President Obama is marketing his new budget by saying it has “more than $2 in spending cuts for every $1 of new revenue.” Is this true?
In a word, no.
In fact, his spending increases and advertised spending cuts cancel each other out—leaving only a massive tax increase.
The President cancels sequestration’s spending cuts—therefore raising spending—by the same amount that he reduces spending. When that’s done, all that’s left is a $1.1 trillion tax hike.
- The President increases spending by $1.1 trillion by cancelling sequestration. Sequestration, the automatic spending cuts adopted in the Budget Control Act of August 2011, is already in effect. Thus, cancelling these reductions in spending increases spending by $1.1 trillion over 10 years.
- The President reduces spending by $1.1 trillion. The President lists a number of additional spending reductions based on a December offer to Speaker of the House John Boehner (R-OH). These total about $1.1 trillion and are completely offset by the cancellation of sequestration.
- The President raises taxes by $1.1 trillion. The official total tax increase in President Obama’s budget is available in the Treasury Department’s “Green Book.” Treasury scores the total net tax increase from all President Obama’s tax policies at more than $1.1 trillion over 10 years.
So President Obama’s spending cut claim doesn’t hold up, and Americans get stuck with a $1.1 trillion tax bill. Real math hurts.
Read the Morning Bell and more en español every day at Heritage Libertad.
- Secretary of State John Kerry is in South Korea, where he said that President Obama had ordered “a number of specified exercises not to take place” and was intent on “lowering” U.S. rhetoric, according to Reuters.
- Heritage expert Bruce Klingner breaks down the latest intelligence report on North Korea’s nuclear capabilities.
- Democrats in the Senate are holding up a resolution honoring Margaret Thatcher.
- It’s now possible to hack an airplane and control it using a smartphone app, according to one developer.
- Join us at noon ET for a Google+ Hangout featuring behind-the-scenes stories of The Heritage Foundation.