Obama's 2012 budget as much fiction as 2011's
Congressmen get their first look at President Obama's fiscal 2012 budget on Monday.
February 14th, 2011
10:28 AM ET

Obama's 2012 budget as much fiction as 2011's

President Barack Obama on Monday introduced his fiscal 2012 budget, a $3.7 trillion amalgamation of guesses and calculations which stands no chance of being enacted in the form the president’s bean counters put it together.

Before it gets back to Obama’s desk for a signature, the spending blueprint will go through no less than 40 congressional committees, 24 subcommittees, countless hearings and a number of floor votes in the House and Senate, CNNMoney’s Jeanne Sahadi writes.

Republicans wasted no time in letting the president know what they liked nothing. Here’s what House Speaker John Boehner said Sunday on NBC’s “Meet the Press”:

"He's going to present a budget tomorrow that's going to continue to destroy jobs by spending too much, borrowing too much, taxing too much."

Considering that all government spending originates in the House, where Boehner’s Republicans hold a 241-to-193 advantage, you can see how big a fight is ahead.

And recent history shows that all this may not mean anything. The federal government still hasn’t passed a budget for fiscal 2011, which began October 1.

The country has been paying its bills with continuing resolutions, the latest of which expires on March 4.

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Filed under: Barack Obama • Economy • Politics
soundoff (517 Responses)
  1. Jerry

    The joke is on the American people. We created a government elite, while we toiled. They set up hugh retirement accounts for themselves (check the retirement benefits of a congressman or senator), the best in the country. They tax the rich or those who work hard, take the taxes and give them anybody and everybody that won't work or go to school such as the illegal immigrants and those that are now 3rd or 4th generation welfare. It's a mess mis-managed by republicans and democrats. There is term limits, the American people need to vote them out after a couple of terms. It is total greed on our officals' part.

    February 14, 2011 at 3:17 pm | Report abuse |
  2. Katie

    I'm guessing cutting his salary and other top officials didn't make the list..

    February 14, 2011 at 3:23 pm | Report abuse |
  3. blackbelt3L

    This budget is purely fantasy – the Repub house better cut about $1.2 trillion off of it.

    February 14, 2011 at 3:24 pm | Report abuse |
  4. NoTax

    No Tax, and let's us bring second ammedment to the everyone

    February 14, 2011 at 3:28 pm | Report abuse |
  5. RunForTheHills

    Hahahah! He doubles spending in two years, and then cuts 1%, and thinks he's a hero... typical liberal.

    February 14, 2011 at 3:29 pm | Report abuse |
    • Macmaven

      The national budget was balanced before your Republican boy George Bush took office. He had to fund the false war and removal of privacy rights. The banking fiasco also happened primarily on his watch. How quickly you conveniently forget.

      February 14, 2011 at 4:58 pm | Report abuse |
  6. PJL

    Just FYI everybody, median income in the US in 2009 was 50k / yr. About 1.5 % of people earn 200 k / yr or above. This should give those making comments a "feel" for the income levels in the US. I got these numbers from Wikipedia which cites US census bureau. Median income adjusted for inflation has dropped in the past 30 years.

    February 14, 2011 at 3:30 pm | Report abuse |
  7. JoeT

    It is mathematically impossible to decrease government spending by more than 12% if you only consider up to 12% of the budget as negotiable.

    February 14, 2011 at 3:33 pm | Report abuse |
  8. PJL

    Shutdown unneeded military bases and weapons programs. And then listen to the Republicans howl. Stop giving aid to Iraq. let them sort it out. Also Egypt and Israel. Pull out of WTO and start imposing reasonable tariffs. The WTO does nothing but hurt countries. It needs to be abolished.

    Stop subsidizing oil companies. Let the market decide what the true price of oil is. Start charging oil and gas companies for the expense of military aid for any country they have a presence in. Also if any country an oil and gas company has wells in has a US base, charge them for that as well.

    February 14, 2011 at 3:36 pm | Report abuse |
  9. Maltheus

    100s of billions over 10 years??? Try you need to cut about $12 trillion in that same time frame to keep America from imploding under a mountain of debt. This ten year plan barely puts a dent in the growth of the deficit, much less the debt. Quite frankly, it doesn't even cover the increase in interest payments we're going to have to pay as we continue reissue our short term debt at higher rates. This is pure fiscal recklessness. Where are the grown ups already?

