'Obama's "Plan" Adds $8.6 Trillion to the Debt'
8:41 AM, Dec 13, 2012 • By DANIEL HALPER
"President Obama's 'Plan' Adds $8.6 Trillion to the Debt," the minority side of the Senate Budget Committee contends. Here's a chart put together by the Republicans on the committee to explain how Obama's plan adds to the debt:
The $400 billion in deficit reduction would be achieved by a $1.6 trillion tax hike, which Obama has proposed as part of the "fiscal cliff" deal.
With Obama's latest plan, debt in 2022 is expected to be $25.4 trillion; otherwise, in ten years, it is expected to be $25.8 trillion.
"With the adoption of the Budget Control Act (which immediately raised the debt ceiling $2.1 trillion in exchange for $2.1 trillion in spending cuts over 10 years), the United States is presently on course to add $9 trillion to the gross federal debt by 2022," write the Republicans on the Senate Budget Committee.
"Though the President has said his budget plan would help 'pay down the debt' and represents a “balanced approach” to $4 trillion in deficit reduction, both his budget and his fiscal cliff proposal offered by Secretary Geithner achieve only $400 billion in 10-year savings—meaning that the United States will accumulate $8.6 trillion in new gross debt instead of $9 trillion. Rather than using higher taxes to reduce the deficit, the President’s $1.6 trillion tax hike funds a $1.2 trillion spending increase consisting of: new stimulus measures (at a cost of $50 billion), an unpaid for “doc fix” (almost $400 billion), a continuation of the payroll holiday ($90 billion) and extended unemployment insurance ($26 billion), and, most significantly, the complete repeal of half of the BCA spending cuts. All these increases are only partially offset by a $600 billion spending cut, resulting in a net $1.2 trillion spending increase. His tax increase thus nets only $400 billion in reduced deficits, allowing the debt of the United States to climb past $25 trillion over the next decade."
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