President Obama Lies About His Massive Deficits and Tax Increases

[kwilliams1130]

http://www.rushlimbaugh.com/home/daily/site_020110/content/01125106.guest.html

President Obama Lies About His Massive Deficits and Tax Increases

February 1, 2010

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RUSH: Here's Obama, announcing, ladies and gentlemen, that we're screwed -- in his own way.

OBAMA:  Ten years ago we had a budget surplus of more than $200 billion with projected surpluses stretching out toward the horizon.  Yet over the course of the past ten years the previous administration and previous Congresses created an expensive new drug program, passed massive tax cuts for the wealthy, and funded two wars without paying for any of it, all of which was compounded by recession and by rising health care costs.  As a result, when I first walked through the door the deficit stood at $1.3 trillion with projected deficits of eight trillion over the next decade.

RUSH:  That is a lie. By the way, Mike, we're going to go get audio sound bites five and six after that, I just decided. That is an out-and-out lie.  He said the same thing to Jeb Hensarling (R-TX) and the Republicans on Friday at the retreat in Baltimore, and Hensarling went on MSNBC today to put the lie to what Obama had said.  I've got those bites coming up.  But here once again: "It wasn't my fault. I didn't do anything! When I showed up here, Bush ruined the country. Bush did this, an entitlement program and all the tax cuts that weren't paid for. Bush did it. Bush did it!  All those irresponsible things were the previous administration."

He voted for all of it!  He voted for every spending bill that came up, from 2005 on.  You know, we've got a serious problem: A delusion.  We have a serious delusional problem here. And if the Medicare entitlement is so bad, if it's such a strain and drain on us then repeal it.  Just offer legislation to get rid of it, it's so bad.  Now, here's Jeb Hensarling. You just heard Obama say, "We arrived in office with a $1.3 trillion deficit and projected deficits of $8 trillion over the next decade."  Here's the truth: Obama's spending is much higher than Republican spending.  Obama is delusional, and being a little bit disingenuous -- and don't forget, nine years ago we were attacked on 9/11.

HENSARLING:  Well, either the president misunderstood the point or he just hasn't been well informed.  If you look at the 12 years when Republicans controlled the Congress, the average annual deficit was about $104 billion.  I'm not proud of that number.  That's too high.  But in the three years that Democrats have controlled Congress, the average annual deficit is now $1.1 trillion.  Do the math.  What used to be an annual deficit under Republicans has become a monthly deficit under Democrats.  And so when the president says, "I inherited a big deficit," I agree, but he inherited it from a Democratic Congress and only Congress can spend the money.  That's the point I was making.  Facts are facts, and maybe that's why he wasn't too happy with me.

RUSH:  At the retreat Obama actually implied Hensarling was lying in his question about this, but he's right. The Democrats ran Congress starting in 2007, all of 2008 -- and, of course, all of last year.  So, "Isn't the economy recovering?"  That was the next question that Hensarling got.

HENSARLING:  No jobs, no recovery.  I'm happy to see the GDP numbers, and I don't understand how you can slosh around so much money -- borrowing it from the future, bringing it into the president and not have an impact on GDP, so I'm glad to see that -- but if it's working, I guess it begs the question: Why does the president want yet another stimulus plan? I lose track, this is either Stimulus 3 or Stimulus 4 when you throw in the whole government omnibus plan.

REPORTER:  All right.

HENSARLING:  I personally don't think it's working, and small businesses are wondering: How are we going to pay for this debt?

REPORTER:  Yes.

HENSARLING:  And so that's one of the reasons that job growth is inhibited.

RUSH:  So there is no recovery -- and trust me, there's not.  The 5.7% GDP that everybody was going crazy about on Friday, you watch. It's going to be revised downward a couple of times. That won't get much news.  CNN today, you will not believe their headline over the Obama budget story: "Obama Maps Route to Lower Deficits."  Obama maps route to lower deficits! Folks, let me tell you what this business is all about.  All of this he announced today was a prelude to massive tax increases to reduce the deficit that he created.

