Obama’s budget will top $1.8 trillion, four times that of the record set last year. It’s a shocking number, one that’s hard to wrap our heads around. The Democrats and President Obama beat former President Bush about the head and shoulders with his budget deficits that were a mere fraction of Obama’s. Let’s take a look at Bush’s deficits as compared to Obama’s:
Note how Bush’s deficits were actually declining until 2008. So, what excuse will the Democrats use now that Bush is no longer in office? Obama is at the helm and signed the $787 billion dollar boondoggle Scamulus bill all by himself.
With the economy performing worse than hoped, revised White House figures point to deepening budget deficits, with the government borrowing almost 50 cents for every dollar it spends this year.
The deficit for the current budget year will rise by $89 billion to above $1.8 trillion — about four times the record set just last year. The unprecedented red ink flows from the deep recession, the Wall Street bailout, the cost of President Barack Obama’s economic stimulus bill, as well as a structural imbalance between what the government spends and what it takes in.
As the economy performs worse than expected, the deficit for the 2010 budget year beginning in October will worsen by $87 billion to $1.3 trillion, the White House says. The deterioration reflects lower tax revenues and higher costs for bank failures, unemployment benefits and food stamps.
For the current year, the government would borrow 46 cents for every dollar it takes to run the government under the administration’s plan. In one of the few positive signs, the actual 2009 deficit is likely to be $250 billion less than predicted because Congress is unlikely to provide another $250 billion in financial bailout money.
The reality is this deficit will continue to balloon over the next few years as some of Obama’s economy killing policies are implemented. First is his Cap and Trade tax. I discussed it here, giving all kinds of details about how it will undermine our economy by burdening Americans with $3,900 in increased costs and extracting billions of dollars from the economy.
Second is Obama’s crazy corporate taxes. The US already has the second highest corporate tax in the world, but Obama wants to extract even more from US companies who have offices and plants overseas. Dan Mitchell at the Center for Freedom and Prosperity has a video that outlines very well how Obama’s corporate tax changes will make American corporations uncompetitive in the global marketplace, leading to even more American job loses.
No company will allow itself to be financially raped, which is what Obama’s plan would do. Instead, many American corporations may decide to move their headquarters overseas in an attempt to save their companies. Most American companies have stayed in the US only to build plants elsewhere in order to be globally competitive. However, Obama’s titanic tax burden may tip the scales, causing some of America’s corporations to seriously look at moving their operations’ headquarters overseas, costing even more American jobs.
Ed Morrissey at Hot Air writes that Obama’s corporate tax increases the amount to a global version of Smoot-Hawley:
It’s basically a Smoot-Hawley for the era of globalization. We’re going to see capital flight out of the US, and some nation with sensible policies will become the next center of high finance. If the Brits won’t wise up, it could be Ireland or the Netherlands, but if this keeps up, it won’t be New York for much longer.