Fiscal Policy: Shorn of its accounting gimmicks, the president’s budget isn’t a “balanced” plan to get the debt crisis under control. It’s a monument to fiscal irresponsibility.
With much fanfare and a lot of media hype, President Obama unveiled his latest budget plan — two months late. An IBD review of Obama’s budget finds that, among other things, it:
• Boosts spending and deficits over the next two years. Obama’s own budget numbers show that he wants to hike spending over the next two years by $247 billion compared with the “baseline,” which even after his proposed new tax hikes would mean $157 billion in additional red ink.
Obama claims he’ll get tough on spending and deficits later, but every budget expert knows boosting spending today only makes it harder to cut later.
• Vastly exaggerates spending cuts. The press has widely reported that Obama’s budget would cut spending a total of $1.2 trillion over the next decade. But Obama’s own budget shows that he actually cuts spending a mere $186 billion. (The relevant tables can be found at http://www.whitehouse.gov/sites/default/files/omb/budget/fy2014/assets/tables.pdf on Pages 187-190.)