The president’s budget came out on in full on Monday, though there were the usual leaks here and there over the weekend and a bit of last week too. On the whole, there are many things to like about this budget. Tax cuts for the middle class, tax credits to help encourage businesses to get hiring again, what’s not to like?
This budget proposal comes in the middle of yet another renewed debate on the deficit and debt. Don’t expect too much. Republicans want to see nothing but spending cuts, and Democrats favor tax increases on the wealthy. It’s been that way for quite awhile, and you’re only fooling yourself if you think that it’ll change now. That’s the concern that always exists around independent commissions to study the issue and propose spending cuts / tax increases to fix it. Republicans are wary such a commission would actually, gasp, suggest raising taxes. And Democrats are worried that such a commission would actually, oh no, suggest cutting domestic spending. And neither side (though Republicans especially) want to see suggestions that defense spending be cut. Weak on national security, hm? Kick them out of office! Or, at least, that’s what they fear too many constituents would say. So we’re left with everyone wanting an independent commission, as long as it recommends to the chamber at large their ideas on deficit reduction.
I say all that to make plain two things. One: I don’t blame this on Presidents Obama or Bush. Two: it is my view of the situation that it’ll take something extra-ordinary to make Congress actually substantially cut deficit spending and begin to pay down the national debt. Good evidence of this is the blatant politicking on the part of the several Republicans who cosponsored a bill that would create a deficit reduction commission, but then voted against it. My, has that proven itself to be perfect for the Democrats accusations of “the party of no.”
I do find it peculiar, and a bit ridiculous, to read that President Obama encourages Congress to follow his lead on deficit reduction. Some lead. His partial freeze that’s been touted to high heaven will save, wait for it, all of $250 billion over the next decade. That’s it! That averages out to $25 billion a year. Wow, what an amazing contribution. I can’t honestly be the only one who remembers when President Obama laughed off Senator McCain’s promise to end earmarks if he were elected because it would, after all, save a mere $18 billion per year. Well, not only has the president cut this program here, that one there, and each time the White House and Congressional Democrats hailed it as a triumphant step on the road to fiscal responsibility, but he actually has the nerve, the audacity, to claim he’s now a leader on the issue.
The AP wrote that President Obama’s urging Congress to pass major spending increases for job creation and recession relief is “part of a record $3.8 trillion budget that would boost the deficit beyond any in the nation’s history while only slowly beginning to put Americans back to work.” And some of the cuts the president proposed in this new budget have absolutely no chance of making it through Congress, and he knows it. As if cuts in agricultural subsidies, or and end to new purchases of C-17 cargo planes, will ever be approved. But the president can propose that which he knows isn’t politically doable, that which he doesn’t even necessarily want done, and then blame Congress (especially Republicans) when it doesn’t happen. And I have no doubt he’ll figure out how to place some of the blame on his predecessor too.
But don’t worry, he’s increasing taxes on the rich. That’s not what he’s calling it of course, it’s technically simply letting the Bush tax cuts expire. Whatever it technically is though, the effect is the same as a tax increase. You see, 35% of their income in federal income tax isn’t enough. No no, we must take away 39.6% of the money they earned so we can cut taxes for the middle class. Nearly half this country won’t be paying taxes this year, and none of those people are the rich. Want to raise money? Don’t do it on the backs of the upper class. How about increasing taxes on the block of voters who benefit most from government programs? The middle class. If this president were truly making the tough choices on the deficit, he’d be raising taxes on the middle class, not lowering them. Instead he’s going the easy route and taxing the wealthy few.
The NASA change-up is welcome, and I favor the commission as long as it’s truly independent and non- or bipartisan. I also don’t expect President Obama to be able to do much more than he has. Political capital is in scarce supply in Washington these days, and the government has been reduced to moving legislation that will (hopefully) not only not piss off the populists in America, but may actually make them happy. Everyone’s trying to shove someone else under the bus, or throw people in front of them as they race for the back door. Will it work? For some of them. The others are just engaging in the amusing yet irritating spectacle of pointing fingers, blocking the other party, taking credit where it isn’t due, and claiming to be for “Main Street.” I’ve got news for these politicians: no one’s left on Main Street. The businesses that didn’t close when Wal-Mart came in are sure as hell closed now. We are, by and large, either unemployed or working for the very people and businesses Congress and President Obama keep attacking. But, don’t worry, because the U.S. government is on the case. Don’t we all feel better already?
