Tag Archives: Discretionary Spending

CBO: Unemployment rises to 9.1% in 2013, health care spending doubles by 2022

Here are the raw numbers from the non-partisan Congressional Budget Office, as reported by CNS News:

The Congressional Budget Office (CBO) is projecting that if changes in federal taxing-and-spending policies already enacted and set to take effect at the beginning of next year do in fact take place, the unemployment rate will climb to 9.1 percent.

In a report released on Aug. 22, An Update to the Budget and Economic Outlook: Fiscal Years 2012 to 2022, CBO’s baseline projections show that by the fourth quarter of 2013 the national unemployment rate will be 9.1 percent.

[…]Widely referred to as the “fiscal cliff,” the expiration of the Bush tax cuts and over $1 trillion in automatic defense and discretionary cuts as a result of last year’s failed budget deal are set to take effect in January 2013.

[…]If no action is taken by Congress, current CBO projections show that unemployment will not return to pre-recession levels until 2017.

And more CBO: federal health care spending will exceed all discretionary spending by 2016:

Under current law, federal health care spending is on pace to exceed all discretionary spending by 2016, according to the Congressional Budget Office (CBO).

The change is due to large increases in Medicare and Medicaid spending and added spending under the Affordable Care Act (Obamacare) over the next decade, a feat the Tax Foundation calls a “truly unprecedented and scary” scenario.

The nonpartisan tax research group analyzed recent CBO projections of the budget for 2012 to 2022, finding that over the next decade Medicare spending will increase from $550 billion to $1.064 trillion, while Medicaid would more than double from $253 billion to $592 billion.

In addition, new exchanges and subsidies under Obamacare will force mandatory healthcare expenditures to grow from $25 billion to $181 billion in 2022.

“In total, healthcare entitlement spending is due to more than double, from $828 billion this year to $1.837 trillion in 2022,” according to the Tax Foundation.

“This means healthcare spending will overtake all discretionary spending in 2016 – Obama’s last year in office if reelected,” the group said.

And more CBO: taxes will shoot up by more than 30% between 2012 and 2014:

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.

And the GAO reports that the Obama administration has waived work requirements for welfare programs, which reduces revenues from employee income taxes and increases spending on welfare programs.

Now you might expect that the Democrats would have some bold plan to tackle unemployment, spending and high taxes. And they do!

Bold policy ideas at the Democrat National Convention

Take a look at this video on bold, innovative tax policy from the DNC convention:

That will fix unemployment for sure.

And they want to augment that tax policy with some reasonable pro-growth regulations:

If you don’t think that this is a good plan to solve our economic problems, then Democrats will say that you’re a racist homophobic Islamophobic sexist bigot.

Obama’s spending freeze saves 250 billion out of 43 trillion in spending over 10 years

Article from Investors Business Daily.

Excerpt:

The latest idea for reining in the federal government’s runaway spending is to “freeze” nondefense discretionary outlays for three years. That may sound good, but it’s just another gimmick.

We try not to be too cynical about politics, but the White House’s proposed freeze will do nothing to address America’s budget problems.

Last year alone, the U.S. deficit hit $1.4 trillion on record spending of $3.7 trillion. The freeze will apply only to $447 billion in spending — just 12% of the total. Next year, if the freeze goes into effect, it will save just $15 billion — and $250 billion over 10 years.

Compared with the $9 trillion in new debt and $43 trillion in spending expected over the next decade, it’s a pittance — not even a down payment on our gaping shortfalls.

[…]According to the CBO, the $250 billion in savings amounts to a negligible 0.5% of the $43 trillion in spending over the next decade. But it will no doubt be put to good political use, as congressional Democrats suddenly style themselves as fiscal conservatives during the 2010 campaign for passing a meaningless freeze.

Let me be clear. Obama never has been a fiscal conservative, and he isn’t going to start to be one now. It’s just words on a teleprompter that he reads so that you stop calling your representatives.

Democrats to expand porkulus with 410 billion omnibus bill?

The Democrats aren’t done redistributing wealth to their constituencies yet. They want an increase in discretionary spending that Republicans say will cost another 410 billion dollars on top of the auto-bailout and the spendulus!

