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. crazy train?

    More like the gravy train. We have offshored jobs and that has helped people in other countries find jobs. But mostly it has helped multinationals profits.
    It is ok to create abundance to share with the world not to line the pockets of fat cats.

    February 14, 2011 at 11:16 am | Report abuse |
  2. Wallster

    Why are we cutting social programs while decent paying middle class jobs are going overseas? The answer to this problem is increasing the tax rates for the wealthiest Americians. It's crystal clear that the trickle down theory in a world economy doesn't work. Cap the income level at three million dollars at todays rates and anything above that gets taxed at 70%, employers would reinvest in their company and their workers. Instead we have corporations giving multimillion dollar bonuses to ceo's while cutting employees. We need to also stop giving banks money (especially if they're not loaning people money), allowing unfair trade agreements to continue, and promoting American manufacturing. Cutting programs that keep people warm in the winter isn't the right answer, getting Americans to work and spend will.

    February 14, 2011 at 11:17 am | Report abuse |
    • Dude in Colorado

      Too right Wallster! Today's corporate culture revolves around doing more with less, increasing stock value while decreasing overhead by any means necessary. CEOs, CFOs and COOs, not to mention the vast network of VPs and multiple levels of managers are choking the system while the people at the bottom are constantly required to produce more and more with less for less. I don't think big business really wants the job situation in this country to change because as long as there's an unemployment problem they can always demnd more from their people with the rationalization of "If you don't like it, too bad... There are how many people waiti ng for your job?" God Bless America...

      February 14, 2011 at 12:47 pm | Report abuse |
  3. the_dude

    Obama's war on the middle class is the only sucessful war America has going on right now.

    February 14, 2011 at 11:18 am | Report abuse |
    • chucky

      if you knew anything other than what Faux news spews, you'd know that Reagan started that war and Bush continued it,
      remember their motto....Corporations RULE, middle class DROOL!

      February 14, 2011 at 11:22 am | Report abuse |
    • D

      replace "Obama's" with "the Republicans'" and you're closer to the truth.

      February 14, 2011 at 11:57 am | Report abuse |
  4. Glen

    Both parties spend too much money. The fact is the budget needs to get balanced. We cannot spend more than we tax. You people who think spending should not be cut.....tell me what you are willing to do to help pay for it. And please don't tell me only "rich" people should pay more. High earners and businesses already pay a significant majority of the taxes. If the government program is needed an worthwhile, then everyone should have a part in paying for it.

    February 14, 2011 at 11:20 am | Report abuse |
    • D

      I'm willing to pay slightly higher taxes. As should everybody.

      February 14, 2011 at 11:58 am | Report abuse |
  5. AreWeThereYet

    I'd like to see FOREIGN spending get drastically cut. Enough of sending billions of dollars to countries that hate us. Once things are back to good here, we can start being everyone's favorite bankroll country again. But right now, its time to get our own house in order.

    February 14, 2011 at 11:20 am | Report abuse |
  6. chucky

    Anyone tired of the 'party of no' yet?? Honestly for all you that elected them, did you really think that ANYTHING would get done?

    February 14, 2011 at 11:23 am | Report abuse |
  7. blake

    This budget is proof positive that Obama just doesn't get it regarding our budget and the role of the federal government. He is proposing less than a 3% budget cut. With the kind of deficits he has taken on we need 20-25% across the board budget cuts (military, social security, Medicare, education, ...) and a major pull back in the role of the federal government in our lives.

    February 14, 2011 at 11:24 am | Report abuse |
    • Mom In MA

      Yes let's make all the middle class, the poor, the elderly and our children suffer so we can clean up a debt that exists because some megalomaniac decided to engage in two wars in 8yrs. Brilliant idea there blake. Here's another one.. how about instead of making everyone here suffer and go without the basics we get the hell out of Iran and Afghanistan and stop spending money trying to bribe, buddy, bully and control every other country in the world. Enough back door bribes and deals with politicians.. look at the money spent lobbying! and people like you go for throats of our elderly, our handicapped and our kids to fix the problem of rich old men and their greed? Shameful!!

      February 14, 2011 at 11:33 am | Report abuse |
  8. Russ

    What did you expect from Bonehead. Remember........he leads the party of NO. This budget could be exactly what the Republicans wanted, but since Obama sent it to them, they would rather cut off their noses to spite their faces than admit it was good. I'm sure, though, there were too many hits for their rich friends to agree to this proposal.

    February 14, 2011 at 11:25 am | Report abuse |
  9. Military Spending

    Defence budget is sacred. After all the trillions have been printed we can use the military to expunge the debt.

    February 14, 2011 at 11:25 am | Report abuse |
  10. RickyL

    We might as well face the fact, that until the middle class (what's left of it anyway) and the upper class decides to bite the bullet, BIG Time.....this problem can never be solved.

    One trillion saved over a decade is a joke – it doesn't even approach the problem; balancing the books on the backs of the poor is a sin; continuing to police the world will only bankrupt us quicker.

    February 14, 2011 at 11:25 am | Report abuse |
  11. Mom In MA

    This is getting so insane... they yell about spending then they yell about budget cuts. Let's face it short of calling down Jesus himself to wave a magic wand and make all the debt disappear these clowns would gripe and complain.... hell even if that happened they find something to complain about.. unless Jesus could present a long form birth certificate. They can do it better? I have yet to hear one thing that they would do differently. Oh yeah other than add more tax breaks for the rich and large corporations who are out there creating jobs for the heck of it and won't if they don't get tax cuts right? How the greedy continue to try and protect the greedy.

    February 14, 2011 at 11:25 am | Report abuse |
    • Military Spending

      We don't need jesus we have the biggest stick in the world. Just say no to paying debt.

      February 14, 2011 at 11:31 am | Report abuse |
    • Mom In MA

      I'm thinking that it's our habit of putting our big stick where it doesn't belong that got us here in the first place. LOL

      February 14, 2011 at 11:37 am | Report abuse |
  12. quick58

    I no we are indebt, but I've been indebt, 1 time,and me and my got out of that one,but now I'm in debt again this time my wife can'nt help me.I have to do it myself. More pay on my job would help.

    February 14, 2011 at 11:25 am | Report abuse |
  13. Charlie

    What's about the tax loop hole that allows hedge fund managers and private equity firms to claim their profit as capital gain. To the democrats that claim the party for the people, Nancy Pelosi 3 times shut down the amendment to fix that. Both Dem and Gop are driven by special interests. Their parties is above the people. When that tax loop hole is removed, I'll believe in the sincerity of the government.

    February 14, 2011 at 11:26 am | Report abuse |
  14. sthomps

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

    If Obama refuses to sign off on any extensions to these "continuing resolutions" so that Congress doesn't get a paycheck, we would see these people start co-operating instead of the constant bickering and grandstanding.

    This country is almost past the point of ruin financially. Quit bickering and start solving the problem Congress.

    February 14, 2011 at 11:27 am | Report abuse |
  15. internet

    subhindi
    Print money? Thats your solution? Google "inflation" doll, leave economics to adults

    February 14, 2011 at 11:30 am | Report abuse |
    • Subhendu Das

      We have a deficit. That means we have to pay the money back to some one. Who is that some one? Just print money and give it to them. It is our government, we have printed money, print more and give it to them.

      How does inflation matter. Change million dollars back to a cent, inflation is gone. The best way to destroy money is to print as much as you can. If you could print money, then you will not have poverty. The same will be true for the government.

      February 14, 2011 at 12:05 pm | Report abuse |
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