Obama FY 2015 Budget – More Reckless Spending
April 09, 2014
This March, President Barack Obama released his FY 2015 Budget request. Though his budget request is non-binding, it does give us insight into where the president’s priorities lay. In this case his chief priority seems to be more reckless deficit spending. In total his proposed budget would reach spending levels of $3.901 trillion.
The Federal Government spent $2.98 trillion in 2008, the year Obama was elected, and he is proposing to spend $1 trillion more than that in FY 2015. The stimulus, passed days after Obama entered office with the help of a Democrat-controlled Congress helped ramp up spending over 2009-2011, but with the help of a GOP-controlled House, the tide of spending began to slightly recede next two years, but not by much.
President Obama’s new budget would increase outlays by nearly $450 billion from FY 2013 – mostly on domestic programs. Spending in 2015 would hit 21.4% of GDP, up from 20.8% in 2013. Outlays would rise by another $1 trillion by 2020, much of it fueled by the exploding costs of ObamaCare, and would reach a record-setting $6 trillion by 2024.
To help pay for his priorities, the president has added more tax increases on businesses to finance more tax credits for workers. Millions of Americans already pay no income taxes, and Mr. Obama would take more of them off the rolls by expanding the Earned Income Tax Credit (EITC) to 13.5 million childless Americans—at a cost of $60 billion over 10 years. These credits are "refundable," which means you get a check even if you have no net tax liability. This is the same program the Treasury Inspector General has reported as losing at least $11 billion a year to improper payments.
Among other tax increases, the president proposes to raise $276 billion over a decade through changes to the international tax system, creating a new category for international digital transactions and measures to prevent companies from avoiding sales taxes through manufacturing agreements abroad. In fact, fully half of Obama’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 income Americans.