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RUSH:  Now, normally, folks, I wouldn't spend much time talking about the president's budget. One is submitted every year.  I mean, you can't get more boring than that, and you can't get into more minutia than that. But this is one of the biggest problems that people are having with Obama and therefore it is important.  People are fed up with this spending. They're scared to death of it. They know full well what it portends. It portends massive tax increases for years on us, our kids and grandkids. It weakens the country.  This is just an abomination.  Nine years ago we were attacked.  Barack Obama cannot tell the truth. Constitutionally, he's not capable of telling the truth.  He has increased the deficit, not by twice, not by three times, but by four times -- and it was not necessary.  

Barack Obama was the most liberal member of the Senate when he was there, so reported by the National Journal.  Folks, he's just incapable of being honest.  Last year's deficit surged to $1.42 trillion, more than three times the record of the previous year.  An imbalance of $454.8 billion in 2008.  So Bush's last year budget deficit was $454.8 billion.  Obama's budget deficit last year was $1.42 trillion.  That's nearly $1 trillion more that he added to it in fiscal 2009.  This business that he "inherited a $1.3 trillion budget deficit" is a lie.  It's a lie through and through.  He has added $1 trillion.  You did this, President Obama, not Bush, not the Republicans. You did this.  Now, like I said in my letter to President Obama last week: It's time to man up and take responsibility for your disastrous and dangerous decisions.  This is childishly immature.

To make all these decisions -- to do all this spending and to want credit for it in terms of reviving the economy and so forth -- and then in the same sentence say you didn't do anything, that it was all Bush?  Okay, so if you're going to say we're reviving the economy then we gotta give Bush the credit for that, huh?  Because you're going to say all this deficit spending is George Bush's?  That's physically not possible. It's economically not possible. It's mathematically not possible.  You did it, sir, and now you're trying to say that all that spending saved the economy from a total collapse.  But then you say you didn't do it.  That Bush did it.  You cannot have it both ways.  Here he is describing the tax increases that are coming.

OBAMA:  I proposed a fee on big banks to pay back taxpayers for the bailout.  We're reforming the way contracts are awarded to save taxpayers billions of dollars.  And while we extend middle-class tax cuts in this budget, we will not continue costly tax cuts for oil companies, investment fund managers, and those making over $250,000 a year.

RUSH:  Well --

OBAMA:  We just can't afford it.

RUSH: (laughs) Now you say that.  There aren't any middle-class tax cuts.  There are one-time tax rebates, but there aren't any middle-class tax cuts, and the middle class knows it.  So, yeah. He's going to eliminate $39 billion in tax breaks that the oil companies get, which is going to have an impact on what they do.  And he's gonna let the Bush tax cuts expire, which is gonna take the top marginal rate up to 39%, and depending on the state you live in, if you couple that with Medicare taxes and your state tax -- the people that grow the economy, the people that invest in small business -- the people that hire people are going to be paying an effective national tax rate of over 50%, which means they'll have fewer discretionary dollars to invest and grow the economy, which is exactly what President Obama suggests.  Now, in the budget -- which it's a record budget.

Here's a quote: "The budget incorporates healthcare legislation currently before lawmakers." The budget has "$646 billion in projected revenue from a controversial cap-and-trade climate change bill that had been dropped from the budget, implying the White House is doubtful the measures will pass Congress," but the budget does incorporate "healthcare legislation currently before lawmakers." And, you should know, as we told you last week, that they are still trying for this.  They have not given it up.  The House and Senate Democrats are still plowing away behind closed doors and in secret to make their health care bill a reality.  But they have dropped... By the way, there weren't going to be $646 billion in projected revenue from cap and trade.  And, you know what?  They've got windmills in Minnesota.  

You know what?  The windmills have stopped working in Minnesota.  You know why?  Because it's cold!  So what are you going to do in Minnesota? When you get rid of all the coal-fired plants to provide electricity and heat, what are you going to do when the windmills freeze up and don't run because it's too cold?  It's just unbelievable.  Here are some other highlights: Obama on Monday "unveiled a budget that projected the 2010 deficit soaring to a post World War Two high of $1.56 trillion, or 10.6 percent of the economy, but falling steeply in following years to half that level by the time his term ends in 2012." Mmm-mmm. Mmm-mmmm.  That is to say, however, that Obama is promising that the deficits will go down right after he's reelected.

