After Signing Into Law The Biggest Spending Bill In History, Obama Suddenly Worried About Deficits
Apparently Obama is going to be holding a “fiscal responsibility summit” soon. Given what he just did to the federal budget by signing the “economic stimulus” spending spree into law, that sounds about as constructive as getting drunk and going to an Alcoholics Anonymous meeting.
Feb. 22 (Bloomberg) — President Barack Obama plans to increase taxes on the wealthy and cut spending for the war in Iraq as part of a plan to slash the U.S. budget deficit to $533 billion by the end of his first term, according to an administration official.
Obama wants to reduce the deficit because he’s concerned that over time, federal borrowing will make it harder for the economy to grow and create jobs, said the official, speaking on the condition of anonymity.
The deficit Obama inherited on taking office last month was $1.3 trillion. The administration is scheduled to hold a so- called fiscal-responsibility summit at the White House tomorrow, with about 130 people invited, including about 50 members of the House and Senate from both parties. An overview of Obama’s budget proposal for the 2010 fiscal year, which begins Oct. 1, will be released Feb. 26.
So how is Obama going to fix the federal deficits? We already know he’s planning on a massive tax hike buy letting Bush tax cuts expire. He’s apparently suffering from the delusion that he can make up the rest by even more taxes on the people already paying most of the taxes and de-funding the war in Iraq.
Most of the savings will be realized from increased revenue from Americans making more than $250,000 a year and winding down the war in Iraq, said the official. The New York Times said yesterday Obama will propose letting President George W. Bush’s tax cuts for the wealthy lapse in 2010.
The economy is slowing, and with it federal tax receipts. On top of that we’ve got auto bailouts, financial industry bailouts, the “stimulus” bill and (coming soon!) Obama’s spend-happy domestic agenda. The stimulus alone is costing more than we’ve spent in Iraq in nearly six years.
If Obama thinks he’s going to pay for all that by simply ending spending on Iraq he’s kidding himself. But I don’t think he really believes that. Just like he probably doesn’t really believe that the expanded health care entitlements he signed into law earlier this year can be paid for with increased taxes on tobacco. I think Obama and the liberals have kicked off their time with a super majority with an unprecedented amount of government spending, and now they’re feeling vulnerable to criticism about it.
So now that they got all that spending out of their system, it’s time to put the checkbook away and pay lip service to fiscal responsibility for a bit. It’s all an illusion.
