined to "get exploding deficits under control" (no, this is not a joke). Obama's solution to turn around the economy is to raise taxes on families making over $250K and on all businesses. Brilliant. He is also pushing ahead with free health care for everyone (in addition to free homes, free cars, free food, tv, utilities,...)

The budget also puts in place the building blocks of what administration officials say will be a broad restructuring of the U.S. health system, an effort aimed at covering some of the 46 million Americans who lack insurance while controlling costs and improving quality. [Read: Health care from the same people who brought us the IRS and U.S. Postal Service.]

The premise of Obama's budget is that tax payments as a percentage of the economy rise by 3 points and federal spending as a percentage of the economy drops by 4 points - both very hard to believe. The second point is a joke given his approval of the largest entitlement increase in the history of the country and the first point unlikely given Geithner's and Daschle's seeming approval with the idea of not paying taxes.

Almost as stunning as the budget is the media reporting of it. No "Biggest budget deficit in history" or "big spending offset by big tax increases" as you would have if Obama were a Republican. Very little focus or attention on new entitlements or health care nationalization. Instead, it's "vows to cut deficit by 1/2 over first term" (which although far-fetched would still give us a larger deficit than under any year of Bush's term).