So, as you pore over Obama's new budget, beware the budgeters' tricky talk. When you hear liberal journalists in the mainstream media repeat the line that Obama's new budget "reduces the deficit by $1.1 trillion over 10 years," don't believe it for a second. Obama is not actually reducing the current $1.65 trillion deficit by $1.1 trillion. Rather, Obama plans to borrow $1.1 trillion less than he would have under earlier projections. Those projections, contained on page 174 of the document the White House released Monday, assumed vast expenditures -- trillion or near-trillion-dollar deficits every year through 2021 -- so Obama is clearing a very low bar.
Here is a more accurate description of what Obama's 2012 budget plan does: It adds $8.8 trillion in new debt between today and October 2021. That number would be even larger, except that Obama's budget also raises taxes by $1.5 trillion on corporations and high-income earners, imposing higher marginal rates and new limits on charitable and mortgage deductions. In Obama's fiscal 2012 budget, no hard choices are made on the key issue of entitlements, but individuals, families and business owners will still see their taxes go up. And Obama's plan for next year actually includes more discretionary spending than last year at the height of stimulus expenditures.
This fact puts some perspective to the comments of Obama's Republican critics. Sen. Mitch McConnell, R-Ky., remarked that under Obama's plan, "the president's vision of a future of trains and windmills is more important than a balanced checkbook." Rep. Jeb Hensarling, R-Texas, said that "President Obama's budget should have been printed in red ink instead of black." Three months after Americans expressed their deep anxiety over the unwarranted and dangerous explosion of federal spending and power under Obama by giving Republicans their biggest midterm congressional election victory since 1938, Obama is still demonstrating that he doesn't get it -- Americans want government spending cut, government debt eliminated and Washington politicians in both parties to wise up or be replaced.