Dave Boyer reports: When President Obama signs into law the new two-year budget deal Monday, his action will bring into sharper focus a part of his legacy that he doesn’t like to talk about: He is the $20 trillion man.
“The Boehner-Obama spending agreement would allow for unlimited borrowing by the Treasury until March 2017. This deal piles on billions of dollars to the national debt by increasing spending over the next three years and then not paying for it for a decade — with half of the offsets not occurring until 2025.”
— Paul Winfree, director of economic policy studies at The Heritage Foundation
Mr. Obama’s spending agreement with Congress will suspend the nation’s debt limit and allow the Treasury to borrow another $1.5 trillion or so by the end of his presidency in 2017. Added to the current total national debt of more than $18.15 trillion, the red ink will likely be crowding the $20 trillion mark right around the time Mr. Obama leaves the White House.
“Of this $154 billion, about $78 billion is paid for honestly. The remaining $56 billion of the legislation — mostly the war spending increase and interest costs — is not paid for at all.”
When Mr. Obama took over in January 2009, the total national debt stood at $10.6 trillion. That means the debt will have very nearly doubled during his eight years in office, and there is much more debt ahead with the abandonment of “sequestration” spending caps enacted in 2011.
“When Mr. Obama took over in January 2009, the total national debt stood at $10.6 trillion. That means the debt will have very nearly doubled during his eight years in office, and there is much more debt ahead with the abandonment of “sequestration” spending caps enacted in 2011.”
“Congress and the president have just agreed to undo one of the only successful fiscal restraint mechanisms in a generation,” said Pete Sepp, president of the National Taxpayers Union. “The progress on reducing spending and the deficit has just become much more problematic.”
“We will be raising the debt ceiling in an unlimited fashion. We will be giving President Obama a free pass to borrow as much money as he can borrow in the last year of his office. No limit, no dollar limit. Here you go, President Obama. Spend what you want.”
— Sen. Rand Paul
Some budget analysts scoff at the claim made by the administration and by House Speaker John A. Boehner, Ohio Republican, that the budget agreement’s $112 billion in spending increases is fully funded by cuts elsewhere. Mr. Boehner left Congress last week.
“The Boehner-Obama spending agreement would allow for unlimited borrowing by the Treasury until March 2017,” said Paul Winfree, director of economic policy studies at The Heritage Foundation. “This deal piles on billions of dollars to the national debt by increasing spending over the next three years and then not paying for it for a decade — with half of the offsets not occurring until 2025.” Read the rest of this entry »
Joel Gehrke writes: Patty Murray, the fourth-ranking Democrat in the Senate, threatened today to provoke a government shutdown this fall if the Republican-controlled Congress won’t agree to a budget more in line with President Obama’s priorities.
“Republicans have a choice,” Murray said in a Wednesday speech, per the Huffington Post. “They can either work with us early on a bipartisan budget deal that will set the topline budget levels and allow the Appropriations Committee to work on bills that can be signed into law. Or, they can wait until we reach a crisis, until we approach or hit another completely unnecessary government shutdown — and work with us then.”
The House on Wednesday approved a $3.8 trillion spending plan for fiscal 2016 that balances the budget in a decade, reforms Medicare and Medicaid, and eliminates Obamacare.
The resolution passed by a vote of 228 to 199, and over the objections of some conservatives who opposed additional defense money because it would increase funding for a special defense spending account that does not require reductions elsewhere in the budget.
Lawmakers passed the budget after hours of debate on a half-dozen spending plans, three from Democrats and three from Republicans.
The GOP gave their rank and file the choice of voting for a budget blueprint that did not boost defense spending.
But that measure had little chance of passing because 77 defense-minded Republicans, citing the threat of terrorism at home and abroad, pledged to vote against it.
They cited warnings from the military that the current funding levels are too low to maintain the nation’s defense.
Some fiscal conservatives decided to back the measure with extra defense funding, authored by House Budget Committee Chairman Tom Price, R-Ga., because the proposal includes a a bigger priority for the far Right: A provision that would make it easier for the Senate to repeal the Affordable Care Act with 51 votes, instead of 60.
The Senate is expected to approve its own budget blueprint early Friday morning. The plan is similar to the House version but not identical, so the two plans will have to be merged in a conference committee in April, when Congress returns from the two-week Easter recess. Read the rest of this entry »
Joel B. Pollak reports: The White House and its press corps have come to a consensus that the recent shutdown/debt limit debate was a “manufactured crisis”–the implication being that it was manufactured by Republicans. That is untrue–first because President Barack Obama and the Democrats could easily have averted a crisis if they had been willing to compromise, and second because forcing such confrontations has been their strategy since 2011.
The debt limit was not a priority for the Tea Party until the Democrats made it one. In the 2010 elections, the subject almost never came up. There was certainly no plan to shut down the government if the Republicans did not get their way. Rather, interest in these confrontations came from the Democrats and the Obama administration, who saw the 1995-6 crises as models for how to defeat congressional Republicans.
That is why, as the 112th Congress took office, Secretary of the Treasury Tim Geithner sent new Speaker John Boehner a letter warning of the consequences of failing to raise the debt limit. The new Congress had no plans to block an increase. But like George Stephanopoulos’s infamous question about contraception early in the 2012 Republican presidential debates, Geithner’s letter intended to make the debt limit an issue.