After the boastful swagger of the President during the State of the Union Address last month, we knew this kind of budget was on its way. Obama, as he has since first coming into office, has chosen the full steam ahead approach. Acting as if his party had not lost seats in both houses, Obama set his budget to Congress today.
President Obama is sending Congress an ambitious budget plan Monday that includes a half-trillion-dollar public works program and an array of tax increases meant to fund a host of other agenda items — in what Republicans are ripping as a tax-and-spend document that does little to restrain the soaring $18 trillion debt.
It is basically the same items that were outlined in his speech. He wants to take from the top earners and give that to the middle-class. He is calling this middle-class economics. This same idea has been tried many times before but has never brought economic growth.
Fox quotes Paul Ryan.
“This top down redistribution doesn’t work.”
The reason that it does not work is very simple. High tax rates on the top earners and corporations stifle economic growth. Things begin to cost more as the corporation passes on the tax hit to their consumer and the wealthy invest less to make up for their loss on taxes. It is hard to understand how many can continue to herald this as a real solution.
We also see that this will do little to fix our massive debt problem. According to Fox:
The fiscal 2016 budget proposal would leave a deficit of $474 billion. Obama’s budget plan never reaches balance over the next decade and projects the deficit would rise to $687 billion in 2025.
This continues to push our payment down the road. We cannot continue to mortgage our children’s future away to pay for our programs. This is not even mentioning the fact that we are not dealing with the biggest problems. The President seems content with allowing the massive budget black hole of Medicare and Social Security to go waisting our wealth away.
According to Nicole Kaeding:
For all the creative new ways the administration is finding to compound the tax burden on hardworking Americans, there is precious little mental energy reserved for the most pressing budget issue of all: reforming Social Security and Medicare. These programs are the cornerstone of federal entitlements, represent half of all federal spending, and if left untouched promise to balloon uncontrollably to the detriment of our fiscal health.
The issue, as always is the government intrusion into areas it does not belong. It is clear that Americans want a government that provides some services. We want government run retirement and healthcare for retirement aged citizens. And we refuse to see that, like many penchant plans; these kinds of programs are simply unsustainable.
Kaeding further shows us why:
Approximately 10,000 baby boomers hit age 65 every day while life expectancy continues to increase. Longer periods of retirement means longer periods that benefits must be provided. Social Security and Medicare’s unfunded liabilities are close to $66 trillion. Waste is also rampant within these programs. One estimate suggests that up to 20 percent, $120 billion, of Medicare’s expenditures are improper. Half of the entire increase in federal spending over the next ten years is these two programs.
Until Americans demand the end of these kinds of foolish plans, we have to swallow this kind of budget. Somebody has to pay, and the rich only make so much money. So America, pass it on to your children. You want Keynesian economics, have his attitude. “It’s not you who will have to suffer, why do you care?”
Now go tell your children when their part of the bill is due.