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Tuesday, February 14, 2012

Obama's Budget Proposal - Seriously?

After having read the first dozen pages of this 256 page monstrosity, I have to agree with critics. It is a campaign paper. It's all about what he inherited, he talks about everything he's done for us and how he saved us from a Depression, and regarding the few shortfalls that the economy has presented, he says it's all congress's fault. He also not surprisingly talks about how people need to pay their "fair" share, blah blah blah.

The budget itself is laughable. While I don't have time to go through everything that's wrong with it, here are a few basics:

1. No cost cuts. The President can talk all he wants about cost cuts, but it's right there -and there are none - they keep rising in his own estimates. On average the President wants the budget to increase costs by $145 Million/year over the next 5 years, and +$200 Million/year over the next 10 years. It's right there folks - his own words - no cuts!!

2. GDP estimates are insane. +3.5%/yr real growth over the next 5 years (+5.3% nominal/yr) with each year getting better than the last. Anyone know what planet this guy is on?

3. Individual income taxes increase by 50% over the next 5 years. How? Even if tax cuts expire, it will only give us 1/5 of that amount. Where does the rest come from? This is even worse than his GDP estimates.

4. Corporate income taxes double from 2011 to 2012. How? And almost triple by 2014. Again, it seems like someone forgot to use their brain in making this estimate.

I don't have time to go over his overly verbose document, but if we just look at the basics, and understand that if his revenue estimates are too high, and his costs continue to increase, then we will continue with the giant Obama-deficits for years to come. Anything he says otherwise just can't be true if we are to believe his document.

Even more importantly, are we supposed to take this (or him) seriously?