President Obama said “we need to put politics aside and pass a budget.” Ya gotta be kidding me! The $4 trillion budget Obama sent to Congress is nothing more than pure politics. I guess this is the result of Obama’s telepathic ability to hear the two-thirds of the voters who didn’t vote last November.
As Fox News reports, “President Obama on Monday opened his campaign for a $4 trillion budget despite it being given little chance of passing, as Republicans blast the fresh-off-the-presses proposal as a bundle of new spending, new taxes — and new borrowing.”
“The plan includes a half-trillion-dollar public works program and an array of tax increases meant to fund a host of other agenda items. The document hinges on what Obama calls “middle-class economics,” seeking tax breaks for many Americans while imposing increases on top earners, corporations and particularly the financial sector.”
“Referring to proposed spending on everything from roads to education initiatives, Obama said, “We can afford to make these investments while remaining fiscally responsible.” “We would be making a critical error if we avoided making these investments,” he added. “We can’t afford not to.”
I must highlight that back in January 2009 we were all told about those “shovel ready” jobs to repair our ailing infrastructure. The stimulus was close to $1 trillion, so why is it that we’re still talking about spending nearly $500 billion for infrastructure projects?And did you notice the language of “investments?” We’ve been spending quite a bit of money at the federal government, and what exactly has been the rate of return on these “investments?” Just last week we presented a little primer on Obama debt and deficits — so what have we borrowed all this money for? And please, don’t give me the tired old Iraq War story. Lest you forget, Obama once referred to Afghanistan as the “just” war and now we don’t even call the Taliban Islamic terrorists. Plus we have — well, Obama has — decided we won’t target belligerents who are members of the Taliban. So we should see cost savings there, since our troops will be performing crossing guard duties.
Imagine this, as Fox writes, “Obama claims the plan is “fully paid for,” the total budget shows a $474 billion deficit for fiscal 2016. Obama’s budget plan never reaches balance over the next decade and projects the deficit would rise to $687 billion in 2025.”
How many of you can come up with a household budget plan that keeps you in perpetual debt and never balances your household finances? Can any of you just go into your basement or attic and start up the printing press to produce your own money?
How about this, can you raise taxes on those living in your home? Yep, maybe I could raise taxes on Aubrey and give more benefits to Austen — that would make Austen really happy. But what would that do to Aubrey? It certainly wouldn’t incentivize her to work harder knowing ol’ Dad will just enact economic patriotism and wealth redistribution based upon my definition of “fairness.” Well, we all know that would never happen. Anyway, Angela would just raise my taxes and sell off my motorcycle — after all, I should share my bike with others.
Obama’s budget includes a 7 percent annual increase. It also increases taxes on capital gains, dividends, and death/estate. So what will happen to the individual desire to invest — part of the engine of economic growth? We all know what happens: it will cease and therefore the tenuous gains for our anemic economic recovery will be lost.
Funny how Obama’s budget was released on Groundhog Day, because it truly is nothing more than a repeat.
Solutions? Sure, move away from the progressive tax system first presented in the book The Communist Manifesto by Marx and Engels to a flat tax, individual and corporate. Nope, Obamas wants to tax corporate profits overseas at 14% — well he forced them there in the first place because corporate tax rates in the U.S. are so high. So lets reduce the corporate tax rate to 28 percent and keep those jobs and dollars here. We should keep capital gains tax low, between 10 to 15 percent, eliminate dividends and death taxes, and get back to Bill Clinton’s idea that “the era of big government has ended.” As if.
Let’s try to enact fiscal, economic, tax, regulatory, and monetary policies that get us back on track to having a free market economy — not one based upon government spending. President Obama has gone back to the same old Keynesian tax-and-spend economic theory.
Sir, it simply doesn’t work. Just ask the almost 93 million Americans who’ve dropped off the workforce rolls.