But what about the liberal claim, repeated constantly, that the Bush tax cuts of 2001 and 2003 caused today’s deficits? CBO has shown this to be demonstrably false. On May 12, the budget arm of Congress examined the changes in its baseline projections from 2001 through 2011. In 2001, it had predicted a surplus in 2011 of $889 billion. Instead, it expects a deficit of $1.4 trillion.
What explains that $2.29 trillion budget reversal? Well, the direct revenue loss from the combination of the 2001 and 2003 Bush tax cuts contributed roughly $216 billion, or only about 9.5% of the $2.29 trillion. And keep in mind that even this low figure is based on a static revenue model that assumes almost no gains from faster economic growth.
After the Bush investment tax cuts of 2003, tax revenues were $786 billion higher in 2007 ($2.568 trillion) than they were in 2003 ($1.782 trillion), the biggest four-year increase in U.S. history. So as flawed as it is, the current tax code with a top personal income tax rate of 35% is clearly capable of generating big revenue gains.
CBO’s data show that by far the biggest change in its deficit forecast is the spending bonanza, with outlays in 2011 that are $1.135 trillion higher than the budget office estimated a decade ago. One-third of that is higher interest payments on the national debt, notwithstanding record low interest rates. But $523 billion is due to domestic spending increases, including defense, education, Medicaid and the Obama stimulus. Mr. Bush’s Medicare drug plan accounts for $53 billion of this unanticipated spending in 2011.
The last GOP budget was in 2007, and the deficit was $160 billion, ONE TENTH of Obama’s budget deficit. And that was WITH the tax cuts. The cause of the current trillion dollar deficits is Barack Obama’s spending.
Remember what the unemployment rate was under Bush:
Comparison of unemployment rates - Bush vs Obama
I think that looking at the budget deficit numbers and the unemployment numbers is a good way to judge how capable a President is. It gets away from the media spin, the gaffes, the jokes on those liberal Comedy Channel shows. Just look at the numbers, because we all have to care about jobs and spending. Politics is about our freedom, prosperity and security. Not about making us laugh or feel superior to others.
ANNOUNCER: We will now take you live to Beijing for the joint press conference already underway between U.S. President Obama and Chinese President Hu Jintao.
OBAMA: As I already said privately, I would like to thank President Jintao for his kind welcome and generous hospitality, and I hope that during this visit we can have a productive dialogue about the serious issues of concern that remain between our two countries — issues ranging from the unfair valuation of your currency to the trade imbalance, and most importantly, human rights. I believe there can be a great partnership between us but it will require compromise and understanding.
(Hu Jintao “speaks.”)
INTERPRETER: Thank you, Mr. President. I would like to add that I completely understand why you feel entitled to come here and lecture China on our shortcomings. After all, my country does owe the United States a great deal of money. Oh, wait. Hold on a moment. I believe I had that backwards. In fact, now that I think about it, it is your country that owes us a large sum of money. Is this correct?
OBAMA: Uh… yes.
(Hu Jintao “speaks.”)
INTERPRETER: Now, it’s coming back to me. I believe it’s $800 billion.
OBAMA: That is correct.
(Hu Jintao “speaks.”)
INTERPRETER: Such a large sum.
OBAMA: Yes, it is.
(Hu Jintao “speaks.”)
INTERPRETER: And yet you haven’t even mentioned it. That’s so odd.
OBAMA: Uh, look, you’re going to get your money.
(Hu Jintao “speaks.”)
INTERPRETER: Are we? Are we going to get our money? Because from what I read your country is in the middle of a serious recession.
OBAMA: Uh, while this is true, there are signs that our bailout has steadied the financial markets and our stimulus package has been effective in fixing the job crisis.
(Hu Jintao “speaks.”)
INTERPRETER: I’m curious. How many jobs has it created?
OBAMA: Uh, so far, none.
(Hu Jintao “speaks.”)
INTERPRETER: I see.
