Obamanomics has turned into an unprecedented experiment in runaway government with no plan to pay for it, save, perhaps, for a big future toll on the middle class such as a value-added tax. White House budget director Peter Orszag promises that next year’s budget will have a “plan to put the nation on a fiscally sustainable path.” Hide the children.
A burst of sustained economic growth, which we’d love to see, would substantially boost tax revenues and reduce future debt. But there’s nothing in the Obama budget that nurtures or rewards growth or small business. Most of the major policy initiatives, such as the $1 trillion cap-and-trade energy tax, are a drag on growth. Mr. Obama wants to raise capital gains, dividend and income tax rates, which will reduce risk taking, innovation and investment. The House health-care bill would impose an 8% payroll tax on millions of small business owners, which will destroy jobs.
The White House issued a statement yesterday that the President is “very concerned about these out-year deficits.” But apparently not so concerned as to stop pushing for a new $1 trillion health-care entitlement that is conveniently not included in these latest budget forecasts.
The real fiscal crisis in Washington is that neither Congress nor the White House are offering any escape from these trillion-dollar deficits. Mr. Obama has not called for automatic and immediate spending cuts. He has not proposed eliminating hundreds of wasteful programs. To the contrary, the White House still hasn’t ruled out another fiscal stimulus, as if a $1.6 trillion deficit isn’t Keynesian stimulus enough. The Administration’s celebrated scrub through the budget this summer identified $17 billion in agency savings. That’s what Uncle Sam is borrowing every three days.
The source is the Wall Street Journal. Sorry if intelligence offends you.
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