On Thursday, February 16, 2012, testifying before the House Budget Committee to Chairman Paul Ryan, U.S. Treasury Secretary Tim Geithner told the following:
“We’re not coming before you to say we have a definitive solution to that long-term problem. What we do know is we don’t like yours.” (This quote is at the 4:45 mark in the video below)
Chart provided by U.S, Sec Treasury Timmy Geithner
Actually, President Obama sort of did have a definitive solution. He created a debt commission, which devised a long-term debt reduction plan. Which the president rejected. And instead, we get Obama's new budget proposal, which makes no effort to deal with Medicare, Medicaid, and Social Security—the long-term drivers of U.S. federal debt. The debt curve never gets bent, as the above White House chart shows from the White House Office of Management and Budget.
It just goes up and up and up until the end of our universe or the end of our economy as it is struck by a Greek-style debt crisis.
The bipartisan Committee for a Responsible Federal Budget says this about the president’s plan:
Over the long-term, the President’s budget would not constrain rising debt, as retirement and health care costs continue growing faster than the economy. According to the Administration’s own estimates, debt would grow as a share of the economy past 2022 exceeding 93 percent by 2035 and nearly 125 percent by 2050. These levels would be both economically constraining and ultimately unsustainable.
Well, at least the president’s budget keeps the debt problem from getting any worse over the next decade, right? Not really. Despite $1.7 trillion in tax increases, debt as a share of GDP—already at a historically high level—actually ticks up a bit to 76.5 percent from 67.7 percent in 2011 and 74.2 percent in 2012.
ALL THE BUSH TAX CUTS EXPIRE - NO MORE $1000 PER CHILD DEDUCTION, ONLY $500, INCOME TAX STARTS AT $0 TO $8,500 BRACKETT AT 15% RATE - EVERYONE PAYS THEIR FAIR SHARE NOW UNDER OBAMA TAX PLAN!
~ REMEMBER...
VOTE 2012! ~
