Pethokoukis also points out the cynically dishonest projections for economic growth upon which much of the budget is based: 3.4% growth in 2015, 4.1% in 2016, 4.1% inn 2017, and 3.9% in 2018. Pethokoukis notes that the “U.S. economy has only seen a run like that three times in the past four decades. And the Obama Boom is supposed to happen amid rising tax rates, interest rates, and debt? Good luck, Mr. President.”
Of course, it has no chance of becoming law. But as a campaign document, it is quite instructive:
His spending “cuts” included in the budget do not touch entitlements, forcing the nation’s defense to take the brunt of the cutbacks. The defense budget will fall 4%. In practical terms, it means slashing eight Army combat brigades, six Marine Corps battalions and 11 fighter squadrons, and will start to pull two Army brigades out of Europe.
Meanwhile, the Department of Energy becomes a huge winner, increasing its budget a whopping 41% — mostly to fund Obama’s green energy fiascoes. The Department of Justice makes out a big loser, with its budget falling 15%. But it is where the cuts will be made that will rile Republicans. The president proposes to massively cut a program that reimburses states and cities for jailing illegal immigrants for committing crimes. Funding would fall from $240 million to just $70 million.
The Hispanic vote is vital to his re-election and allowing illegal aliens who have committed crimes out on bail or to simply disappear will no doubt sit well with liberal Latino groups who have been agitating against enforcing any of the nation’s immigration laws.
For some reason, the president is proposing a big increase for the Commerce Department. This useless federal bureaucracy will get a $10 billion gift “to help build an interoperable public safety broadband network.” Critics point out that the government has already spent $13 billion on radio equipment since 2001 and that a public auction of frequencies — ostensibly to recover the costs of the program — won’t realize nearly enough to pay for it.
Agency after agency, department after department, will see new spending. For the Department of Transportation, a pork-laden, five-year $476 billion highway bill and a $50 billion “infusion” for roads, bridges and other transportation infrastructure. Did we mention the $47 billion for high speed rail? Such trivialities are an asterisk in this budget.
Foreign aid gets a boost, including $800 million for the “Arab Spring.” The president wants to create a “Middle East and North Africa Incentive Fund” — explained in the budget document as a fund that “will provide incentives for long-term economic, political, and trade reforms to countries in transition — and to countries prepared to make reforms proactively.” Analysts are unsure if this is “new money” or simply collecting cash from other programs and placing it in a fund with a new name.
No comment yet from the Muslim Brotherhood whether Shariah finance rules will allow them to participate in the “incentives for reform” in economic, political, and trade matters.
Meanwhile, Medicare and Medicaid spending continues its unsustainable pace, rising 9% in FY2013. The administration is claiming $360 billion in savings as a result of paying doctors and hospitals less for Medicare services — the old “doc fix” that is added to HHS budgets every year and is shot down every year by Congress and the AMA.
One might expect the “green” energy initiatives, the defense cuts, and the massive increase in transportation spending where Obama’s union allies will get a windfall. But it is how the president wants to raise taxes that the class warfare theme of his campaign for re-election and, what can only be described as his hatred for the successful, the entrepreneur, the savvy investor, and the small business person, becomes apparent.