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. Name*scott correll

    I knew obama wasn't serious about cutting the deficit, he dont have that much common sense.The House is gonna have to put a ring in his nose and pull him around until 2012,till we can get his ass out of there.

    February 14, 2011 at 12:32 pm | Report abuse |
    • Dennis

      He dont have have much common sense. Well at least he dont talk like some conservative jerk who doesn't have a clue who is pulling the strings.

      February 14, 2011 at 12:51 pm | Report abuse |
    • xpsiter

      Um, right, ring in the nose......"he dont have that much common sense"....apparently a proper education isn't common enough, with proof seen in your lame post.

      February 14, 2011 at 12:54 pm | Report abuse |
    • Mark

      The conservatives in the House are looking to trim $100 billion dollars. So next years budget will have a 1.2 trillion dollar deficit instead of 1.3. Big deal. And of course all of their cuts will come at the expense of the neediest amongst us. Big heroes they are!
      Until both parties get serious about the 'sacred cows' defense, social security and medicare/aid cutting discretionary spending isn't going to amount to much. There just isn't enough of it to make that much of a difference.

      February 14, 2011 at 1:15 pm | Report abuse |
    • mel

      "He don't have that much common sense." Really?
      Republicans will not agree with Democrats and Democrats will not agree with Republicans. It's just known that if a Democrat is president then all Republicans are against him and vice versa.

      February 14, 2011 at 1:35 pm | Report abuse |
  2. joe bob

    why? honestly lowering the budget for the decade by 1 trillion is not very impressive. We are at a 1.4 trillion deficit per year.

    February 14, 2011 at 12:33 pm | Report abuse |
    • Michaelk

      Cutting all the excess in one or even five years would crash economy. Reason is mandatory.

      February 14, 2011 at 12:37 pm | Report abuse |
    • John

      So we can raise spending by 3 trillion in a year, but we can't cut it or we all die (or at least the children and disabled will die).
      Little drops in the bucket add up. It is time – 15 million to upgrade the Regan Library last week? I am sure we needed that. I just love the enhancement of being able to take photos in the library and having them go directly to my email.

      February 14, 2011 at 12:54 pm | Report abuse |
    • Harry(NJ)

      John you need to understand how our government works, the Reagan Library gets "Fixed Up" sort of speak, then someone in that area has a job in that area. If you cut spending then a potential voter also loses a job. This is how our government works, you bring jobs to you district at the expense of someone else. You have Baeher district construct engines for the pentagon eventhough the pentagon does want or need them. Why? because it keeps people employed and employed folks vote.

      February 14, 2011 at 1:24 pm | Report abuse |
  3. snow ballz chance in ...

    The end is coming. It will be swift, brutal and spectacular with politicians of all colors running for the exits. Nothing short of an Egyptian style revolution in this country will stop this run away train known as "the demise of America."

    February 14, 2011 at 12:35 pm | Report abuse |
    • mercury

      Ahh...the defeatist argument. So tell me; what exactly will replace America, and how will it be better? Keep dreaming, idealist moron. A little bit of hard times and the defeatists think it's the end of the US. Guess again...the US isn't going anywhere for a long time.

      February 14, 2011 at 1:03 pm | Report abuse |
    • Jojohn@mercury

      You are the moron. 14 trillion in debt with no end in sight of both parties spending like mad. With the free flow of capital today, the US could easily be taken to task just like Greece.

      February 14, 2011 at 1:18 pm | Report abuse |
    • Harry(NJ)

      Yeah, I don't understand why folks don't see that both parties are big spenders. We have two wars that we are still spending billions on and yet no one wants to point that out. I guess it's okay to scream about unnecesserary government spending as long as it does not hurt you.

      February 14, 2011 at 1:27 pm | Report abuse |
    • Henry C.@mercury

      You don't have to be a genius to understand that the US isn't destined to be top dog forever. History has shown that superpowers fall time and again. Why would we be any different?

      February 14, 2011 at 1:28 pm | Report abuse |
    • mercury

      @Henry C. The US has been a superpower for about 60 years. You can't possibly tell me that the US is going to fall after only 60 years. That's just a delusional argument. Yes, we are fighting 2 wars, but take a close look at them. Like it or not, Iraq has been quite successful. We lost more people in the Mexican-American war, to put it into perspective. Afghanistan is a challenge, but conditions have improved recently. We are by no means licking our wounds in defeat. Not only that, we are still the economic benchmark for the world, and that's not going to change. The US GDP is still almost 3 times bigger than the next largest economy in the world. Sorry, your defeatist arguments do not add up. It's quite sad that you would argue for the downfall of your own country, instead of taking part in making it better.

