Barack Obama is expected to release his budget proposal next week. I guess all of the vacations, concerts and parties are to blame for his budget being two months late. But we are finally going to get it, and the details that have been released thus far are disappointing, though not shocking.
Barack Obama's budget will offer modest changes to Social Security. Essentially, the changes to Social Security would be slowing the cost-of-living adjustments, using a different version of the consumer-price index to calculate the growth of benefits. This idea alone already has some Democrats upset. Overall, his proposed changes to Social Security would reduce spending by $130 billion over 10 years.
The budget proposal from Obama will prohibit Americans from collecting unemployment benefits and disability benefits at the same time.
Obama would also replace the sequester cuts with other budget cuts, including cuts in payments to drug companies and farm subsidies.
But as expected, Obama's budget calls for more tax increases. He wants to place limits on the amount of money rich people can place in IRAs. He wants to limit deductions for rich Americans, which is what liberals call “closing loopholes.”
Overall, his proposal is said to reduce the deficit by $1.8 trillion over 10 years, with $1 trillion coming from tax increases. Oh and his budget never balances. Ever. Even with his precious tax increases.
John Boehner has said that Obama got his tax increases on January 1st and the discussion about revenue is over. Will that remain true? I agree with Boehner when he said that it is now time to tackle spending. We need a serious effort for reform that will grow our economy, not this mediocre approach from Obama to trim here, spend there and increase taxes even further. While I commend the President for at least starting the conversation about entitlement reform, we have a long, long way to go, and tying entitlement reform to tax increases is simply a mistake.