By Romina Coccia and Amy Payne, Published in The Foundry, April 12, 2013
President Obama is marketing his new budget by saying it has “more than $2 in spending cuts for every $1 of new revenue.” Is this true?
In a word, no.
In fact, his spending increases and advertised spending cuts cancel each other out—leaving only a massive tax increase.
The President cancels sequestration’s spending cuts—therefore raising spending—by the same amount that he reduces spending. When that’s done, all that’s left is a $1.1 trillion tax hike.
Here’s the math:
- The President increases spending by $1.1 trillion by cancelling sequestration.Sequestration, the automatic spending cuts adopted in the Budget Control Act of August 2011, is already in effect. Thus, cancelling these reductions in spending increases spending by $1.1 trillion over 10 years.
- The President reduces spending by $1.1 trillion. The President lists a number of additional spending reductions based on a December offer to Speaker of the House John Boehner (R-OH). These total about $1.1 trillion and are completely offset by the cancellation of sequestration.
- The President raises taxes by $1.1 trillion. The official total tax increase in President Obama’s budget is available in the Treasury Department’s “Green Book.” Treasury scores the total net tax increase from all President Obama’s tax policies at more than $1.1 trillion over 10 years.
So President Obama’s spending cut claim doesn’t hold up, and Americans get stuck with a $1.1 trillion tax bill. Real math hurts.
While President Obama is traveling across the nation campaigning against sequestration at the very last minute, the economy is working through a tax increase nearly twice the size of the sequestration cuts for fiscal year (FY) 2013. Continue reading
D.C.: Cut the Drama. Do Your Job.Americans are sick and tired of yet another ginned-up crisis. D.C. needs to grow up, get to work, and live within its means. The real economic Armageddon looming before us is our runaway debt, not the sequester, which the President advocated for and signed into law and is now running around denouncing because he never had any genuine intention of reining in his reckless spending. Continue reading
By Rachel Alexander
As predicted, the Democrats’ refusal to cut any spending other than the military only delayed the inevitable. Now, as is already taking place in Greece, France and Spain, deep cuts must take place or the government will shut down. The fiscal cliff agreement and the Budget Control Act of 2011 called for sequestration on March 1st if an agreement on how to pay down the deficit was not reached. The sequestration mandates $1.2 trillion in spending cuts across the board throughout most of the federal government over the next decade. The only way to prevent sequestration is if the Democrats and Republicans come up with a compromise this week, which could involve tax increases, agreed-upon cuts, or both. Continue reading
By Paul Scicchitano (Printed in Newsmax)
With time once again running out to avoid $1.2 trillion in automatic spending cuts, conservative activist Grover Norquist, who invented the “anti-tax increase” tax pledge embraced by Republicans, tells Newsmax TV’s Steve Malzberg that conservative legislators should allow the cuts to proceed barring an 11th-hour shift in the president’s negotiating tactics. Continue reading