Obama Budget Pivots From Stimulus to Deficit Cuts

[onehandle]

Source: New York Times

WASHINGTON — President Obama, pivoting at midterm from costly economic stimulus measures to deficit reduction, released his budget proposal for fiscal year 2012 on Monday. The budget projects an annual deficit of more than $1 trillion before government shortfalls decline to sustainable levels for the rest of the decade, and says that that is merely “a down payment” on what needs to be done to for the nation’s long-term fiscal health.

Annual deficits through fiscal year 2021 will add a combined $7.2 trillion to the federal debt, Mr. Obama’s budget indicates — after allowing for $1.1 trillion in deficit-reducing cuts in spending and increases in taxes over 10 years that the president proposes. After 2021, an aging population and rising medical costs will once again drive deficits to unsustainable heights unless there are further changes in spending and taxes, he acknowledges.

While the federal budget would total $3.7 trillion for 2012, much of that spending is accounted for by fast-growing programs — Medicare, Medicaid and Social Security — that are essentially on autopilot unless Mr. Obama and Congress change them, as both parties say they must. It also includes a big item that cannot be cut without reining in the overall deficit: interest on the mounting federal debt.

According to G. William Hoagland, the former longtime Republican staff director for the Senate Budget Committee, net interest payments to America’s creditors here and abroad are the fastest-rising piece of Mr. Obama’s budget, growing 16 percent over the next decade.

Read more: http://www.nytimes.com/2011/02/15/us/politics/15obama.html

[jwirr]

1. Those poor teabaggers. NOW because the repugs are in control

of the house the government is going to cut their medicare and even Social Security. It really does not pay to be so stupid. I wish these cuts could be targeted by voter preference. If they voted for repugs they get repug cuts - if they did not then they get to keep their government benefits.

[obxhead]

3. Any finalized cuts to SS or Medicare will Obama's signature on them

So, Dems couldn't keep their benefits either if those cuts come to fruition.

The killing of the lower class is a joint effort by both parties.

[jwirr]

6. I only wish you were wrong. Unfortunately I am afraid. Of course, I

already only get a minimum ($255) a month so I doubt they can do much more to me.

[creeksneakers2]

2. This is why we can't afford high speed rail

Also, proposing something so expensive which will only benefit a limited segment of the population at a time like this makes Obama look like he is out of touch with reality.

[amandabeech]

7. Agreed.

High speed rail makes sense in some of the more densely populated parts of the country, particularly the Northeast where the Acela was supposed to go fast.

We have a lot of important infrastructure that needs repair, and those projects are all over.

Let's spend money on them first.

How about the national and state park systems? Most facilities have been neglected since the days of Obama's hero, Reagan.

[grahamhgreen]

4. Taxing the wealthy at the greatest generations tax rate will eliminate the debt in 10 years.

[RUMMYisFROSTED]

8. What?

Raise revenues?

:crazy:

[jkappy]

5. YOYO Policy Sure Does Encourage Hoarding

i didn't get any stimulus money, but will be hit by the deficits. will know better next time.