    February 14, 2011 at 3:37 pm | Report abuse |
    • PJL

      Too late. The American Empire is over. The Cold War is over and neither the US nor USSR won. China did.

      February 14, 2011 at 3:46 pm | Report abuse |
  10. AmericanStandardToiletBowl

    You CAN be an economic player in a global economy while remaining politically neutral and making sure you don't sell out the American worker. It is possible.

    February 14, 2011 at 3:43 pm | Report abuse |
  11. Boredatwork

    iFor those you propose a flat tax think about some math. If one person makes $30,000 a year and another make $750,000 a year and a flat tax of say 15% is made then person A would pay 4500 and person be would pay112500. Now although the richer person b pays more in taxes which one of the two is more affected: person a who now has a net income of 25,500 or person b with the net income of 637,500? A flat tax hurts those is less income! That 4500 is worth more to that lower income person than that 100000+ to the richer person.

    February 14, 2011 at 3:50 pm | Report abuse |
  12. schoolsub

    Here is an interesting fact: the total national debt is 14 trillion dollars. The total personal income of the American taxpayers (2009) was only 12 trillion dollars. How the h3ll did we get there? Answer: The idiots in Congress kept lowering the income tax rates over the last forty years. We need to go back to the progressive income tax rates of the fifties and sixties (top rate of 91 %). Now, we will never be able to pay off the debt unless we impose an average rate of about 50 %!!! Even with that, it will take four or five years to pay off.

    February 14, 2011 at 3:52 pm | Report abuse |
    • PJL

      No, the problem is deeper than Congress. People want something for nothing, they want services without taxes. It doesn't work that way. Corporations too want their free ride. The CEOs want their bonuses even to the point of killing the goose that laid the golden egg.

      February 14, 2011 at 5:00 pm | Report abuse |
  13. schoolsub

    Here's one step in the right direction: Seal off our borders to ALL imports. This will stop the flow of American job and dollars leaving the country. We can then restart our manufacturing base. Cars, steel, electronics, etc. would then have to be made by Americans in American owned factories.

    February 14, 2011 at 3:57 pm | Report abuse |
    • Boredatwork

      Iif we seal off imports other countries will stop taking our exports. So you want to limit America's market to be only domestic? Companies would suffer! Plus the wages would have to go down in order for companies to be profitable and for prices to be down as well. This is economic suicide.

      February 14, 2011 at 4:03 pm | Report abuse |
    • schoolsub

      Boredatwork: We've already committed economic suicide. Millions of American jobs lost to China, India, Korea, Malaysia, etc, etc, etc. A national debt of 14 trillion dollars is the fruit of that 'suicide'.

      February 14, 2011 at 4:13 pm | Report abuse |
  14. schoolsub

    Flat tax: If we were to use a flat tax, it would have to be about 30% just to break even; it would need to be much more in order to pay down the debt.

    February 14, 2011 at 4:00 pm | Report abuse |
  15. c+

    The problem is not Republican or Democrat! The problem is all of us. I have just sat here and have read all of you rail on each other on who's an idiot and who's fault it is. The bottom line is that until we all accept responsibility for the downward spiral of this nation then there will be no turn around in the future. We all as individuals can make the difference. Why are we waiting for Government to make a move. What moves are we making on our own. What jobs have we created for ourselves? Who is teaching us that the purpose for Social Security is to "suppliment our income" in retirement? Why aren't making it our business to take a personal interest in the education of our youth? The problem with America is that we spend too much time waiting for the Government to make it happen when they only have the power that we gave them.

    The Bible states that God has given US the power to create wealth. Let us all take that power back. For ourselves. For our children.

    AMERICANS MAKES AMERICA GREAT!Not republicans nor democrats! But,Americans!!

    February 14, 2011 at 4:02 pm | Report abuse |
    • 2FLI

      "The Bible states that God has given US the power to create wealth."

      Perhaps you should reword this as the Bible states no such thing whatsoever. The Bible DOES say the rich should help the poor, so if we insist on doing what the Bible says then taxes need to be increased for the wealthy. I'm just sayin.

      February 14, 2011 at 4:17 pm | Report abuse |
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