      February 14, 2011 at 2:51 pm | Report abuse |
  4. DonMac2

    Will the liberals please stop complaining about "corporate tax cuts" and insisting on increasing taxes on businesses? For the purpose of education, absorb the fact that there is no such thing as "corporate taxes" – ALL taxes are individual taxes, and we are the individuals. When you raise corporate taxes, you suppress pay raises and new hires. Any remaining taxes are simply added to the cost of the goods produced – the corporation pays nothing in the end, and we all foot the bill. It is a scam, people! All corporate taxes do is drive work overseas.

    February 14, 2011 at 12:36 pm | Report abuse |
    • Ralf the Dog

      Not true, You are assuming a corporation looks at it's budget, decides it has some extra money hanging around, then decides to go on a spending spree and hire a bunch of people, just of the fun of it.

      A smart corporation only hires the number of people it needs. If you want us to hire more people, put more money in the hands of consumers. The consumers will spend more money, causing us to need more people.

      February 14, 2011 at 12:40 pm | Report abuse |
    • DonMac2

      You missed the point. Corporations do not pay taxes – the cost of taxes is just another business expense, and is added to the production costs. You and I wind up paying the added expense (corporate taxes), so there is no benefit to the public in raising business taxes. It is inflationary and just reduces your purchasing power. Talk about shooting yourself in the foot!

      February 14, 2011 at 12:47 pm | Report abuse |
    • Honeycutt

      This is absolutely false!! You are assuming corporations have a soul. That is, when they have more profits, they will hire more people and pay their staff more. This is pure fantasy! Corporations will continue to cut staff and salaries regardless of their profits. They continue to move operations overseas to China to save a few bucks. The men in the penthouse will get their cut even when they drive their companies into the ground.

      Look at the guys who ran Merrill Lynch, Enron, Lehman Brothers, etc. Their workers are tossed out on the street while they are sipping martinis in Bora Bora.

      February 14, 2011 at 12:54 pm | Report abuse |
    • DonMac2

      Ah! You are a true liberal. Read this slowly – corporations do not pay the taxes you impose on them. Those taxes are added to the cost of their goods, costs which are paid by you and me. So – when you "soak the corporations", you just soak yourself. Is this so difficult to understand. BTW – the US has one of the highest corporate tax rates on the planet. You are paying for that with inflated prices for everything you buy. That sure teaches 'em a lesson, huh?

      February 14, 2011 at 1:01 pm | Report abuse |
    • scriptfoo

      Corporate taxes compared to the GDP and as a percentage of overall tax income has been on the decline the past 10 years and is only a third of what it used to be compared to the '40's. Corporations blaming taxes as the inhibitor to job-creation or the driving factor to move jobs overseas? Hard to believe.

      February 14, 2011 at 1:04 pm | Report abuse |
    • al in memphis

      I think you missed the point. Corporations main goal is to distribute profits to those who are wealthy enough to own the corporation so they can continue to get a return on their investment. I don't have a problem with this free market idea, however the corporations benefit greatly from operating in this country. Why can't they share some cost in maintaining it instead of making as much as possible profits. I know they re-invest and that grows jobs, but corporations have spent that last decade creating those jobs in other countries strictly to maximize profits. Corporations only care about the market and revenue opportunity this country offers, if they could make everything overseas and ship it back here and pocket the profits - they would do it gladly.
      Oops, I forgot that's what happening the last decade which is why you don't have great job prospects now.

      February 14, 2011 at 1:11 pm | Report abuse |
  5. Starman2112

    USA: Its time for the USA to start taxing religion. Its ridiculous that we are in a time of needing to pay of our debts and religion can still be used widely by Americans as tax free shelters for their money. Church's in the USA are now run like corporations and the individuals running them use all their tax free power to bilk us out of probably billions and billions of potential real tax dollars. Tax religion and we'll probably pay of our debt in 10 years.

    February 14, 2011 at 12:36 pm | Report abuse |
  6. Name*big dog77

    He's bound and determined to give this country away! DONALD TRUMP in 2012!!

    February 14, 2011 at 12:37 pm | Report abuse |
  7. Mike

    You can open up your check book anytime and give the gov more money, I'm sure they'll take it, but when you start taxing in a tier system your asking for problems. a flat (fair) tax would in fact have the rich pay more because of no loop holes, but at he same time the people in the middle or whom ever wouldn't feel that any couch potato is getting a free ride

    February 14, 2011 at 12:38 pm | Report abuse |
  8. Wasteful administration

    Stop spending my money on other worthless countries gdi – stop spending money on these entrenched american politicians getting fat from my dollar as well. Give them TERM LIMITS and get them out back into general population afterwards so they can get a job like the rest of us and work for their retirement. Enough $25,000 toilet brushes already.
    Ditch the criminals in office!!!!!!!!

    February 14, 2011 at 12:38 pm | Report abuse |
  9. Pat

    Even though it wouldn't make a difference, I wish I could have my vote back. 2012 can't get here quick enough.

