In President Barack Obama’s first year in office, it might not have been fair to be too critical of some of his proposed spending. But there was a lot of red ink in his federal budget. And now President Obama has entered his second year — with a staggering $3.8 trillion budget that is expected to run at least $1.27 trillion in excess of revenue from taxes, which are still too high.
That’s alarming.
Tennessee’s fine senators were absolutely correct in their reactions:
Sen. Bob Corker said, “A quick review of the budget leaves you with a dizzying sense of the mind-boggling debt the country is amassing.
“It’s astounding and should send a clear message to the American people. Washington’s handling of fiscal matters is even worse than you think.”
Sen. Lamar Alexander said, “Here we go again. The president’s new budget is like the last one — more spending, more taxes and more debt — at a time when the national debt has reached an astounding level.”
President Obama said, “We won’t be able to bring this budget down overnight.”
How many trillions of dollars should we expect President Obama to add to the $12.1 trillion national debt? Shouldn’t we expect him at least to begin some substantial spending reductions toward eventual budget balance?
Taxes will bring in an expected $2.57 trillion. But spending is expected to total $3.83 trillion!
Here are some of President Obama’s proposed spending items by agency, as compared with current spending:
* Agriculture — $148.6 billion, a 9.7 percent increase.
* Commerce — $9.1 billion, a 34.4 percent decrease.
* Defense — $768.2 billion, a 2.2 percent increase.
* Education — $82.3 billion, a 32.8 percent increase.
* Energy — $26.8 billion, a 9.2 percent increase.
* Environmental Protection Agency — $9.9 billion, a 3.2 percent decrease.
* Health and Human Services — $915.5 billion, a 3.9 percent increase.
* Homeland Security — $44 billion, a 1 percent increase.
* Housing and Urban Development — $48.9 billion, a 9 percent decrease.
* Interior — $12.1 billion, a 5.9 percent decrease.
* Justice — $31.4 billion, a 5.7 percent increase.
* Labor — $117.5 billion, a 43 percent decrease.
* National Aeronautics and Space Administration — $19 billion, a 1.5 percent increase.
* State Department — $63.8 billion, a 2.3 percent decrease.
* Transportation — $79.2 billion, a 1 percent increase.
* Treasury — $560.9 billion, a staggering 40.1 percent increase, largely $499 billion in interest on the federal debt, that will go up to $15.1 trillion in 2011!
* Veterans Affairs — $121.7 billion, a 2.6 percent decrease.
* U.S. Army Corps of Engineers — $4.9 billion, 11 percent decrease.
These figures make it easy to see where lots of money will go — much from high taxes, much by adding to the national debt.
It is easy for government to spend “more” if it doesn’t have to pay for it immediately by taxing. It is difficult to cut spending and balance the budget.
When is the “right time” at least to begin fiscal responsibility, to reduce government spending and move toward a balanced budget?