Tag Archives: Budget Deficit

Fact check of Obama’s budget: is there really $4 trillion in deficit reduction?

Here’s a story from the House Budget Committee, where Paul Ryan is the leader.

Paul Ryan made these two charts to help him discuss Obama’s new budget with Obama’s budget director.

Debt Increase in President's Budget
Debt Increase in President’s Budget

And:

Actual savings is 410 billion, not 4 trillion
Actual savings is 410 billion, not 4 trillion

Watch these clips to see Paul Ryan and Scott Garrett use the charts to do nasty things to Obama’s budget director.

Clip 1 of 3:

Clip 2 of 3:

Clip 3 of 3:

Guy Benson discusses both videos at Townhall.com.

Excerpt:

Ryan does a masterful job of puncturing Zients’ arguments, but let’s reiterate a few points that may have gotten lost in the shuffle.

(1) The White House is claiming that spending cuts within the Budget Control Act of 2011 — which is entirely separate from the FY 2013 budget — should count as savings “achieved” by their new proposal.  This is silly on its face, but crosses into laughable territory when one recalls that throughout much of the debt fight, President Obama adamantly opposed a cuts-for-debt-ceiling-hike quid pro quo.  He was on the record in favor of — demanding, in fact — zero cuts. Republicans dragged him into the BCA against his will; now he’s trying to take credit for that past action in next year’s budget.

(2) The White House says Obama’s budget “saves” $850 Billion by not fighting two wars at peak spending levels for another full decade.  This money was never proposed because the scenario is pure fiction.  These risible “savings” represent a White House bear-hug of Moon-Yogurt accounting. “Heaven help us” is right.

(3) Zients’ isn’t able to recall how much money this budget adds to the national debt.  You’d think the White House Budget Director would have that figure committed to memory (he likely does, but doesn’t want to admit it on camera), but let’s help him out:  The budget he’s defending adds nearly $11 Trillion to the debt, on top of the roughly $5 Trillion increase over which this president has already presided.  I seem to recall an infamous Right-wing zealot calling this sort of governance “unpatriotic.”

Next, we have Rep. Scott Garrett, a strong conservative from Northern New Jersey, asking Zients when the president’s budget comes into balance.  Zients refuses to directly respond to the question, perhaps because the correct answer is “never”…

Indeed, the closest Obama’s budget ever comes to balancing (expenses = revenues) within the ten-year projection window is 2017’s annual deficit of $617 Billion, which is still more than double the size of President Bush’s average annual deficit. Finally, Garrett lures Zients into a trap over Obamacare.  Garrett asks if a family making less than $250,000 per year (“the rich” cut off) is subject to a tax increase if they fail to comply with Obamacare’s individual mandate…

The president sold Obamacare to the public by characterizing the resulting mandatory pay-out as a “fine,” not a tax increase.  He even mocked George Stephanopoulos’ suggestion that it met the dictionary definition of a tax hike.  Once the law passed, however, the administration’s lawyers pulled an about-face and have defended the mandate in court by arguing that the fine is, in fact, a tax increase after all.  Zients has apparently reverted back to the outmoded argument, thus undermining his own administration’s legal defense of their signature “accomplishment.”

What I find frustrating is the media does such a poor job of vetting these “4 trillion dollar” claims that Obama makes. Sometimes, I wonder why anyone listens to mainstream media at all. What do you really learn?

CBO report predicts 30% higher taxes and trillion-plus dollar deficit

CNS News reports.

Excerpt:

The amount of money the federal government takes out of the U.S. economy in taxes will increase by more than 30 percent between 2012 and 2014, according to the Budget and Economic Outlook published today by the CBO.

At the same time, according to CBO, the economy will remain sluggish, partly because of higher taxes.

“In particular, between 2012 and 2014, revenues in CBO’s baseline shoot up by more than 30 percent,” said CBO, “mostly because of the recent or scheduled expirations of tax provisions, such as those that lower income tax rates and limit the reach of the alternative minimum tax (AMT), and the imposition of new taxes, fees, and penalties that are scheduled to go into effect.”

The U.S. economy, CBO projects, will perform “below its potential” for another six years and unemployment will remain above 7 percent for another three.

Fox News reports that the deficit will remain above 1 trillion dollars.