That's what he's promising.  Here's some highlights: "The budget forecasts cutting $1.2 trillion from the deficit over the next 10 years.  The largest saving will come from Obama's plan to allow 2001 and 2003 tax cuts on wealthy American families earning more than $250,000 a year to lapse on schedule next year, boosting revenue by $678 billion over 10 years," except that it won't.  Anybody want to take a guess as to why this tax increase will not produce that kind of revenue? (interruption) Yeah, you're exactly right.  Because when you tax an activity, you get less of it.  People are going to be less inclined to earn all kinds of money if over 50% of it is taken from them.  As such, I'll tell you something else is going to happen.  This is gonna cause an economic slowdown which means that the revenue produced by economic activity is going to go down.  

So that $678 billion revenue boost? You watch, just like they miscalculated these tax cuts and how much revenue they would produce -- they produced twice as much revenue as were forecast in a static way, particularly the capital gains tax cut. There was money flowing into Washington during the 2000s that people were stunned in Washington to see.  We don't know why they were stunned because it works every time it's tried.  By the way, this is known as "raising taxes." "Letting the Bush tax cuts expire" is known as "raising taxes," and this projection of $678 billion just happily assumes that people are just going to take it.  That these, quote, unquote, "wealthy Americans" will not change their ways to avoid the tax increase, which they will.  They'll find a way to avoid it or there will be some other result from it.  

It's not going to produce this kind of revenue and it's going to cause the economy even more trouble in getting restarted.  "Obama has proposed saving $250 billion from the budget by 2020," (scoffs) which is nothing, "by imposing a three-year freeze starting next year on domestic spending outside of national security."  Now, in truth, Obama is freezing a tiny portion of the budget that he has already jacked up to astronomical levels, and so they're going to be frozen at these high levels.  I mentioned to you last week: He's locked in these massive budget increases by saying that now there's going to be a freeze. "The budget will identify 120 federal programs to curb, including the NASA space agency's Constellation project to develop human spaceflight and return an American to the moon." Now, it's funny how nobody in our great and terrific watchdog media have noted that Obama is reneging on a campaign promise made back when Florida was very much in play between himself and Mrs. Clinton. 

When Florida was in play, Oh, yeah! Manned space flight? I'm all for it. We're going to go for it." Now he's turning NASA into a monitoring agency for climate change, and you know what we've learned now?  We've furthermore learned that this Himalayan stuff -- the fallacious report of the melting glaciers up there -- was based on one student's dissertation, which led to UN's IPCC to adopt that belief.  The whole thing is a hoax.  Only Obama does not see it that way.  Look, I could go on and list all of these things, but it adds up to: More income redistribution, higher taxes, a declining standard of living, exactly what Obama intends.  There's two things: This budget also has elements in it that should be called the Reelect Incumbent Democrats Act of 2010.  That's what I think it should be called.

"With women's advocacy groups voicing growing unease with administration policy, President Barack Obama will propose a $3.8 trillion budget on Monday that would exempt programs for women and girls from spending restrictions he's proposed for other programs." So just as the unions have been exempt from paying taxes on their health care plans, "women and girls" are being exempted from "spending restrictions," i.e., the freeze.  "Obama aides denied political calculation was behind the emphasis on programs for women and girls, detailed in a budget document obtained by McClatchy..." This is  no more than political hackery, and then there's this: "President Obama proposed a $33 billion package of tax breaks Friday aimed at encouraging small businesses to hire new workers, the latest in a string of administration attempts to accelerate job creation," and they interview some small business people here in the Washington Post, and it's clear that tax breaks are not what lead people to hire.  Growing businesses, a growing economy, an expanding economy is what causes people to hire -- and that is not happening.  

