President Spending More Money We Don't Have

WASHINGTON, D.C. – U.S. Sen. Jim Inhofe (R-Okla.), a leading fiscal conservative, today blasted President Obama’s fiscal year 2013 (FY2013) budget as election year politics that will saddle future American generations with more debt.

“In an effort to win re-election, President Obama’s budget uses Washington gimmicks and accounting tricks to simultaneously spend more money on items important to his base while falsely claiming to reduce spending,” said Inhofe.  “He is trying to fund yet another failed stimulus, and it is simply irresponsible.  Under this President, we have now had four budgets with yearly deficits over $1 trillion each.  This budget continues Washington’s disastrous trend of spending money we don’t have.  He claims this budget has $4 trillion in deficit reductions.  In reality, he is proposing $8 trillion in more deficits and $11 trillion more added to the debt.  He increases spending on his liberal leaning agenda items on the backs of dangerous defense cuts. 

“Once again, because of his failure to provide leadership, the President is turning a blind eye to fiscal crisis that is facing this nation.  To further help pay for his big-government spending, the President is proposing $1.9 trillion in new taxes on families, small businesses and job creators – including those in the energy industry.   These industry specific tax increases will simply be passed on to families in the form of higher costs.  The best thing the President could do to help our economy, spur job creation, and assist those struggling to make ends meet would be to provide certainty by cutting government spending, reducing the tax burden, and ending over-regulation.  Instead, President Obama offers more of the same:  too much spending, too much borrowing, and too much taxation.” 

Annual Deficit Under Obama

Ø  FY09: $1.413 trillion (the highest in U.S. history)

Ø  FY10: $1.294 trillion

Ø  FY11: $1.299 trillion

Ø  FY12: $1.33 trillion

Obama’s FY2013 Tax Increases

Ø  Total tax increase of $1.9 trillion.

Ø  The largest tax increase in U.S. history, raising taxes by at least $1.5 trillion on families making more than $250,000 per year.

Ø  Imposes news taxes under the so-called Buffett Rule.

Ø  Increases taxes on the fossil fuel energy industry by roughly $41 billion over the next 10 years.

Ø  Increases taxes on the financial industry by $61 billion over the next 10 years.

Election-Driven Spending

Ø  $487 billion cut in defense spending over the next 10 years, and the first cut in military spending since the 1990s.

Ø  $8 billion in a new community college initiative.

Ø  $30 billion in new school construction spending.

Ø  A 55 percent increase in Obama’s Race to the Top education initiative.

Ø  $30 billion in new spending for teachers and first responders.

Ø  $1.4 billion in new energy spending, more than a third ($522 million) of which will be spent on increase in renewable energy programs.

Ø  $45 billion to extend unemployment insurance

Ø  $35 billion to establish a “universal dislocated workers” program.

Ø  $14 billion in additional Pell Grant funding.

Ø  $13 billion for a “Pathways Back to Work” fund.