Wall Street Journal reports on the story here:

Congress returns next week to take up another spending bill, this one with a price tag of $410 billion. Unlike the emergency recovery plan rushed through Capitol Hill in a matter of weeks, this covers the regular functions of government, from education to agriculture.

The “omnibus” bill would increase discretionary spending — funds for programs that aren’t benefits like Social Security and Medicare — by 8.7% over 2008. “This would be the largest increase in discretionary spending since at least 1978 — with the exception of a 10% boost in 2002, shortly after the Sept. 11 attacks — according to figures from the White House Office of Management and Budget.

And it’s worse… the omnibus bill will contain loads of earmarks and pork:

President Barack Obama and congressional Democratic leaders boasted that the stimulus bill had no “earmarks,” or special projects inserted by lawmakers for their home areas. In contrast, the new spending bill will have billions of dollars in such projects.

Taxpayers for Common Sense, a nonpartisan fiscal watchdog group, has listed several thousand earmarks in bills that have passed a subcommittee or full committee and are being combined into the final version. Among them, for example, are $425,000 for Aultman Health Foundation in Canton, Ohio, to buy technology and equipment; $540,000 for Children’s Memorial Hospital in Chicago to improve its facilities and buy equipment; and $300,000 for the Discovery Center in Boise, Idaho, to mount exhibitions and conduct outreach.

Wow, Michelle Malkin’s headline is “9,000 earmarks in the $410 billion omnibus spending bill: Gang tattoo removal, Maine lobster, La Raza & more!”.  She even has specifics from Hill staffer Tom Jones on the earmarks!

  • $200,000 for “Tattoo Removal Violence Prevention Outreach Program,” pg. 283;
  • Maine lobster earmark in the omnibus, pg. 173;
  • $5.8 million earmark for the “Ted Kennedy Institute for the Senate…for the planning and design of a building & an endowment,” pg. 232;
  • and National Council of La Raza, $473,000 earmark from Sens. Bingaman and Menendez, pg. 212.

Human Events reports (H/T GatewayPundit) that John Boehner and Mike Pence are both requesting that the bill be put out there in the open so everyone can see what’s in it. But they are getting snubbed, apparently:

House minority leader John Boehner (R-Ohio) called upon the Speaker Thursday to release the voluminous spending bill online without delay. “If Democratic leaders plan to schedule a vote on the half-trillion dollar omnibus spending bill next week, they should post the legislation online immediately so the American people have adequate time to read the measure and understand what is in it,” Boehner said. “My colleagues in the Republican leadership and I made this request two weeks ago, and to date, our request has gone unanswered…”

Rep. Mike Pence (R-Ind.), the House Republican Conference chairman, joined Boehner in asking again – apparently in vain — for an open process from the secretive Democrat leadership this time around. “More than two weeks ago, House Republicans called on Speaker Pelosi to post online the text of the upcoming half-trillion dollar ‘omnibus’ spending bill, bringing it out of the shadows and before the American people,” Pence said. “So far, that call has gone unanswered…”

Read the comments, the commenters have found even more earmarks!

Also, Nice Deb notes the irony of Obama painting himself as a fiscal conservative. She links to CBS News, and they say:

Mr. Obama has promised to slash the federal deficit in half by the end of his first term, reports CBS News senior White House correspondent Bill Plante.To do that, the president will reduce Iraq War spending, end tax breaks for the wealthiest Americans, and streamline government.

Contrast Obama’s wasting of taxpayer dollars with Bobby Jindal, turning down porkulus funds. The Anchoress linked to this video over at Hot Air of Jindal excoriating Obama for trying to pass off government spending as a means of stimulating the economy. Just listen to the way that Jindal structures his speech like a debater, and includes facts to support his assertions. WE NEED A COMMUNICATOR. Jindal is all substance and Obama is all style.

UPDATE: Here I explain how taking every penny earned by people making $75,000 or more will not pay for all the spending. Here I explain how Porkulus-2 would abolish the Washington, D.C. voucher program which allows school choice.