Obama’s Budget: $13T Added To Already Excessive Spending Budget
For the fiscal 2012 year, the president has proposed a $3.73 trillion budget, saying it would help to rein in the budget deficits. However, his plan could cause the gross national debt to swell to nearly $13 trillion over a decade.
President Barack Obama’s budget is setting up a conflict in the Republican-led House of Representatives on how to pull through out of the deepest recession in many years and boost the economic foundation for the years from now, with federal spending being the critical battleground.
His budget included spending boosts for infrastructure, education and research that are necessary for the economy’s recovery, he said. However, he is proposes to cut federal spending by $90 billion from 2012 in 2012 fiscal year, which begins in Oct. 1.
Obama said he was going to bring down the national deficit down to $1.1 trillion from $1.65 trillion. However, he avoided dealing with the bigger issues of Medicaid, Medicare and Social Security, which is causing the national debt to skyrocket.
The president’s blueprint included a federal spending increase of nearly $363 billion this year. Next year, he plans on dropping the deficit by $90 billion and then raising it again by $218 billion each year for the next nine years.
After 10 years, this leaves the government $26.35 trillion in debt, which is a drastic increase of almost $11 trillion from 2011.
Some bottom line analysts say the president’s budget is too apprehensive to dealing with the debt crisis. Some say it could even weaken the economy if it’s not reigned in.
Republicans Fire Back About Obama’s Budget
According to John Boehner, House speaker, Obama’s budget will end up costing jobs by too much spending, too much taxing and excessive borrowing.
This week, the House will vote on a $61 billion cut in spending proposal from this year’s budget. This is $100 billion less than President Obama’s budget proposed for the present fiscal year, which began on Oct. 1.
House member also plan on cutting more from the president’s proposal for the next few years. They plan to release details of their financial plan within the next few weeks.
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Posted by Brett Ackerman
on Feb 20 2011. Filed under Finance.
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