No one, not even the members of the Democrat Party that reside in the halls of Congress, have shown any interest in President Obama’s latest “budget.” It was “dead on arrival” as the saying goes.
The $4.1 trillion “manifesto” is more a tax and spend vision than a fiscal plan. However, it is informative to see how many really awful ideas have been put forth in this latest iteration of “hope and change.”
[Source: Obama’s Budget to Nowhere, by Stephen Moore]
By the by, I am not exonerating Republicans when it comes to spending sprees. They helped Obama exceed budget caps by $150 billion in just the past two years.
Importantly, at $4.1 trillion, this is the largest budget ever proposed to Congress. But, just wait. If we follow the Obama “plan” our expenditures will reach $5 trillion in four years and $6 trillion in four more years. I keep telling you that a trillion dollars is a lot of money. In one trillion seconds the year will be 35,742! In Star Trek, star date 56947.0 was the year 2379, 33 centuries before we have expended the next trillion seconds. It is still likely cheaper than if Bernie gets elected.
And on what “investments” does our Chief Executive want to spend this vast sum? Well, I suggest you go back to the ill-fated “stimulus” and you will see that the “worm has NOT turned!” By the by, have you noted the complete absence of the word “stimulus” in the campaign rhetoric of either Democrat candidate? The word is anathema to to the Democrat Party
Anathema or not, the plan is to spend your money on the same things they always spend your money: solar and wind energy programs, education, job training, climate change research, mass transit (be sure to see the post on the DC Streetcar), Medicaid funding for Puerto Rico, Obamacare funding, ”green” projects, the unions, the welfare industry and the Washington spending lobby. President Obama tells us that these are “fiscally responsible” appropriations.
That, of course, is only the “spend” side of the equation. Never forget the other side of the Democrat Party playbook, the “tax” side of the equation.
[From the Moore article] The budget calls for $2.8 trillion of new taxes and fees over a decade. Start with the oil tax of $10 per barrel. This equates to about 20-25 cents more per gallon consumers will pay at the pump. Amazing: Obama was just bragging about $2-a-gallon gasoline in his State of the Union message. This also comes at a time when the oil-and-gas industry is pretty much flat on its back. Twelve major oil companies are expecting losses in 2016, with Chesapeake near bankruptcy. Now Obama wants to put a new tax on them? Insane.
Then there is the capital-gains tax. When Obama came into office, the tax was 15 percent. He raised it to 20 percent, then to 23.8 percent (as part of Obamacare) and now he wants to raise it to 28 percent. That’s a 90 percent increase in the tax from the Bush years.
This dunderheaded idea will only lower business investment at a time when the fourth-quarter GDP report showed business investment flat and, for some industries, negative.
There is also a $110 billion bank tax for financial institutions that get too large and profitable. So, Washington bails out the banks if they are failing but then taxes them if they get too successful. If Obama wants to stop bank consolidation, he should work to repeal the Dodd-Frank bill, which has encouraged record bank mergers.
Then he wants new taxes on 401(k) retirement plans and Roth IRA disbursements. I have always said that putting after-tax dollars into IRA retirement plans was a sucker’s bet, because the politicians would simply tax the money again when you start taking it out. And that’s what is starting to happen.
The White House would also raise the estate tax — and nearly triple the number of middle-class estates that must pay the tax. Obama wants to raise the death tax to 45 percent from 40 percent and provide only a $1 million exemption. So those who want to leave their life savings — already taxed when it was earned — to their kids and grandkids would have the government take half of it first.
Americans should be very clear about what the progressive left wants to do next if they retain the White House, and Obama has proudly shown his hand.