Wednesday, February 10, 2010

Obama's Budget Is An Outright Attack On The American Economy

Jeffrey Folks at The American Thinker has an outstanding column that eviscerates the Obama budget for what it is: a politically-driven attack on American free markets and prosperity.  Excerpts (emphasis mine):

Obama's fiscal 2011 budget, totaling $3.834 trillion, provides more than just details about revenues, expenditures, and deficits. It offers the clearest road map yet as to where the president intends to lead America. What that road map reveals is not very reassuring to those who care about limited government.

The most striking fact about the 2011 budget is its sheer size. A budget of $3.834 trillion is over $12,500 for every human being, or $50,000 per family, in the country. This level of spending is nearly equal to all of the wages collected by American workers in 2010. These numbers prove that the federal government has become a monstrous beast feeding off the lives of the citizenry.

The 2011 budget also reveals Obama's thorough disdain for free-market capitalism. Given free rein, the Democratic administration would seize the profits of all public and private corporations, effectively nationalizing the economy in the way that Chávez has done in Venezuela. The 2011 budget actually goes a long way in this direction. Other than huge tax increases on individuals resulting from expiration of the Bush tax cuts, the largest increases in the Obama budget come from so-called reform of taxation on American corporations operating overseas. This, of course, includes nearly all large corporations. The annual tax increase would be $13.6 billion for this measure alone.

The administration freely admits that its proposed tax increases are "targeted." What it refuses to discuss is its rationale for deciding which groups or industries are to be hit with higher taxes and which are to see their taxes lowered

If you really want to know about all of the taxes that it will raise on people of all brackets, check out this whole story - all the details are there.  It's a whopper, and we'll be lucky to see any kind of economic growth at all once it kicks in.  Much more likely is further destruction of America's prosperity by slamming everyone:

So for whom was this deficit-rich budget concocted? Clearly, it was for those special-interest groups and lobbyists who supported Obama in the 2008 election. The wealth-envy crowd will applaud the $10-billion annual bank "responsibility fee." The environmental lobby will approve the $4 billion annual tax increase on oil and gas companies. Teachers' unions will appreciate the 9% increase in education funding. Low-income voters will enjoy the increase in child and earned income credits, along with extensions in unemployment benefits and an additional $100 billion in government make-work spending.

Unfortunately for the underclass and everyone else, the proposed new taxes and deficit spending increases will be passed along in the form of higher prices. If approved in anything like its current form, the 2011 budget will have increased federal spending by 30% over the 2008 figure. Obama would have us believe that this money will come right out of the pockets of "the rich." Some of it undoubtedly will, but the bulk of this spending is funded by tax increases on corporations and increases in the national debt. The cost of these tax increases will be passed down to everyone.

By failing to create any meaningful number of jobs -- and the ones they did create were almost entirely non-productive government ones -- through historically unprecedented spending, Obama has proven that his baseline theory of economics is flawed.  Ultimately, his agenda is being driven by anti-business, anti-free market socialism, and that is very, very bad for business; when something is bad for business, it's bad for the economy, and we all suffer.  Here's the bottom line:

The 2011 budget reveals just how little Obama knows about the private sector. Does the president actually believe that productive jobs can be created by federal diktat out of thin air? Obama's budget points to a dismal future in which half of the country subsists on welfare while the other half receives a paycheck for processing welfare claims in the federal bureaucracy.

That would be the tax tipping point he's talking about, and we are getting dangerously close to it.  Rather than hitting the brakes, Barack Obama and the Democrats -- driven by their radical Leftist ideology -- are flooring it in what can only be described as an outright attack on the American economy.

There's my two cents.

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