Saturday, February 28, 2009

Fiscal Insanity

I wrote a blog earlier this week that made the point that Barack Obama's assertion that he will reduce the federal debt doesn't add up. Since then I have ran across a couple of more articles that are noteworthy.

First is this article from Fox, White House Budget Plan Leaves Little Room for Error, Economists Warn. This is a good read that does justice to the argument that it will be hard for Obama accomplish what he says.

Economists and conservatives say President Obama's massive $3.55 trillion budget leaves little room for error, and it will be very hard for him to meet his tandem goals of cutting the deficit and sheltering middle-class families from tax increases.

Obama, who released details of his budget for fiscal 2010 on Thursday, said he foresees halving the deficit by 2013. But his budget calls for a $634 billion "reserve fund" to cover the costs of universal health care coverage over 10 years, as well as $200 billion for the wars in Iraq and Afghanistan through next fall and another contingency fund for the sickly financial sector on top of the $787 billion stimulus bill that he signed last week.

With all these expenditures, many are saying they doubt Obama can reach his deficit goal while keeping his pledge to raise taxes only on couples making more than $250,000 a year.

"He's going to have to start moving down the scale and raising taxes on people making $150,000, people making $100,000 and even people making $75,000," said economist Adam Lerrick, a scholar at the conservative American Enterprise Institute. "You have to increase taxes. It's very simple. You have to pay for this somehow."


For an even better read go to Mustang's site, Social Sense, a blog that I read frequently. This is one of the best accountings of fiscal hypocrisy of Democrats that I have read in a long while and everyone is strongly encouraged to check it out.

Have a good Saturday, I am out in the real world working to pay my mortgage.

5 comments:

cube said...

We're seeing a slowing down of business in my area. Everybody is feeling it.

Leslie said...

And today he just podcasted that he is going to take on the lobbyists and is promising dramatic change.

Great. Because we all have seen so far what his idea of change really is.

mksviews said...

"He's going to have to start moving down the scale and raising taxes on people making $150,000, people making $100,000 and even people making $75,000,"

That's what his opponents were saying back during the campaign, but no one wanted to listen, they just believed. It's only logical that taxes will have to slither further and further down the pay scale, they simply have to are more of the so called wealthy are taxed down into the middle class and tax revenue dries up.

"Have a good Saturday, I am out in the real world working to pay my mortgage."

And paying for obama's various pipe-dreams. We're in the same boat here Chuck, paying for the ignorance and laziness of other peoples decisions.

Chuck said...

Cube, Grand Rapids is usually got a good economy but we're slowing down too.

Leslie, I actually have an issue with the lobbyists being so arrogant

MK, the numbers never did add up.

kevin said...

Bush busts the budget = Bad

Obama busts the budget = CHANGE!

/MSM