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The deficit in 2009 was $1.4 trillion. Technically that year falls under George Bush’s administration, but $800 billion was the stimulus plan passed by Obama and the Democrats. So to be fair, let us assume that what Obama meant by cutting the budget in half by the end of his first term was half of $600 billion ($300 billion). According to the CBO, the deficit at the end his first term, fiscal year 2013 will be $977 billion.
That wasn’t the only frightening fact released by the CBO today.
The non-partisan Congressional Budget Office (CBO) released an analysis of President Obama’s Fiscal Year 2013 budget request. On the bright side the CBO’s analysis estimates next year’s budget deficit would be only $76 billion higher than the President claimed. On the bad side the CBO’s analysis estimates next year’s budget deficit would $76 billion higher than the President claimed adding almost another trillion dollars to the national debt. (The full report is embedded below)
This report by the Congressional Budget Office (CBO) presents an analysis of the proposals contained in the President’s budget request for fiscal year 2013. The analysis is based on CBO’s economic projections and estimating techniques (rather than the Administration’s) and incorporates estimates by the staff of the Joint Committee on Taxation for the President’s tax proposals.
The President’s budget request specifies spending and revenue policies for the 2013–2022 period and also includes initiatives that would have budgetary effects in fiscal year 2012.
CBO estimates that enactment of the President’s proposals would have the following consequences for the budget:
- The deficit in 2012 would equal $1.3 trillion (or 8.1 percent of gross domestic product), $82 billion more than the 2012 deficit projected in CBO’s baseline.
- In 2013, the deficit would decline to $977 billion (or 6.1 percent of GDP), $365 billion more than the shortfall projected for 2013 in CBO’s baseline.
- The President’s budget contains a host of proposed changes to spending and revenue policies. By CBO’s estimate, those policy changes would, on net, add about $2.9 trillion to projected deficits over the 2013–2022 period and necessitate $0.6 trillion in additional interest payments (because of increased federal borrowing). Most of the net budgetary impact would come from changes in tax policies, but changes in spending policies would also play a role:
Upon reading the report House Budget Committee Chairman Paul Ryan said;
“Today’s analysis serves as a disappointing reminder of this administration’s broken promises and failed leadership when it comes to averting the most predictable economic crisis in our history. It confirms that the President’s budget is not serious about spending reduction – his budget calls for over $1 trillion in net spending increases. It confirms the President will not fulfill his promise to cut the deficit in half by the end of his first term – after four straight deficits in excess of $1 trillion, CBO estimates next year’s deficit will be even higher than the President claims. It confirms that the President’s budget accelerates our nation toward a debt crisis: despite his claims to stabilize the debt, his budget increases debt held by the public by over 11 percent over the next decade and his own budget admits that the government’s fiscal situation ‘deteriorates’ in the years ahead.
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Chairman Ryan is too polite, what he is really saying is “we’re screwed.” The United States is growing further and further in debt. In the eight years before Barack Obama took office, President Bush increased the debt more than every President who came before him–combined. In less than half the time, Barack Obama has blown through Bush’s debt record and is looking to continue adding to his numbers in the four years to come.
His promise that he would reduce the budget is as reliable as his promise that people will be able to keep their heath insurance under Obamacare (not at all).
The American economy is in danger of collapsing under its own debt. Barack Obama has done nothing to stem the tide of run-away spending and deficits and based on his budget he doesn’t plan to very soon.
The CBO report is embedded below: