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Political News and Commentary from the Right

More “Chains you can believe in”

Last week we told you about the drastic increase in individual tax receipts included in President Obama’s proposed budget. This week we dug a little deeper and found more interesting numbers the President isn’t mentioning in his rhetoric.

The following charts relate data from the White House Office of Management and Budget’s Summary Tables for Obama’s proposed budget.

Last month, Democrats in the US Senate voted to raise the national debt limit to $14.3 TRILLION–a 15% increase over the current $12.4 TRILLION. But the following two charts show President Obama plans on many more such increases over the next 10 years. In fact, his budget anticipates the national debt will grow to almost $25 TRILLION by the year 2020. Even worse, his plans include taking on more debt than the total output of the economy by 2013! The debt to GDP ratio stood at 83% last year, but the economic genius residing in the White House intends to take it to 105% by the end of the next decade!

It’s also obvious from the preceding charts that President Obama’s talk of cutting the deficit is nothing more than hollow rhetoric. President Bush’s last deficit was around $450 billion. Obama is projecting the smallest deficit over the next 10 years to be more than $700 billion. And his budget predicts a return to TRILLION DOLLAR DEFICITS by 2020!

What’s worse, his projections depend on drastic increases in taxes and extremely optimistic growth in GDP. So the actual numbers are very likely to be worse than he’s predicting.

Another great graphic that points out just how dishonest the President’s rhetoric is comes via The Heritage Foundation. They’ve put together the following chart that shows the difference in OMB’s projections and the Congressional Budget Office’s baseline. The most interesting thing about this comparison is the fact the CBO’s baseline projections are based on current policies and laws, while the President’s projections take into effect his proposed changes in those policies and laws.

In other words, if Obama would leave things as they are, we could expect the CBO’s numbers to be right. But the chart below shows his proposed changes will actually INCREASE the deficit in every one of the next 10 years!

For the President to attempt to sell his budget as one that cuts the deficit is nothing less than outright deceit! The yoke of debt each and every one of us is burdened with becomes heavier with every word Obama reads off his teleprompter.

The National Debt Clock estimates every man, woman and child in the US currently shoulders a share of the National Debt equal to $40,128.80. Assuming the Debt Clock’s estimate of the current US population is accurate, and an annual population growth rate of 3% over the next 10 years, each citizen’s share of the National Debt will grow to $64,182.19 under Obamanomics by 2020.

Obama promised “Hope & Change” on the campaign trail. But his changes are destroying hope and binding us with chains of debt!

February 9, 2010 Posted by | Economy | , , , , , , , , | 2 Comments

CBO: Reid’s bill WILL increase deficit by $170 billion

Once again, Democrats are telling bold-faced lies when they claim their legislation will reduce the deficit and extend the life of Medicare! This time they’re using Bernie Madoff/Enron style accounting tricks to camouflage their lies.

In response to a request by Senator Jeff Sessions, the CBO today released a statement correcting the misrepresentations being propagated by Senate Democrats. Reid, President Obama, and other Democrats are claiming the CBO score indicates the Senate bill will reduce the deficit by $130 billion over the next 10 years and add 9 years to the lifespan of Medicare.

But the CBO says not so fast. It appears Democrats took great care in phrasing their request to the non-partisan agency, playing a sort of shell game to fool the American people with a slight of hand. Evidently, hen Harry Reid requested the CBO score, he only asked for the impact on the Medicare trust fund balance. That doesn’t sound so bad until you understand what the CBO calls “Trustfund Accounting.”

The Medicare Trust Fund doesn’t actually hold hard assets. It’s more like a drawer full of IOUs issued by the federal government, if it’s operating in the black. The Trust Fund takes money in and pays money out. If it takes in more than it pays out, the government takes the surplus and issues the Trust Fund an IOU.

Now it’s not like the government puts that money in a savings account. Our never frugal government spends that money it collected to pay for Medicare on something else! No plan on how to pay off the IOU when it comes due either. Just pass the debt on down to future generations.

The Trust Fund Accounting system used by the CBO doesn’t account for what happens to the cash once it’s removed from the Trust Fund, or the government’s ability to repay the borrowed money. This accounting method treats Uncle Sam’s IOU the same as you and I treat our bank account. Just like the folks at the Medicare office could walk up to a teller and say “I’d like to withdraw all our money.”

The problem is, there is no money. It’s just a piece of paper that’s waiting for some future Congress to raise taxes on our children to repay the money.

In the current legislation, the CBO saw Reid’s bill would result in approximately $300 billion more being taken into the Medicare Trust Fund than it would pay out in the next. So Obama, Reid, and Pelosi will write out a professional looking IOU, hand it to the Medicare Trust Fund accountant and leave with $300 billion of taxpayers’ money. That money will be used to create new federal programs, fund abortions, pay bureaucrats, and other creative ways government finds to squander money.

“To describe the full amount of HI trust fund savings as both improving the government’s ability to pay future Medicare benefits and financing new spending outside of Medicare would essentially double-count a large share of those savings and thus overstate the improvement in the government’s fiscal position.”

But to make it look nice, Reid and his Democrat cohorts rigged it to look like $130 billion won’t be spent. So, in effect the deficit should be reduced by $130 billion. Sounds good right?

