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.

 

By Romina Boccia and Amy Payne at Heritage Foundation

 

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:

1. 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.
2. 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.
3. 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.

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Editor’s note:

In 2008 Obama had this to say about the debt:

“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that ‘the buck stops here. Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.” – Senator Barack Obama when the debt was “only” about $10 trillion.

And there’s this from Obama’s official Office of Management and Budget website:

“Rather than fight the same tired battles that have dominated Washington for decades, its time to try something new. Let’s invest in our people without leaving them a mountain of debt.” — President Barack Obama on his Office of Management and Budget website.

Also please consider:

Has Obama Already Bankrupted America?

9/12 – the Manhattan attack that gave us Obama

Mark Levin: Obama is a Marxist

The Corruption of America

The Chicagoization of America

Debt Jumps More Than $1T for 5th Straight Fiscal Year

Obama Has Stolen $5.3 Trillion From Our Children In Order To Make Himself Look Good

Debt quotes

Obama’s Achievement – Gov’t Has Become Gigantic Wealth-Transfer Machine

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