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RUSH:  A $33 billion tax break plan to boost jobs.  This is not how you boost jobs.  In fact: "The National Federation of Independent Business said a well-intentioned..." See, they're trying to be nice and not make little Barry Soetoro mad: "[A] well-intentioned tax credit proposal is not going to convince small business owners to add jobs if they don't have work for those employees to do."  It's just that simple.  Obama doesn't understand that.  To Obama, jobs are what businesses have to do morally so people have health care or so that people have income.  That's what businesses are for, and to be raped by government.  That's their purpose.  Now, as you listen to all the news reports of Obama's $3.8 trillion budget, which goes up to Capitol Hill today, the Heritage Foundation wants you to listen intently for a couple of points. 

Obama's making a big deal out of the fact that there are "spending freezes" in the budget.  You'll hear him talk about a "spending freeze," but if you listen closely you'll learn that the freeze is only on one-eighth of the budget.  And within the seven-eighths that are not frozen, Social Security and Medicare are front and center.  Now, review and analysis of Obama's proposed budget is almost immediately available to Heritage Foundation members.  They stand for reduced government among other principles.  So looking through this charade is tough on them, but they are thorough.  If you want a breakdown of just how rotten and horrible and damaging this budget is, the Heritage Foundation report is where you should go.  Their researchers are all over it so that you can understand it all and see the truth for what it is.  But you gotta become a member.  There's always a catch to good stuff.  You gotta become a member but it's only 25 big smackers each year.  Go to AskHeritage.org and make yourself a member today like I am.  Everybody wants to be me and you can get close to that by doing things I do, and this you can do.  Go to AskHeritage.org and become a member.  You choose the level of contribution you want to make.  This is one area where there is no government mandate.  AskHeritage.org. Go online today.

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RUSH: Audio sound bite time.  Now, this is, I guess, what we've come to expect.  Here's Obama saying that he "rejects grandstanding." But this sound bite, as you will hear, lays the groundwork for massive tax increases.  He insists he's cutting the deficit.  Just listen to this.  It speaks for itself, but even despite that I will provide instant analysis.

OBAMA:  We simply cannot continue to spend as if deficits don't have consequences, as if waste doesn't matter.

RUSH:  Stop.

OBAMA:  Is it the hard-earned --

RUSH:  Stop it.  Recue it.  Who has been doing that?  This is surreal.  "We simply cannot continue to spend as if deficits don't have..."? Well, nobody's been doing that but you, sir, and your Democrats in Congress.  Nobody is suggesting but you all of this spending.  This is Machiavellian.  This is delusional.  How stupid does he think we are?  How dumb does he think we are?  "We can't continue to spend" as though he just arrived?  Is this his first day on the job?  His deficit last year is $1 trillion higher than George W. Bush's projected deficit -- $1 trillion higher!  It's almost three times what Bush's deficit was -- and it's Obama's spending and his proposed spending that did it. Okay, here's the whole bite.

OBAMA:  We simply cannot continue to spend as if deficits don't have consequences, as if waste doesn't matter, as if the hard-earned tax dollars of the American people can be treated like Monopoly money, as if we can ignore this challenge for another generation.  We can't.  In order to meet this challenge, I welcome any idea from Democrats and Republicans.  What I will not welcome, what I reject, is the same old grandstanding when the cameras are on and the same irresponsible budget policies when the cameras are off.  It's time to hold Washington to the same standards families and businesses hold themselves.  It's time to save what we can, spend where we must, and live within our means once again.

RUSH:  Folks, I'm having trouble not using profanity here.  This is just an out-and-out, bold-faced lie.  I said it this morning.  This has no grounding in reality.  He has just -- if we're to take this seriously and connect the dots -- ripped himself to shreds.  He's just given us a bunch of reasons not to reelect him.  He just talked about how irresponsible he has been.  That's what you're doing here.  He doesn't welcome any idea from Republicans.  "What I will not welcome is the same old grandstanding."  Grandstanding?  He is the only one who grandstands.  Republicans can't get enough coverage to grandstand.  When's the last time you saw a Republican get any meaningful coverage on TV to grandstand or look like an idiot, either one?  You don't see it.  "It's time to hold Washington to the same standards that families and businesses hold themselves. It's time to save what we can, spend what we must, and live within our means"? as though he just took office today?  He is ripping his own administration and policies to shreds, while trying to make you think that all of this is the result of George W. Bush. 

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