National Debt Up $3 Trillion on Obama’s WatchPosted by Mark Knoller
New numbers posted today on the Treasury Department website show the National Debt has increased by more than $3 trillion since President Obama took office.
The National Debt stood at $10.626 trillion the day Mr. Obama was inaugurated. The Bureau of Public Debt reported today that the National Debt had hit an all time high of $13.665 trillion.
The Debt increased $4.9 trillion during President Bush’s two terms. The Administration has projected the National Debt will soar in Mr. Obama’s fourth year in office to nearly $16.5-trillion in 2012. That’s more than 100 percent of the value of the nation’s economy and $5.9-trillion above what it was his first day on the job.
Mr. Obama frequently lays blame for soaring federal deficits on his predecessor.
“By the time I got into office we already had a $1.3 trillion deficit and we had exploded the national debt,” he said last month during one of his backyard chats with Americans.
Just last Friday, the Treasury Department portrayed it as good news when it reported that the federal deficit in the fiscal year that ended September 30th was $1.294 trillion. That’s less than the $1.416 trillion deficit accrued in 2009 – the largest federal deficit ever recorded. It was also less than the $1.556 trillion that had been initially projected for 2010.
The soaring deficit and Debt is one of the reasons Mr. Obama is adamantly opposed to extending tax cuts for Americans earning over $250,000 a year.
The ten year cost would total $700-billion and Mr. Obama says it would needlessly add to the deficit and Debt.
“And then we’ve got to pay interest to China or whoever else is willing to buy our debt,” he repeatedly argued in recent weeks.
President Obama and Congress await recommendations on ways to reduce federal deficits from the National Commission on Fiscal Responsibility and Reform.
The 18-member panel will report December 1st – after the midterm election.
The Commission, chaired by Democrat Erskine Bowles and Republican Alan Simpson, was established by Mr. Obama to provide recommendations on how to “put the budget into primary balance, meaning that the federal government will pay for all of its programmatic obligations.”
The federal budget was last in balance from 1998 to 2001.
Where do I begin? Mr Knoller reports that the President has increased the national debt higher that even GWB. We all get that Bush cut taxes and did not cut spending. We knew that back in 2007. Then Bush created TARP. Bailing out Wall Street and not the people. We get all that but Mr Obama ran on the opposite of Bush and did the same thing. GM is a good example. Wall Street is well represented in this administration and they even passed a Wall Street reform bill to make the bailout of failing firms a government process. Does that affect you? If you say yes it will protect me you are wrong. It is not to protect YOU! It is to protect profits. Company failures are a naural part of the business cycle. Government intervention only puts the weight of that on the entire nation not the stock holders of that company. (I am aware we have all been putting money in the stock market through the IRA’s and retirement plans.) But letting a business fail is like a tree falling in the woods. The decay feeds the rest of the system.
Now for Mr Knoller’s comments on the looming tax increases. There are two dynamics at play here. Obama cut your taxes and letting Bush tax cuts expire is not an increase. The President loves to tell us that by reducing the withholding of our taxes we got a tax cut. The IRS has a payment calculator page on their site. If we all got a tax cut why does it contain this warning for taxpayers
Who Can Benefit From The Withholding Calculator?
- Employees who would like to change their withholding to reduce their tax refund or their balance due;
- Employees who may need to increase their withholding due to the Making Work Pay provision in the American Recovery and Reinvestment Act of 2009, that caused changes to the federal income tax withholding tables and may result in too little tax being withheld;
Anyone else still buying that this is a tax cut? This is a one-off credit to say he cut your taxes when what he did was increase the national debt to buy you off. He also decreased the amount of capital in the short-term with fake withholding reduction that you will still have to make up at the end of the year. And since over 30 Percent of the working class wind up not owing the government anything, to them this was a cut. But to people who PAY this was not and that is why we don’t see it. How do we know we don’t see it?
From Obama, the Tax Cut Nobody Heard Of
HUNTERSVILLE, N.C. — What if a president cut Americans’ income taxes by $116 billion and nobody noticed?
It is not a rhetorical question. At Pig Pickin’ and Politickin’, a barbecue-fed rally organized here last week by a Republican women’s club, a half-dozen guests were asked by a reporter what had happened to their taxes since President Obama took office.
“Federal and state have both gone up,” said Bob Paratore, 59, from nearby Charlotte, echoing the comments of others.
After further prodding — including a reminder that a provision of the stimulus bill had cut taxes for 95 percent of working families by changing withholding rates — Mr. Paratore’s memory was jogged.
“You’re right, you’re right,” he said. “I’ll be honest with you: it was so subtle that personally, I didn’t notice it.”
Few people apparently did.
Because my friends it was not a tax CUT. It was a withholding change with a one time tax credit.
Now we are poised to actually raise taxes and this President has political cover again when he says it is not a tax increase it is restoring a temporary tax cut. Well hold on to your assets folks. We are about to get hosed. If this congress let’s any part of this cut expire I firmly believe the business atmosphere will collapse.
Cut Federal Spending. Leave the taxes where they are. We do not need a balanced budget amendment we need people with spines in Washington to tell the special interests to deal with their own problems. Let the whining begin.
BTW anyone have a few 0’s in their pocket.