Obama’s budget would explode the national debt while increasing taxes. That’s the conclusion of the Congressional Budget Office, controlled by lawmakers who support Obama. “The President’s proposals would add $4.8 trillion to the national debt,” increasing “the cumulative deficit from 2010 to 2019 to $9.3 trillion.” The budget also adds $1.9 trillion in tax increases.
And the stimulus bill Obama claimed was needed to avert “disaster” and “irreversible decline“? It will shrink the economy over the long run, since its “increase in government debt is expected to displace or ‘crowd out’ . . . private capital.”
Obama yesterday praised the House for passing a bonus tax that would make some employees of healthy banks pay over 100 percent in taxes and legal obligations. (The administration is lying about when it became aware of the AIG bonuses, which it knew about for months, and shielded through language it slipped into the stimulus package to benefit AIG, which is a major donor to liberal politicians like Obama)
The CBO’s conclusion confirms its earlier findings that the stimulus package will cut wages and the size of the economy in the long run, despite costing $800 billion. The stimulus package also gutted welfare reform.
Despite Obama’s praise for the economically-destructive bonus-tax bill, his language was so vague and weaselly that both proponents and opponents of the bill, in wishful thinking, expressed the belief that he agreed with them. Supporters of the bill took his praise at face value; opponents thought his remarks were simply catering to public outrage, which has led to “threats of violence” against AIG employees. Public outrage over AIG may have peaked, judging by blog comment threads.