President’s Budget Has $6 in Tax Increases for $1 in Spending Cuts
Last week, the Congressional Budget Office (CBO) scored President Obama’s budget. Although he pitched it as a “balanced approach” of spending cuts and tax increases it seems the President’s scales are out-of-wack. The AP reports [via Nick Gillespie] that the CBO found that deficit reduction comes mostly from higher taxes:
The congressional report said to achieve his $1.1 trillion in savings over the next decade, Obama relies on $974 billion in higher revenue and $172 billion in spending cuts. That is nearly a 6-1 ratio.
Obama's major revenue-raising proposals include limiting some deductions and exclusions for some higher-earning taxpayers, raising $493 billion over the decade; boosting tobacco taxes by $83 billion; and raising estate and gift taxes by $77 billion, the budget office said.
The ratio is worse if you use the Joint Committee on Taxation's estimate of about $1.2 trillion in new taxes.
You may be asking, “Didn’t we get a bunch of tax increases earlier this year?” Yes we did. Over $600 billion worth.
In a statement, House Budget Committee Chairman Paul Ryan (R-WI) observed:
The federal government will take in a record haul over the next ten years. And the President wants yet another massive tax hike.... The government is taking more from hardworking taxpayers only to spend more in Washington.
Indeed. We need comprehensive tax reform and entitlement reform instead of massive tax increases.