The Democrats Have Redefined

 

President Bush overspent IMHO. President Obama's solution: Spend WAY more.

 

The Obama Tax and Spend Economy is Here


http://blog.heritage.org/2009/03/02/morning-bell-the-obama-tax-and-spend-economy-is-here/

March 2nd, 2009


Yesterday,  just days after President Barack Obama signed his economic stimulus measure, the White House released a statement claiming credit for the reopening of a window and door factory in Chicago. Vice President Joe Biden said, “The reopening of this factory and the rehiring of these workers provide an excellent example of how the money in the Recovery Act is targeted to spur job creation quickly.”

If the Obama Administration is going to claim credit for every job created since  Obama and Biden were elected, then if they are honest, they should also take the blame for every job lost. Since Obama’s election Nov.  4,  the Dow has dropped 2,562 points. This past Friday, the Commerce Department reported that the U.S. economy shrank by 6.2%, making it the worst quarter since 1982. Many economists predict that labor data to be released this Friday will show that as many as 700,000 jobs were lost in February.

Why has our economic downturn accelerated only since President Obama took office? Because the Obama Administration’s policies amount to a declaration of war on the investors, entrepreneurs, and small businesses that make our economy grow. The budget released last week only confirmed the worst fears about the direction the Obama Administration wants to take the country.

Taxes: At a time when only the economists on the White House payroll believe our economy is about to recover, the Obama Administration plans to raise taxes on the American people by almost $2 trillion. The first $1.3 trillion of these taxes are aimed at the highest earning Americans, corporations, and small businesses. According to Heritage Foundation senior analyst Brian Riedl, while the top 20% of taxpayers now pay 80% of all taxes collected by the government, under the Obama plan, the top 20% of tax filers would pay 90% of all taxes, and the number of families who owe no tax would climb to near 50%. Riedl warns: “You can only increase taxes on the rich so much before they stop working, saving and investing, and that reduces economic growth for everybody.”

Then there is the $646 billion tax hike on every American. The Obama Administration euphemistically refers to these taxes as “climate revenues” from their planned carbon capping scheme. But make no mistake: government taxes on energy will be passed on to the consumer. And the deadweight loss from this massive and regressive tax hike doesn’t even include the costs of the invasive new government monitoring of all economic activity necessary to make the plan work.

Spending: Obama’s budget proposes $1.13 trillion in regular discretionary spending for 2010. This is a full 12% increase over the 2009 spending baseline. On top of this the Obama budget increases entitlement spending by another $700 billion. The proposed post-recession spending level of 22% of GDP has been exceeded only eight times in the post-World War II era. And these numbers do not include the spending priorities of the unchecked far left in Congress.

The Chicago Tribune reports today:  ”President Barack Obama will break a campaign pledge against congressional earmarks and sign a budget bill laden with millions in lawmakers’ pet projects … Taxpayers for Common Sense, a watchdog group, identified almost 8,600 earmarks totaling $7.7 billion.”

Deficits: The Obama budget claims to cut the deficit in half by 2012, but relies on audaciously optimistic economic forecasts that no one believes in. Adding the “stimulus” bill to a realistic budget baseline yields a projected 2010-2017 cumulative budget deficit of $8.4 trillion – 2.5 times the size of President Bush’s deficits over the same eight-year period. Before the recession, revenues were 18 percent of GDP and spending was 20 percent. After the recession, President Obama would maintain revenues at 19 percent of GDP, and spending at 22 percent. In other words, all new tax revenues would finance new spending, rather than deficit reduction. President Obama’s structural budget deficit would exceed President Bush’s.

Defending Obama’s budget Sunday on Meet the Press, Democratic Leadership Council chairman Harold Ford Jr. commented: “In November voters said, ‘We want a different path.’ If it doesn’t work, [Obama]’s indicated, ‘I own this budget. I own this economy.’ “ Exactly.

 

 

 

Josie06 Josie06
56-60, F
10 Responses Mar 2, 2009

i have no agenda. i merely state the facts as i see them and i believe with my entire being that this tact is the wrong tact. No agenda.<br />
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i am allowed to have my opinion and state it ... even though it is contrary to the Administration and evidently many others here at EP.<br />
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So it's mutiny now for citizens to have a differing opinion. The economic storm was manufactured by our Congress and many greedy businessmen. <br />
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There is a way out ... this is not it. This course will prolong the storm and quite possibly create the disaster that many want.

Josie06 - I am not sure what your agenda is but you are not helping are one change to survive. What is is. <br />
It is now Pres. Obama’s turn at bat. If it was McCain’s turn I would say the same. <br />
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It is MUTINY to rock the boat in the middle of the GREATEST ECONOMIC STORM in all of history. Nothing in history gives us a clue as to what will or even might work. <br />
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Go away, come back some other day. Say in a year or two…DD

Former President Bush was not truly a conservative even though he ran as one. He was a centrist, and a big government big spender. President is the same ... on steroids based on the bailout bill and the budget bill just passed.<br />
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i don't claim to know everything, but i have studies history. We tried this before and it didn't work. Government spending like a drunken sailor will not save us.

