So, apparently Barack Obama (dumbo, as i call him) is sort of reacting to the
impeding debt ceiling vote by talking about ways to decrease the budget deficit
- here is a free tip, try spending less than you take in.
Obama says his
"plan" will reduce the projected deficit by $4 over 12 years or so (or $333
billion a year). There was an estimate of increased taxes raising $1 trillion.
Basically, he is talking about cutting $250 billion of spending a year - which
is not nearly enough. So, how large are the expected deficits anyway if he
could remove them and still be deep in the red. The way i see it, the federal
budget should never be over $1 trillion dollars.
Obama's plan basically fails one of my key fiscal responsibility tests.
It is barely about fiscal responsibility at all, but hiding the largess of
government under increased revenues. Sure there will be some cuts, but not
nearly as many as their should be. If Obama were really serious, he would be
talking about a red ink bloodbath (massive cuts to everything). Like most
Obama's estimates, this one seems like it is probably overly optimistic (after
all, a liberals never met someone else's dollar they didn't want to spend). i
am not sure his plan for $1 trillion of it to come from tax increases in even
remotely realistic. Like all of Obama plans, be wary of collateral damage.
This plan is largely inconsequential lip service (from a person who doesn't
truly mean a word they say).
Fiscal responsibility is all about using
money and resources more effectively/efficiently - not hiding your idiotic
practices by artificially inflating revenue. In other words, fiscal
responsibility is all about the spending. i haven't been able to take anything
Obama says seriously about the economy since he pushed his Obamacare program so
hard - knowing that the estimates (garbage in, garbage out) were overly
optimistic by a long way.
The more i see the Democratic party talking
points, the more i believe that they want there to be class warfare. What do
you expect when 50% (or so of the population) actually pay no
federal income taxes. The lower and middle classes acutally benefit from tax
break/credits/whatever far more than they should (at the federal level). So,
how about cutting the child credit, mortgage/debt credits, etc in everyone's tax
bill - not just picking on the successful. Using PDI as a basis for taxation is
grossly
unfair.
Edit for "fun":
i was thinking
about how some of this government stuff "works". If they (wrongly) assumed that
budgets were flat for the foreseeable future, they could cut a program in year
one - and then count it as a savings for the next 11 years. So, a $1 billion
cut could show up as a $12 billion dollar savings - not so truthful is it? The
problem here is that only $1 billion would have acutally been cut. Programs cut
are only really fiscally relevant for the year in which they occur. Counting
savings for programs already cut (in future years) is beyond dubious.
i am far more interested in a true cash flow scenario for the government
than i am with accounting tricks.
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