President Obama laid out his far-left, collectivist second term agenda during his State of the Union address this week. He claimed that his long list of new spending proposals won’t add a dime to the deficit. It’s a shame nobody shouted out “You lie!” because that was one big whopper. According to the National Taxpayers Union Foundation, his proposals come to a total of $83.4 billion in new spending. This would be on top of the $16.5 trillion national debt, and the $1 trillion plus deficits they’re running every year.
In President Obama’s most expensive and widest ranging State of the Union Address yet, his proposals weighed in at $83.4 billion worth of quantifiable agenda items, according to National Taxpayers Union Foundation’s (NTUF’s) annual line-by-line analysis of the speech. This figure could grow as high as $100.4 billion depending on what the President aims to do to avoid the sequester. In either case, if the President intends to follow through on his promise that his speech would not “add a dime to the deficit,” individuals and businesses may be facing another round of tax increases.
“The speech gave the President the opportunity to preview his forthcoming budget,” said NTU Director of Research Demian Brady. “And although he said his agenda items would not increase the deficit, he spent far more time detailing new spending initiatives than how they would be ‘paid for.’”
While the President mentioned closing “loopholes” in the Tax Code, and made yet another reference to the well off doing their part when it comes to federal health care expenses, he failed to lay out a clear vision of exactly what tax policies would be altered.
NTUF’s key findings on the President’s fiscal proposals:
- By far the most costly single agenda item was “combating climate change”; a version of the ‘cap-and-trade’ bill to which Obama referred in his speech was priced at $282.4 billion total, or $56.5 billion per year.
- Other budget items in the President’s speech had a wide range of impacts, such as full passage of the American Jobs Act, $76.6 billion ($15.321 billion per year); initiating the “Fix-it-First” infrastructure repair program at $39.16 billion (or $7.832 billion per year); and, launching three new “manufacturing hubs” for $839 million (or $168 million per year).
- The President urged Congress to work with him to replace the sequester cuts, with unspecified “smart savings.” The White House and lawmakers would therefore have to find upwards of $85 billion in reductions over the next five years (or $17 billion on an annualized basis) to offset the canceled 2013 sequester alone. Furthermore, although the President said, “We will invest in new [military] capabilities, even as we reduce waste and wartime spending,” he failed to mention any specific structural changes to Pentagon spending that outside groups estimate could yield $50-$100 billion in annual savings.
He didn’t have to tell us how it will all be paid for, liberal economist Paul Krugman already did – middle class tax hikes and death panels.