Yesterday was an important moment in recent US history. For the first time in four years, the Democrats who control the Senate put forth a budget proposal. It has not yet been adopted by the entire Senate, but at least America can now see the thinking of Democrats when it comes to taxes and spending. Here are a few highlights:
1) Over the course of the next ten years, the budget never balances. Indeed, the deficit never gets lower than $400 billion in any year. That means that total national debt will increase by about $8 trillion according to the Democrats own numbers.
2) In order to get to these results, the Democrats make certain assumptions about the rate of growth of the US economy during the next ten years. For background, let me remind you that last quarter, the economy grew at the annual rate of 0.1%. Further, over the last five years, two had GDP contract, and the three others showed growth rates of 1.7%, 3.0% and 2.2% (which was for 2012). So rate do you think that the Democrats assume will be in place for the next four years? If you guessed 6%, you win the prize. America has not seen a six percent annual growth rate for decades. Indeed, we have not seen a 6% annual growth rate over a four year period since Reagan was president. Nevertheless, in order to make their numbers "work", the Democrats just assume that there will be growth at ridiculously high rates. To make things even worse, the Democrats assume that in the last six years of the next decade, the growth rate will be 4.5% annually. This too is a rate higher than America has seen at any time since the Democrats took control of the Senate in 2006.
3) Over the next decade, the Democrats foresee no changes of any sort to entitlement programs that actually are comprehensible. They do posit a cut of about a quarter of a trillion dollars to Medicare, but they also say that there can be no cuts in benefits for the program. Since all that Medicare does is to pay benefits, the entire point is nonsensical.
4) Over the next decade, the Democrats plan to cut defense spending. We have already been told that just the cuts already in place will hollow out the military and hurt our defense posture. But, this is where the Democrats want to cut.
5) The Democrats also call for mystery tax increases. Not surprisingly, the Democrats do not tell us what taxes are to be raised.
I understand that the budget proposals put forth by the House and the Senate are not meant to be action plans that we can expect to be adopted. The House plan is based in part on the repeal of Obamacare, something that is not possible until at least 2017 when president Obama leaves office. At least the House plan is based upon things that could possibly happen, however. The Senate plan is total fantasy. It lays out major spending increases and huge increases in debt on the basis that our economy will grow at an unheard of rapid pace for the next decade. It is a total joke and a disgrace.
I guess the only good news is that Patty Murray, the Democrat who heads the Senate Budget Committee did not base her plan on buying Powerball tickets and winning each week (although she came close.)
1) Over the course of the next ten years, the budget never balances. Indeed, the deficit never gets lower than $400 billion in any year. That means that total national debt will increase by about $8 trillion according to the Democrats own numbers.
2) In order to get to these results, the Democrats make certain assumptions about the rate of growth of the US economy during the next ten years. For background, let me remind you that last quarter, the economy grew at the annual rate of 0.1%. Further, over the last five years, two had GDP contract, and the three others showed growth rates of 1.7%, 3.0% and 2.2% (which was for 2012). So rate do you think that the Democrats assume will be in place for the next four years? If you guessed 6%, you win the prize. America has not seen a six percent annual growth rate for decades. Indeed, we have not seen a 6% annual growth rate over a four year period since Reagan was president. Nevertheless, in order to make their numbers "work", the Democrats just assume that there will be growth at ridiculously high rates. To make things even worse, the Democrats assume that in the last six years of the next decade, the growth rate will be 4.5% annually. This too is a rate higher than America has seen at any time since the Democrats took control of the Senate in 2006.
3) Over the next decade, the Democrats foresee no changes of any sort to entitlement programs that actually are comprehensible. They do posit a cut of about a quarter of a trillion dollars to Medicare, but they also say that there can be no cuts in benefits for the program. Since all that Medicare does is to pay benefits, the entire point is nonsensical.
4) Over the next decade, the Democrats plan to cut defense spending. We have already been told that just the cuts already in place will hollow out the military and hurt our defense posture. But, this is where the Democrats want to cut.
5) The Democrats also call for mystery tax increases. Not surprisingly, the Democrats do not tell us what taxes are to be raised.
I understand that the budget proposals put forth by the House and the Senate are not meant to be action plans that we can expect to be adopted. The House plan is based in part on the repeal of Obamacare, something that is not possible until at least 2017 when president Obama leaves office. At least the House plan is based upon things that could possibly happen, however. The Senate plan is total fantasy. It lays out major spending increases and huge increases in debt on the basis that our economy will grow at an unheard of rapid pace for the next decade. It is a total joke and a disgrace.
I guess the only good news is that Patty Murray, the Democrat who heads the Senate Budget Committee did not base her plan on buying Powerball tickets and winning each week (although she came close.)
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