Obama’s Deficit Plan is All Tax Hikes, No Cuts
Today President Obama’s released a deficit-reduction proposal that was actually written down on paper, the first time he has done so since introducing his laughable 2012 budget back in February (the Senate voted it down 97 to 0). .....The White House claims that the president’s plan represents a “balanced approach” that, relative to its current policy baseline, will increase the federal deficit initially by $300 billion in fiscal year 2012 (to pay for his “jobs plan“), but will reduce deficits by $3.2 trillion over the next decade...... The claim is outrageously misleading....... In fact, when you strip away the budgetary gimmicks, Obama’s plan achieves less than half the overall deficit reduction he is claiming, and is as wildly unbalanced as his February budget proposal.
In order to come up with that $3.2 trillion figure, the White House employs the following gimmicks to achieve a phony $1.8 trillion in deficit reduction that should not be counted as such:
(1) claiming the inevitable reduction in spending — about $1.1 trillion — on the Iraq and Afghanistan wars as “savings,”
(2) including in its baseline $293 billion in funding for the Medicare “Doc Fix” to restore Medicare payments to physicians, spending that does not reflect current law and ought to be offset,
(3) counting as “savings” the subsequent reduction in interest payments on the debt, which does not constitute a “policy” and should not be scored as one.