On Wednesday, President Barack Obama released his long awaited and dreaded budget proposal. He claims that it will help lead to a deficit reduction of over $1 trillion over the next 10 years, which breaks down to only a reduction of $200 billion a year. He also claims that his proposal will help lead efforts towards a balanced budget in the near future. Lastly, he also claims that his math is sound.
The moment his budget proposal was released, hundreds of people and organizations immediately began analyzing it to see if it lived up to Obama’s claims. Among those is the Heritage Foundation, whose first analysis indicate that Obama’s budget proposal is not what he says it is, which is pretty much his track record on every other major proposal of his, including Obamacare and the Stimulus packages.
Here are some of the things that the Heritage Foundation discovered in Obama’s proposal:
1. $1.1 trillion tax hike that would hurt every income class of Americans and businesses. He is calling for caps on deductions, including how much one can donate to a charitable organization, and place more caps on exemptions. Taxes would be raised on the wealthy even more than what was increased on January 1, 2013, which would further hurt wage and job growth. After signing the new death tax increase three months ago, Obama proposes to increase it even more and lower the exemption from $5 million estate to $3.5 million. He is also proposing a cap on the tax-deferred retirement accounts at $3 million. Any amount over that will not be tax deferred. Another tax that will hit many middle and lower income Americans is an increase in the federal cigarette tax.
2. Insufficient defense funding that would result in a weaker and smaller military defense. His budget proposal does not provide for any modern weaponry or equipment, reduces the amount of training and maintenance, which may not matter anyway, since he calls for further reduction in personnel and general military structure.
3. Obamacare swings into action starting January 1, 2014 and Obama’s new budget is fattening up the coffers for Obamacare. The budget calls for a one year postponement of the Medicaid Disproportionate Share Hospital (DSH), a program that helps fund hospitals who care for greater numbers of low income and uninsured patients. He also proposes to increase funding for the exchange programs with the states concerning Medicaid and Medicare. Perhaps the most damaging aspect of the proposed budget with concerns of Obamacare is a mandatory drug rebate for low-income seniors using Medicare Part D. The drug rebate would be paid by the drug manufactures which amounts to a tax that they will certainly pass on to seniors in the form of increased Part D premiums. There is also an increased surcharge for Plan B seniors and increased premiums for Part B and D upper income participants. There are a number of other healthcare provisions in Obama’s budget proposal that will cost all of us even more for healthcare in the form of premium increases as well as increased costs on drugs, doctors and hospitals.
4. Although Obama claims that his budget proposal will lead to a balanced budget, it won’t. According to Heritage’s Patrick Louis Knudsen:
“Because the budget never balances—it doesn’t even try—debt remains at dangerously elevated levels.”
5. Obama’s proposed budget is a moot point at this time. Because Obama failed to provide a budget over two months ago when he was supposed to, both the House and Senate proposed and passed their own budgets. The trick now is to get the House and Senate to amicably mesh their two proposals together into one workable and acceptable package. Obama’s proposal not only won’t work, but it’s completely irrelevant at this point in time. The only purpose it could possible serve is to cloud and muddy up the political waters, making it even more unlikely that a single agreed upon budget will emerge out of Washington.
The bottom line is that Obama’s budget proposal contains a number of hidden evils in the form of more taxes and increased costs for every income level in the nation. People, especially seniors living on fixed incomes will see their cost of living increase, placing many of them in financial jeopardy. His budget also feeds the already gluttonous Obamacare, making it fatter and more costly. Hitting the wealthy with even higher taxes after they just took a substantial hit in January, will only leave them with less money to invest in their businesses, which ultimately results in fewer jobs and fewer pay increases. His budget also further weakens our military defense which causes me to question his loyalty to America and ask if he is purposely setting us up to be taken over by a stronger military force.
Like everything else Obama touches, his budget is pure poison to the American people and future of our nation. Every one of you needs to tell your Representatives and Senators to block Obama’s budget proposal for everyone’s sake.