President Obama’s Fiscal Year 2013 Budget
Just another Tax-and-Spend Proposal
On February 13, President Obama released his budget proposal for the fiscal year starting October 1, 2012. Just like every budget he has offered, this proposal spends too much, taxes too much, uses budget and accounting gimmicks, and fails to address the nation’s biggest challenges. Last year, the President’s budget was so unserious that the Senate rejected it 97-0; not even a single member of his own party supported the plan. This year he hasn’t done much better.
Spends Too Much, Taxes Too Much: Once again the President produced a budget that never balances, creates trillion-dollar yearly deficits and uses campaign rhetoric instead of pro-growth tax policy.
- The President’s budget envisions over $3.8 trillion in federal spending in 2013. Over the next five years, his budget runs up $20.6 trillion in government spending.
- The budget calls for $1.9 trillion in higher taxes while the economy struggles to regain its footing. Economists of all stripes agree that raising taxes during a recession is bad policy, but the President is more concerned with campaign rhetoric about taxing the rich than using proven policies to restore economic growth. What’s more, raising taxes only gives politicians more money to spend; it will only undermine efforts to control federal spending.
- Even with all these new taxes, the President foresees a $1.3 trillion deficit for this year; the forth straight year with a trillion-dollar deficit. For 2013, Obama's budget projects a deficit of $901 billion, but if we strip out the budget’s unrealistic assumptions, yet another trillion-dollar-plus deficit is nearly certain.
- The President uses rosy estimates to make his budget look better than it really is. The past three years the nonpartisan Congressional Budget Office issued an analysis of the President’s budget. They found the deficits were actually 20 percent higher than the President claimed.
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