Obama budget forecast predicts $8.3 trillion deficit over next decade
The White House has delivered its 10-year budget forecast to Congress, and it predicts a trillion-dollar deficit for fiscal year 2012.
The project, titled the Mid-Session Review, projects $42.6 trillion in spending, and will balloon the federal government’s accumulated debt to $25.4 trillion by 2022, according to an analysis from the office of Sen. Jeff Sessions, the GOP’s budget chief in the Senate. The review was released Friday, reducing the chance it will get much coverage in the media.
Last year, the national debt grew to $14.8 trillion, an increase of $5 trillion from 2008.
The river of red ink shows that President Barack Obama’s campaign-trail ads are “dramatically false,” said a statement from Sessions.
Those new ads promise to pay down the accumulated deficits in a “balanced way.”
In the July 23 campaign ad, dubbed "The Choice", Obama says to the camera that a tax increase is “asking the wealthy to pay a little more so we can pay down the debt in a balanced way, so that we can afford to invest in education, manufacturing and home-grown American energy.”
But Obama’s new budget plan predicts spending of $46.2 trillion, which is $1.5 trillion above the so-called “baseline” and 57 percent higher than the 2012′s spending rate
The baseline was agreed by White House and Hill negotiators in 2011, although many experts and advocates say it likely will be abandoned next year, even if Obama is reelected.
Sessions’ statement said that the spending plan shows the president has no intention of using tax increases to cut the accumulated deficit, and would use them instead to fund the $42.6 trillion spending plan.
The budget projection show that Obama’s misleading ads “ought to be pulled down,” said Sessions’ statement.
The administration’s Mid-Session Review predicts accumulated deficits of $8.3 trillion between 2013 and 2022.
But Session’s analysis adds the current 2012 deficit of $1.2 trillion, plus $1.1 trillion in little-recognized borrowing from government trust-funds, to argue that the administration is actually on a path to increase the cumulative deficit by $10.5 trillion by 2022.
The predicted $25 trillion debt is only part of the federal government’s debts, as it has also made numerous long-term promises — via such programs as Social Security, Medicare and federal pensions — that will cost roughly $90 trillion over the next several decades.
Top Opinion
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Golden Panther 2012/07/28 02:27:11
+5Oh hell, whats a few trillion dollars amongst our Communist, Muslim, racist friends.
Five Spending Habits That Lead To Debt:
1. Spending more money than you make.
Keep your spending within your monthly income so that you're living within your means and not creating debt. Reduce your spending below your income and use the extra to pay down your debt.
2. Spending money you don't have.
You can resolve this bad habit the same way you stop spending more money than you make - by reducing your expenses and relying only on your income to pay for your wants and needs.
3. Using credit for ordinary purchases.
Some credit cards have reward programs that let you earn cash, miles, or points by charging more on your credit card. If you choose to maximize your reward earnings by charging more, only charge what you would have purchased with cash and pay off the purchase immediately.
4. Using credit when you have cash.
To change this bad habit, you have to be willing to pay for what you want with the money you've earned. Realize that while you can postpone payment by using credit, you'll end up paying more than if you'd just spent your own cash.
5. Using debt to pay off debt.
Using debt to "pay off" debt might be beneficial if you can transfer a balance from a high interest rate credit card to one with a lower limit...
Five Spending Habits That Lead To Debt:
1. Spending more money than you make.
Keep your spending within your monthly income so that you're living within your means and not creating debt. Reduce your spending below your income and use the extra to pay down your debt.
2. Spending money you don't have.
You can resolve this bad habit the same way you stop spending more money than you make - by reducing your expenses and relying only on your income to pay for your wants and needs.
3. Using credit for ordinary purchases.
Some credit cards have reward programs that let you earn cash, miles, or points by charging more on your credit card. If you choose to maximize your reward earnings by charging more, only charge what you would have purchased with cash and pay off the purchase immediately.
4. Using credit when you have cash.
To change this bad habit, you have to be willing to pay for what you want with the money you've earned. Realize that while you can postpone payment by using credit, you'll end up paying more than if you'd just spent your own cash.
5. Using debt to pay off debt.
Using debt to "pay off" debt might be beneficial if you can transfer a balance from a high interest rate credit card to one with a lower limit. However, you have to be careful that the balance transfer fee doesn't negate the interest savings and that your post-promotional interest rate isn't worse than your previous rate. Transferring a balance once or twice to take advantage of a great rate is different from continually transferring balances to dodge credit card payments.
Now we have Barack Obama, No Cash, and No Hope.
We already have a $16 trillion deficit.