OBAMA'S $3,000,000,000,000 TAX HIKE
March 31, 2010
When he released his new budget proposal on February 1, President Barack Obama asserted that the government "simply cannot continue to spend as if deficits don't have consequences; as if waste doesn't matter; as if the hard-earned tax dollars of the American people can be treated like Monopoly money; as if we can ignore this challenge for another generation."
Yet the President's new budget does exactly that, according to Brian Riedl, the Grover M. Hermann Fellow in Federal Budgetary Affairs at the Heritage Foundation:
- The budget would permanently expand the federal government by 3 percent of gross domestic product over 2007 prerecession levels.
- Taxes would be raised on all Americans by nearly $3 trillion over the next decade.
- It would raise taxes for 3.2 million small businesses and upper-income taxpayers by an average of $300,000 over the next decade.
- For every dollar spent in 2010, 42 cents would be borrowed.
In addition, the budget:
- Would run a $1.6 trillion deficit in 2010 -- $143 billion higher than the recession-driven 2009 deficit.
- Would leave permanent deficits that top $1 trillion as late as 2020.
- Would dump an additional $74,000 per household of debt into the laps of our children and grandchildren.
- Would double the publicly held national debt to over $18 trillion.
According to Riedl, President Obama has offered a budget that does nothing to address the nation's serious short-term and long-term fiscal problems -- and indeed makes them worse.
Source: Brian Riedl, "Obama's $3,000,000,000,000 Tax Hike," Wall Street Journal, March 10, 2010.
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