Obama produces another tax and spend budget

President Barack Obama unveiled his $3.9 trillion budget for FY 2015, just days after Senate Democrats announced that they have no intention of trying to push through a budget in a what’s expected to be a contentious election year.

The proposal doesn’t offer anything in terms of new ideas or policy changes, though it does respect the budget framework agreed upon by Sen. Patty Murray (D-WA) and Rep. Paul Ryan (R-WI), chairs of the respective congressional budget committees, for FY 2015 before blowing past it in later years.

President Obama’s budget is more a nod to the leftist Democratic base than an actual blueprint for governing the country. It’s not passable, and the White House knows it. The proposal is so toxic that no vulnerable Democrat could support it and win reelection.

The Wall Street Journal notes that the budget would impose $1 trillion in new taxes over the next 10 years. Including new taxes and fees and rather rosy economic projections, the White House anticipates $3.15 trillion in new revenue through 2024, according to Philip Klein at the Washington Examiner.

“Overall,” wrote Klein, “the OMB sees revenue at $3.15 trillion higher for the next decade than what the CBO projected, bringing revenue as a percentage of the economy to 19.9 percent, which would tie the record set in 2000.”

Keep in mind that President Obama got a $618 billion tax hike at the beginning of 2013. That’s on top of the $1 trillion in new taxes and fees in Obamacare.

The White House is touting its latest gimmick-filled budget as a means to lower the deficit. But that doesn’t reflect reality. The tax hikes and other revenue increases will not be applied to reducing the budget deficit.

“Almost all of the supposed deficit reduction in the near term comes from ‘Reductions in Overseas Contingency Operations,’ i.e. winding down the war in Afghanistan,” Kyle Wingfield notes. “But because Obama has been talking about winding down that war for more than two years, this line item is often considered a gimmick to make the rest of the numbers look better.”

“If that’s the case this time as well, it would mean 96 cents of every new projected dollar of revenue was going to new spending, not to deficit reduction,” he explains, adding later that the White House “is proposing spending that is $233 billion higher than the current “baseline,” which already foresees $1.16 trillion in higher spending during those years.”

The budget that the White House presented yesterday may stay in the news cycle for a couple more days. But it’s not something that comes even close to political realities of a divided Congress in Washington or economic realities of families and businesses who have been buried in taxes and regulations that have hampered their ability to prosper.

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