Obama’s Budget: Fiscal Rigor Mortis

WASHINGTON--()--Today, Citizens Against Government Waste (CAGW) criticized President Barack Obama’s proposed fiscal year (FY) 2015 budget released on March 4, 2014, for requesting funding levels that exceed the hard-fought $1.012 trillion spending cap set forth by the Bipartisan Budget Act of 2013, and failing to introduce significant eliminations or reductions to hundreds of duplicative and mismanaged government programs, which would save taxpayers hundreds of billions of dollars annually.

The president’s $3.9 trillion budget proposal comes three months after he signed the Bipartisan Budget Act into law. The budget calls for $56 billion more in spending than the statutory limits allow, along with a tax increase of more than $1 trillion. The proposal includes dozens of new taxes, spending programs and government initiatives, but no plans to fix the nation’s fiscally troubled Medicare, Medicaid, and Social Security programs. The president’s budget would add $8 trillion in new debt over the next 10 years, bringing the total from $17.4 trillion to more than $25 trillion in 2024.

“Although very little of it is expected to become law or even be seriously considered via legislation on Capitol Hill, the President’s budget proposal is proof that the economy is far from the top of his list of immediate priorities,” said CAGW President Tom Schatz. “The President claims his proposal would create jobs, grow the economy, and expand opportunity for every American, but in reality, this proposal is nothing but fiscal rigor mortis; death by taxation.”

Half of the president’s new $56 billion suite of programs called the Opportunity, Growth and Security Initiative would be funded by cutting tax breaks on retirement accounts for top earners with annual income greater than $200,000. The proposal includes additional funding for projects like the Promise Zone Initiative to revitalize high-poverty communities, as President Obama intends to create 40 new Promise Zones on top of the 15 already in the works. The president has ballooned instead of contained welfare spending; and yet, 13 million more Americans are in poverty than when Obama took office.

The President’s “Cuts, Consolidations, and Savings” addendum includes proposals to reduce funding for a few programs (all addressed by CAGW in its Prime Cuts database), such as the Department of Housing and Urban Development’s Community Development Block Grants, the Office of National Drug Control Policy’s High Intensity Drug Trafficking Areas, Rural Hospital Flexibility Grants, and the Crop Insurance Program. The President’s budget would make a run at consolidating science, technology, engineering, and math education programs, proposing 31 program consolidations and eliminations, but there are no savings estimates on these consolidations.

“President Obama declared that the ‘era of austerity’ is over, yet such an era has never existed in Washington D.C., especially since he took office. The president continues to turn a blind eye to the fact that America is on an unsustainable financial path that continues to shrink the middle class, stymie economic growth, and drain the nation of its wealth,” continued Schatz. “While the budget is always a political document, this is a manifesto for members of Congress who want to expand the size and scope of government. The President claimed that the budget is about choices, and he is right; it was his choice to either make a viable attempt to address the serious fiscal issues facing the country, or ignore them, and he has unfortunately chosen the latter.”

Citizens Against Government Waste (CAGW) the nation’s largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.

Contacts

Citizens Against Government Waste (CAGW)
Alexandra Booze, 202-467-5318
Leslie K. Paige, 202-467-5300

Sharing

Contacts

Citizens Against Government Waste (CAGW)
Alexandra Booze, 202-467-5318
Leslie K. Paige, 202-467-5300