Obama’s $3.9 Trillion Budget Proposal, $600 Billion In New Spending, $1 Trillion In New Taxes


True to form President Obama’s proposed budget is a whopping $3.9 trillion and contains $600 billion in new spending. Of course there are some tax hikes in there too.

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The Wall Street Journal has an overview:

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President Barack Obama proposed a $3.9 trillion budget package Tuesday peppered with new taxes on upper-income Americans and businesses, plus numerous spending initiatives aimed at bolstering education, research and low-income work programs.

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Mr. Obama proposed almost $1 trillion in new taxes over the next 10 years, with almost all that revenue coming from higher taxes on estates and upper-income earners. These include limits on tax breaks and the creation of what the White House calls a “Fair Share Tax,” also known as the “Buffett Rule,” which would prevent some earners from lowering their effective tax rate below a certain level. The White House estimated its proposals to overhaul the corporate tax code—by lowering rates and eliminating deductions, combined with economic growth—would lead to a large increase in corporate tax revenues next year, up 35% in one year to $449 billion. (Read More)

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The Fair Share tax sounds like something out of Ayn Rand’s Atlas Shrugged.

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The Washington Post notes that Obama’s budget paints a much rosier scenario on the national debt than the CBO.

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President Obama unveiled an ambitious budget blueprint Tuesday that seeks more than $600 billion in fresh spending to boost economic growth but also pledges to tame the national debt by raising taxes on the wealthy, slashing payments to health providers and overhauling the nation’s immigration laws.

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The White House estimates that the debt would shrink to 69 percent of the economy by 2024, compared to 74.4 percent today.

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The projections are far rosier than those made recently by the non-partisan Congressional Budget Office, which estimates that the deficit will be 4 percent of the size of the economy in 2024 and the debt will grow to 79 percent of GDP. (Read More)

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Here’s a handy little chart highlighting the difference.

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The national debt is currently 17,407,558,484,993 and going up every second.

Update: RNC Chairman Reince Preibus issued the following statement in response to this big budget proposal:

“As the 2014 elections hang in the balance, President Obama and his fellow Democrats would rather present an unserious, political budget instead of addressing our nation’s long-term fiscal problems. With our national debt already exceeding $17.4 trillion, Americans deserve serious leadership – like the kind candidate Obama promised to bring to the presidency – and not a Democrat Party whose sole concern is its own political fortunes.”