Monday, September 19, 2011

Clearing out the President's budget gimmicks

Keith Hennessey has a good breakdown of what the President is proposing.  He concludes that
  • The President is not, as he claims “proposing real, serious cuts in spending.”  His proposals would result in a tiny net reduction in spending:  -$86 B over 10 years.  Almost all of the spending cuts for which he wants to claim credit have already been enacted or accounted for.  Almost all the new spending cuts he proposes would be used to offset higher spending in his Jobs bill proposal and for more Medicare spending on doctors.
  • The President is proposing about $1.5 T in higher taxes over ten years, offset by about $250 B of tax relief, for a net tax increase of almost $1.3 T.
  • Almost all of the President’s new proposed deficit reduction comes from tax increases.