Washington Gears up for Budget Battle

President Obama announced his proposed federal budget for the next fiscal year which begins on October 1. It calls for $3.55 trillion in expenditure and anticipates revenue of $2.38 trillion. That leaves a deficit of $1.17 trillion. Naturally, the Republicans are casting this as a total betrayal of America's future, while the Democrats will probably load the budget up with their pet projects. Mr. Obama was the master of understatement when he said, “I realize that passing this budget won't be easy.”

Actually, Mr. Obama has done one thing that makes the budget more honest if not more popular. He has included the costs of the Iraq-Namese and Afghan Wars in the budget. Under the Busheviks, these were held off the books. Like most off the books operations, their clandestine accounting led to fraud and thievery. If nothing else, the American people will know what it costs to fight.

The Republicans, having recently rediscovered fiscal responsibility after spending money the last eight years like an addict in a crack-house, have already begun to take the budget to pieces. Unfortunately, they are doing it not with facts and reason but with talk-radio inspired nonsense. "This budget plan is once again a missed opportunity for American taxpayers -- it raises taxes on all Americans, implements massive new spending and fails to make any tough choices to control the deficit," said Senator Judd Gregg (R-NH), the top Budget Committee Republican.

Rather than call Mr. Gregg a liar, one will simply say he is mistaken. Taxes will go up for those making $250,000 or more per year, and then, they will go up less than 4%. Some 95% of US households will get a tax cut. “Massive new spending” is precisely what is needed as the economy continues to decline. “Making tough choices to control the deficit” is rich coming from a man who voted for each and every Bush administration budget – which doubled America's national debt after wiping out the record surplus it inherited.

At the same time, the Obama administration has indulged in the same chicanery that almost all of its predecessors have. It based its budget on somewhat unlikely economic assumptions. It rests on the belief that the economy in 2010 will grow by 3.2%. For the three years after that, growth will continue at 4+%. While it is true that growth rates are stronger as recessions end than during a period of normal growth, these figures just seem high. Developed economies just don't grow consistently at those rates. Anyone able to cite evidence to the contrary should contact this journal with such proof.

© Copyright 2009 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Fedora Linux.

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