The problem is, they’re also trying to claim the entire $300 billion (of which they’ve blown $170 billion) is used to extend the viability of Medicare. Put simply, they want to spend the $170 billion now and say the $170 billion IOU they issued is going to keep Medicare going. Now, no one can be 100% sure, but it seems like doctors will probably start quitting when they begin getting government IOUs instead of greenbacks for compensation!

Obama, Reid, and other Democrats are counting that $170 billion twice. They’ve taken $300 billion from us they say we’ll get back in Medicare benefits. They’ve spent all but $130 billion of it, but continue to claim they’ve set aside the entire $300 billion for our benefit!

Here’s the real kicker. The only way we get that $170 billion in benefits we were promised is to raise taxes on our children!

This is nothing short of stealing from future generations! Harry Reid and his Democrat Senate comrades are nothing more than two-bit con artists who would sell our children’s future to satisfy our President who suffers with an “unprecedented” level of egotism and narcissism.

Tomorrow at 7:00 AM Eastern they vote to saddle our children and grandchildren with higher taxes, higher deficits, and a lower standard of living. Tomorrow morning, they will slap themselves on the back and congratulate themselves for conning us out of more of our money.

They’ll be home until the middle of January. Make a point of letting your Senators know you haven’t been fooled. Make sure they understand you know what they’re up to, and that you’ll do everything in your power to send them home when they’re next up for reelection.

December 24, 2009 Posted by | Health Care | , , , , , , , , , | 5 Comments

Many of Obama’s Claims about Health-Care Reform Have Been Debunked

By Fred Lucas, Staff Writer

(CNSNews.com) – While President Obama will likely make news tonight by telling a joint session of Congress what he wants and is willing to accept from a health care reform proposal, he may also repeat some points he has made over the past few months that have been refuted by non-partisan sources.

The Congressional Budget Office, run by Democratic director Douglas Elmendorf, as well as other government and non-profit organizations have produced analyses that dispute several assertions by the president and Democratic members of Congress.

The president, for example, has said health-care reform will be deficit neutral, does not steer tax dollars to abortions and that there are 46 million uninsured Americans. But each of these claims has been disputed by non-partisan sources.

The legislation proposed by Democrats in Congress and backed by Obama would establishing a government plan to compete with private insurers, mandate employer and individual coverage and prohibit insurance companies from denying coverage based on a pre-existing condition.

More

September 14, 2009 Posted by | Health Care | , , , , , , , | Leave a comment

$1 TRILLION for Democrats’ Criminalization of America’s Health Care

ARRA News Service: Yesterday, House Speaker Nancy Pelosi and other House democrats rolled out their health care plan called “America’s Affordable Health Choices.” Part of their plan would force employers to offer workers health coverage or face severe fines. Also it would forcw individuals to participate in a health insurance plan or face penalties that would generally vary with their income level. Maybe it should have been called “Criminalizing of America’s Health Care” or the “Destroy Individual Choices in Health Care.”

The Heritage Foundation is reporting the cost of the bill at $1.3 Trillion. The bill is 1,018 pages and comes to $1.264 billion per page. It even includes universal abortion coverage at taxpayer expense. The Congressional Budget Office, not a conservative “right minded” think-tank, reported that the health care reform plan proposed by House Democrats on Tuesday will add more than $1 trillion ($1,042 billion) to the national federal budget deficit over 10 years (2010–2019) . And, this is only their preliminary estimate of the damage.

The CBO report states that its cost estimates are not comprehensive. They are only preliminary as administrative and other costs are not yet projected. Heritage advises, “But even this analysis understates the true costs of the bill. The CBO only scores bills on a ten-year time frame, and House Democrats have designed their bill to obscure the catastrophic long-term fiscal path on which it places our country.”

Heritage identifies that according to the CBO, the cost for the first four years is just $84 billion, but then it accelerates sharply. By 2019, the new entitlement is set to cost American taxpayers $254 billion. So while many Americans may look at the $1.3 trillion price tag over ten years and conclude the plan will cost $130 billion a year, in reality it will cost nearly double that. By backloading all the spending, the House is hiding the true cost of their plan from the American people. Between 2018 and 2019, federal costs for the new entitlement and the enlargement of Medicaid would increase by a combined 8.9%.

Last week CNS News reported that Rep. Charlie Rangel (D-NY) introduced legislation calling for a $540-billion tax hike to pay for the health plan that President Barack Obama insists will be “deficit neutral.” This tax is a new surtax on households earning $350,000 and above. It starts at 1%, bumping up to 1.5% at $500,000 in income and to 5.4% at $1 million. Since many small business owners fall within this income range, this surtax will also be a huge job killer.

The Washington Post writes: [T]here is no case to be made for the House Democratic majority’s proposal to fund health-care legislation through an ad hoc income tax surcharge for top-earning households. …There is simply no way to close the gap by taxing a handful of high earners. … Pretending that “the rich” alone can fund government, let alone the kind of activist government that the president and Congress envision, is bad policy any way you look at it.

Summary: President Obama, Democrats in Congress, powerful special interests and influential lobbyists are hard at work in Washington, D.C. trying to drastically change our current health care system. They are seeking to replace it with a “nationalized health care ” system where the politicians and government officials will dictate the kind of medical services you and your family receive and the rules under which you access care and coverage. Read : Patients First – Vote No on Government Run Health Care and then take action.

July 15, 2009 Posted by | Health Care | , , , , , , , , , , , | 1 Comment