Excerpt:

A new budget report released Tuesday predicts the U.S. government will run a $1.1 trillion deficit in the fiscal year that ends in September, the fourth year in a row over $1 trillion, though a slight dip from last year.

[…]The report is yet another reminder of the perilous fiscal situation the government is in, but it is commonly assumed that President Barack Obama and lawmakers in Congress that little will be accomplished on the deficit issue during an election year.

[…]”Four straight years of trillion-dollar deficits, no credible plan to lift the crushing burden of debt,” said House Budget Committee Chairman Paul Ryan, a Republican. “The president and his party’s leaders have fallen short in their duty to tackle our generation’s most pressing fiscal and economic challenges.”

“We will not solve this problem unless both sides, Democrats and Republicans, are willing to move off their fixed positions and find common ground,” said Senate Budget Committee Chairman Kent Conrad, a Democrat. “Republicans must be willing to put [tax increases] on the table.”

The study also predicts modest economic growth of 2 percent this year and forecasts that the unemployment rate will remain above 8 percent this year and next. That is based on an assumption that President Barack Obama will fail to win renewal of payroll tax cuts and jobless benefits by the end of next month.

That jobless rate is higher than the rates that contributed to losses by Presidents Jimmy Carter (7.5 percent) and George H.W. Bush (7.4 percent). The study predicts unemployment to remain above roughly 5 percent — until 2016. The agency also predicts that unemployment will remain at 7 percent or above through 2015

Deficits in 2007 under George W. Bush were $160 billion and the unemployment rate was around 4-5%.

The CBO report also shows that the real unemployment rate is 10%.

Michele Bachmann takes on NBC leftist David Gregory on Meet the Press

From Newsbusters. (14 minutes)

Here’s the partial transcript:

MICHELE BACHMANN: When I came into Congress in January of 2007, the country was $8.67 trillion in debt; today it’s $15 trillion. Next year it’ll be $17 trillion. We’re acting like Greece and like Italy, and that’s what people are frustrated with. They want us to act like a first world nation, not like what President Barack Obama’s doing. He’s acting like we’re a banana republic. We’ve got to get our act together and stop spending money that we don’t have.

DAVID GREGORY: You’re not – I mean, you’re seriously calling the United States acting like a banana republic compared to the sort of debt issues that, that the Eurozone countries have had?

BACHMANN: What, what I’m doing is I’m – what I’m doing is saying that what – the decisions that Barack Obama is making is acting like a banana republic. It’s absolutely irresponsible what President Obama is doing to get behind measures to, to increase spending to such a level that we’re going into debt $1.5 trillion every year. This compares to President George Bush. Back in 2007, our debt for the entire year was $160 billion.

GREGORY: Congresswoman, that just misstates the record.

BACHMANN: Well, we topped that just in the month of November alone.

GREGORY: I mean, the Bush presidency, the-

BACHMANN: There’s no comparison. We’re talking-

GREGORY: -the, the debt – wait a minute, Congresswoman.

BACHMANN: David, let me just finish.

GREGORY: No, wait a minute. I just want to stop you for accuracy.

BACHMANN: Let me just finish. We’re talking-

GREGORY: For accuracy, Congresswoman.

BACHMANN: -we’re talking 10 times.

GREGORY: For accuracy, the debt exploded under the Bush administration.

BACHMANN: For accuracy. For accuracy. David, David, then, then let me finish. Do a comparison. I agree with you that there was too much money that was spent under George Bush.  But for the year 2007, the debt for the year was $160 billion. The debt for this last year was about $1 1/2 trillion. That’s almost 10 times more in debt than George Bush. And just for the month of – for the month of, I think it’s November of this year, it was more than the entire year for 2007.  So there’s no question that the debt has just skyrocketed under, under President Obama in comparison to George Bush.

GREGORY: Let me just point out, I don’t want to appear to be cutting you off. Sometimes the satellite delay can exacerbate that, so I wanted to make sure you could finish your point.

Can you imagine that DAVID GREGORY doesn’t even know what the deficit graph looks like?

Here it is:

Last Republican budget was in 2007
Last Republican budget was in 2007

The last Republican budget was 2007. The deficit was 160 billion. It’s almost TEN TIMES that under Obama. The Democrats took over the House and Senate in the 2006 mid-term elections. Doesn’t David Gregory know that? Does anyone in the mainstream media know ANYTHING?