President's Budget: $1.65 Trillion Deficit This Year

Statement

Following the announcement of President Barack Obama's proposed fiscal 2012 budget, Senator Rand Paul (Ky.) released the following statement:

"The budget introduced by the President today underlines the administration's lack of seriousness regarding our country's looming debt crisis. Instead of listening to the American people who have repeatedly called for less government, President Obama offered $1.5 trillion in tax hikes. The combination of taxing, spending, and borrowing is rampant throughout his proposal, yet there are no solutions offered to immediately address the biggest threat to our national security: our constantly growing debt and unbalanced budget. In fact, at no point does the president propose to balance the budget; he does, however, intend to double the debt in his first term."

Below are just a few problems found in the President's budget

Increases this year's deficit:

"The White House projected Monday that the federal deficit would spike to $1.65 trillion in the current fiscal year, the largest dollar amount ever, adding pressure on Democrats and Republicans to tackle growing levels of debt."(White House Expects Deficit to Spike to $1.65 Trillion, Corey Boles & Damian Paletta - Wall Street Journal 2/14/11)

Fails to follow Deficit Commission recommendations:

"And the proposed Obama budget reductions don't come close to the $4 trillion in savings recommended by a White House-appointed deficit commission."(Budget Plan Marks Start of Long Fight on Spending, Corey Boles - Wall Street Journal 2/14/11)

Raises taxes on everyone:

"However, Obama also would rely heavily on new taxes, to a degree unacknowledged by administration officials in recent days. His budget request calls for well over $1.6 trillionin fresh revenue over the next decade, much of it through higher taxeson the wealthy and businesses." (Obama budget would raise taxes on affluent, businesses, boost aid for innovation, Lori Montgomery-Washington Post 2/14/11)

"$1.5 Trillion in tax increases"over ten years.(Obama's FY2012 Budget: Taxes, Taxes, and More Taxes, Ryan Ellis -- Americans for Tax Reform 2/14/11)

"Under the Obama budget, tax revenues will grow from 14.4% of GDP in 2011 to 20% of GDP in 2021. By comparison, the historical average is only 18% of GDP."(Obama's FY2012 Budget: Taxes, Taxes, and More Taxes, Ryan Ellis -- Americans for Tax Reform 2/14/11)

Does not address entitlement crisis:

"…the president's budget shies away from pushing for any substantial changes to the entitlement programsMedicare, Medicaid or Social Security." (Budget Plan Marks Start of Long Fight on Spending, Corey Boles - Wall Street Journal 2/14/11)

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