Lori Montgomery and Michael A. Fletcher
Tuesday, February 2nd, 2010
As President Obama announced his $3.8 trillion spending plan on Monday, Republicans savaged it as a recipe for fiscal disaster, while Democrats defended the call to drive record deficits even higher to finance measures aimed at putting people back to work.
The budget that Obama sent to Congress would devote an additional $282 billion to “temporary recovery measures” over the next three years, on top of the huge economic stimulus package congressional Democrats pushed through during his first days in office.
As a result, the gap between the government’s revenue and spending would reach a record $1.56 trillion this year. Next year’s deficit would approach $1.3 trillion, forcing the government to borrow 33 cents of every dollar it spends.
Obama would raise taxes on multinational corporations and high earners over the next decade and freeze non-security spending for three years, with much of the proceeds dedicated to reducing the budget imbalance. Nevertheless, deficits would remain elevated through 2020 and the national debt would grow — potentially threatening the country’s economic stability.
“When the people find they can vote themselves money, that will herald the end of the republic.” – Fall Of The Republic – Buy the DVD here
This article was posted: Tuesday, February 2, 2010 at 11:03 am