OBAMA: But our health care reform plan, we’re confident, is going to lead to enormous savings.
(Hu Jintao “speaks.”)
INTERPRETER: How exactly is extending health care coverage to 30 million people going to save you money?
OBAMA: I… don’t know.
(Hu Jintao “speaks.”)
INTERPRETER: And this “Cash for Clunkers” program– I have read that you purchased many clunkers with our money.
OBAMA: Yes, we have.
(Hu Jintao “speaks.”)
INTERPRETER: What does this word “clunkers” mean?
(Hu Jintao “speaks.”)
OBAMA: Well, a clunker is a car…
(Hu Jintao “speaks.”)
INTERPRETER: I know what a clunker is. And just so there is no misunderstanding, you are not allowed to pay us back in clunkers.
OBAMA:Of course not.
(Hu Jintao “speaks.”)
INTERPRETER: You know, as I listen to you, I am noticing that each of your plans to save money involves spending even more money. This does not inspire confidence.
OBAMA: I assure you, you’re going to get your money.
(Hu Jintao “speaks.”)
INTERPRETER: Will you kiss me?
OBAMA: Sorry?
(Hu Jintao “speaks.”)
INTERPRETER: Will you kiss me?
OBAMA: I don’t understand.
(Hu Jintao “speaks.”)
INTERPRETER: I like to be kissed, (shouts) when someone is doing sex to me!
OBAMA: There’s no need for that.
(Hu Jintao “speaks.”)
INTERPRETER: No? You know how many uninsured we have in China? One and a quarter billion, billion. But I’ll tell you this: We don’t owe anyone $800 billion.
OBAMA: Well, obviously, we take our debt to you very seriously.
(Hu Jintao “speaks.”)
INTERPRETER: I suppose if I really wanted to get my money I could call and say I was a Wall Street banker who needs his bonus. But really, why should I have to stoop to that level?
OBAMA: You don’t have to stoop to any level.
(Hu Jintao “speaks.”)
INTERPRETER: Please understand if it were my $800 billion I wouldn’t care, but it belongs to my country. I feel like I should bring it up.
OBAMA: You’re going to get your money.
(Hu Jintao “speaks.”)
INTERPRETER: Say, while you’re here, are you at least going to treat me to dinner and a movie?
OBAMA: I’m sorry?
(Hu Jintao “speaks.”)
INTERPRETER: I think it’s the polite thing to do, (shouts) before doing sex to me!
OBAMA: Mr. President, please.
(Hu Jintao “speaks.”)
INTERPRETER: Very well.
OBAMA: I assure you that as soon we solve this economic crisis…
(Hu Jintao “speaks.”)
INTERPRETER: Which one? The one that your country’s reckless real estate speculation caused? That one? I just want to make sure I know which one we’re talking about.
OBAMA: We are taking steps to make sure that what happened will never happen again.
(Hu Jintao “speaks.”)
INTERPRETER: What steps?
OBAMA: Uh, reform of banking regulations.
(Hu Jintao “speaks.”)
INTERPRETER: Do I look like Mrs. Obama?
OBAMA: What?
(Hu Jintao “speaks.”)
INTERPRETER: Do I look like Mrs. Obama?
OBAMA: Of course not.
(Hu Jintao “speaks.”)
INTERPRETER: Then why are you trying to (shouts) do sex to me like I was Mrs. Obama?
OBAMA: Now, now.
(Hu Jintao “speaks.”)
INTERPRETER: Just do it. Get it over with.
OBAMA: Mr. President!
(Hu Jintao “speaks.”)
INTERPRETER: Don’t be a tease.
OBAMA: I just…
(Hu Jintao “speaks.”)
INTERPRETER: I can take it.
OBAMA: This is not the time or place.
(Hu Jintao “speaks.”)
INTERPRETER: Very well. In that case, I call this press conference to a close, and Live from New York, it’s Saturday Night!
WINTERY KNIGHT 