"I don't know that the country can continue to take the expensive beating it is taking."-I agree. I would add though the word "has" taken.<br />
You keep saying I do not add anything of substance. <br />
(1.) The over whelming fact that eight years of conservative know it all "Let the rich do as they will and some will tinkle down on the rest BS" is history. Is fact.<br />
(2.) I could gather around a hundred or more books and cite a storm of “facts” and it would all be for nothing. There is no substance to give us a clue as to what is coming down the road. <br />
(3. YOU are undermining the only hope we have. <br />
YOU are claming to KNOW when you know less then most.

Thank you Dewduster for again adding no substance to the discussion. And also implying that i and others know nothing and therefore could not possibly have an opinion.<br />
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Only our elected elitist Congress and President are capable. <br />
That is pure and utter BS as everyone is allowed an opinion.<br />
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Time will tell who was right. Personally, i don't know that the country can continue to take the expensive beating it is taking.

I am a retired teacher and I taught Economics. I am certain that no one knows what is going to happen next. Not even the people at the Federal Reserve. Not even our elected officials. Not the talking heads, the blogers ETC. Not me. Not you.<br />
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We are in for a wild ride and I wish someone, anyone had a clue as to what is down the road a year from now.<br />
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I believe we are flying down the road at over a hundred miles an hour and we are in dense fog. <br />
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I wish you knew what you are talking about, but you don’t…DD

lilAnnie, you missed it. There are other revenue gainers that are not the Income Tax.<br />
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News last night: Federal gasoline tax to be raised to $1.50 per gallon (which is 18.4 cents per gallon right now). Will this only hit those making over $150,000 dollars? No ... everyone.<br />
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OR ...<br />
how about the proposals (federal and state) to charge you by the number of miles your drive.<br />
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how about increasing the cigarette tax to $1.01 per pack (from .39 cents)<br />
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The Omnibus Budget Bill just passed imposes a “cap and trade” tax of $646 billion. Every American family will pay this tax in the form of higher gasoline, heating, and electric bills.<br />
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Just a few that affect the "poor" of us who make under that magic limit that makes you rich.

THey are not raising taxes on the American people. They are raising taxes on 10 percent of the top earners. Tell you what, think of it as punishment for a job badly done. Conservatives are so in love with the idea of a meritocracy. The Titans of industry F'd up badly, so now they get brought down a few pegs, they don't deserve to be up there any more, since, you know, there's only room for the cream at the top!

Obama wines, dines and forms conga lines while the DOW drops to 1997 levels The DOW Jones Index dropped to below 7000 today. This is the lowest level for the DOW since 1997 according to CNNMoney.com.<br />
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NEW YORK (CNNMoney.com) -- Stocks tumbled Monday, with the Dow and S&P 500 falling to 12-year lows after insurance company American International Group's huge quarterly loss added to worries about the financial sector and the economy.<br />
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The Dow Jones industrial average (INDU) lost almost 300 points, or 4.2% to end at 6763.29, its lowest point since April 25, 1997.<br />
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Meanwhile, the party goes on at the White House. The entertaining has dramatically picked up since Obama took office. Apparently, Wednesday is party day for the Obama Administration. Cocktails are often served and once a conga line even formed according to Breitbart.com<br />
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WASHINGTON (AP) - The White House is the place to be on Wednesdays.<br />
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Since the presidency changed hands less than six weeks ago, a burst of entertaining has taken hold of the iconic, white-columned home of America's head of state. Much of it comes on Wednesdays.<br />
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Cocktails were sipped during at least three such receptions to date, all held on Wednesdays. <br />
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See http://money.cnn.com/2009/03/02/markets/markets_newyork/index.htm<br />
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Very impressive. Nero fiddled so that he could rebuild Rome they way he wanted.

President Barack Obama’s has not offered change; he has offered a continuation of George W. Bush’s policies. <br />
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President Bush increased spending because of the Iraq war and because his “compassionate conservatism” expanding the reach of the federal government most significantly. <br />
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President Obama will spend less on Iraq and more on other things. Greatly expanding the reach of the federal government even more.<br />
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The basic principle is the same. <br />
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The President should stop claiming that Bush's policies created the mess that we are in. If they did, then his policies will only make things worse. <br />
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That's common sense.<br />
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You can not spend your way out of a recession with the government as the only spender. FDR proved that.

The Obama tax and spend plan is here to try and repair the country after the Bush destroy the economy plan.