Yesterday President Obama revealed his proposal for the 2012 budget and how he plans to tackle the national debt. Here's a quick breakdown on how he plans to cut $4.4 trillion in 12 years:
1. Raise taxes on the "rich" by repealing the Bush tax cuts for those making over $250,000 a year and limit itemized deductions for the wealthiest 2%.
2. Cut defense spending.
3. Reduce healthcare spending by cutting costs and waste.
4. Keep domestic spending low by building on the $38.5 billion in cuts agreed to last week.
Is this really the President's plan? Raising taxes? Cutting defense spending? Reduce domestic discretionary spending?
Now I don't know about you, but I don't think raising taxes on small businesses and people who worked hard to be successful and make more then $200,000 (individual) to $250,000 (couple) is a good idea as the country creeps from out under the shadow of a recession. In fact, I think it's a horrid idea. These "rich" people already pay 40% in federal taxes. By the time you add in state and local taxes, some of them are paying over 50% of their income in taxes. And the President thinks they aren't shouldering their tax burden? Really?
This is a spectacularly ridiculous idea and only supported by those individuals who feel people that make more then they do should be forced to spread their wealth around to those less fortunate, because hey, why should people who work hard for their money be able to enjoy it? Oh, that's right, I forgot the President wants Americans to live in a Robin Hood/Nanny State where the government takes from the rich, gives to the poor and takes care of everyone from cradle to grave.
The second part of the President's proposal that made my jaw drop were the proposed cuts to defensive spending. We're currently in the middle of three wars: Afghanistan, Iraq and now Libya. We have terrorists constantly trying to attack this country. Iran and/or North Korea could go nuclear at any time. Several countries in the Middle East are in the midst of prolonged civilian revolts against their governments, any of which the U.S. may be asked to step in like it did in Libya. The President thinks NOW is a good time to cut defensive spending? I don't think so. Here's what the Pentagon has to say.
Yesterday, the President also presented his response to Rep. Paul Ryan's proposed reforms to Medicare and Medicaid. His solution - cut excess spending and waste. Could he have been more vague? These mandatory entitlements, along with Social Security, will MAX OUT THE FEDERAL BUDGET BY 2025. That means every dollar the federal government brings in domestically will be spent on these programs if nothing is done now.
Ryan's proposal offers real leadership and solutions to save these programs from taking over the federal budget in a mere 14 years. Ryan's proposals save these programs from extinction and ensure they will be around for people in my generation. The President's plan punts the problem to another President either 5 or 9 years from now.
All in all, I was supremely underwhelmed by the President's plan. I'm all for Rep. Paul Ryan's plan which does not raise taxes, reforms mandatory entitlements, and does not cut defensive spending. Here's how it compares to the President's original proposal for the 2012 budget:
You can read more about Rep. Paul Ryan's plan at www.budget.house.gov.
If the President's solution to the fiscal problems that plague this country is enacted, I'll seriously consider moving to Canada, preferably somewhere in the Yukon.
UPDATE: Below, watch Rep. Paul Ryan talk about President Obama's proposal.
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