    February 14, 2011 at 12:40 pm | Report abuse |
  10. MMMMMM

    I's easy. Get the government out of paying for any medical assistance. All of it. If you can't afford it, or your insurance won't pay for it, you don't get! Medical costs will dramatically fall. We won't be spending 90% of a person's medical expenses in the last 6 months of their life.

    Social Security: Everyone making an income contributes with no cap; remove payments for disabilaity altogether; no pay for being disabled. No exceptions. Retirement starts at 70. No payments until then.

    Defense. Par this down to $250 billion. The DOD can do with less. We don't need staelth aircraft to fight terrorists.

    Foreign Aide; eliminate it.

    Taxes, everyone pay a flat tax of about 20%. No deductions of any kind.

    Problem solved.

    February 14, 2011 at 12:40 pm | Report abuse |
    • d/d

      So i guess you for kids dying of cancer. And i guess your legs work and none of your kids were born with a disablity

      February 14, 2011 at 12:54 pm | Report abuse |
    • Martin C

      Lets not forget the war on drugs that funding is a black hole too, it should go as well
      oh while we are cutting costs let eliminate those fedral regulatory commisions that end up keeping regulated industry in check like water departments and electric companies those only cap costs for consumers and provide saftey mesures.
      while we are at it we can just do away with government spending as a whole and eliminate taxing all together i mean who really needs government anyway no one is happy with the desisions that come from them so every one get a gun and defend yourself cause we really dont want to pay for it. WAKE UP DUDE !!!!

      this country is built on the fact we pay taxes without it there is no revenue that revenue is spent in the effort to keep you safe healthy and with the ability to live, take those away and you are living in a cave with all your coins to count.

      February 14, 2011 at 1:21 pm | Report abuse |
    • DEF

      Hmmm, yeah, no need for stealth aircraft to fight terror, but what about China? Russia? they both have generation 5 fighters in the works. The reason we were able to roll over the Iraqi Army in Desert Storm was because the level of technology we had was much higher than we "Needed" you want to cut costs in the defense budget? Start looking at the cost of contractors of all types. Start re-examining all of the "lowest bidders". Start using common sense.

      February 14, 2011 at 1:29 pm | Report abuse |
    • MMMMMM

      I feel sorry about the kids, but why does the government need to pay? Set up co-ops; save your own money for medical spending. I'm not saying let them die; but I am saying why is it we always EXPECT the government will come save our bacon?? We used to be a self-sufficient group of people. Now we rely on the government to do everthing; we don't want to save for our own retirement (we have Social Security), the government will cover us. I don't want to save $$ for when I'm ill; I'd rather go on that cruise! Well, the bill is coming due folks! The free ride is almost over!!!

      As to China/Russia etc; let them pay the big bucks for defense spending. I'm a 20 year Navy veteran and I don't know how many times I have heard people state "we need this or that system because the Russians have it!!" with actual terror in their eyes. Turns out in most cases it was a ploy to get the US to waste huge amounts of $$ to prop up some contractor.

      February 14, 2011 at 2:54 pm | Report abuse |
  11. Zues

    Stop spending.

    February 14, 2011 at 12:42 pm | Report abuse |
  12. pjjk

    Mericans, want their cake and eat it to. Its not hard to understand why your student math skills are pathetic compared to the rest of the world. You want everything for free, let somebody else pay for it. Guess what, there is no one else. Get your religious right to pray for money to drop from the sky cause thats the only miricle your going to get unless u raise taxes

    February 14, 2011 at 12:43 pm | Report abuse |
  13. Ian

    This going green crap is costing us alot of $$ too. It is not cost effective. Give it up already.

    February 14, 2011 at 12:43 pm | Report abuse |
    • Zues

      I agree. At least until we are out of the red.

      February 14, 2011 at 12:52 pm | Report abuse |
    • Cavermarkk

      "When the last tree is cut, the last river poisoned, and the last fish dead, we will discover that we cannot eat money.” –Cree Indian Proverb

      “So-called ‘global warming’ is just a secret ploy by wacko tree-huggers to make America energy independent, clean our air and water, improve the fuel efficiency of our vehicles, kick-start 21st century industries, and make our cities safer and more livable. Don’t let them get away with it!” –Chip Griller, founder of Grist.org

      "In nature there are neither rewards nor punishments—there are consequences."-Robert Green Ingersoll

      February 14, 2011 at 3:00 pm | Report abuse |
  14. jb

    how about if everyone in the congress and senate donated 6 months of their salary, including the president, we might make a dent in the budget problems. Taxing the working class isn't going to help because the working class has been hit so hard, it's difficult enough for some of them to even get by.

    February 14, 2011 at 12:44 pm | Report abuse |
    • Cavermarkk

      Interesing atricle – Will open your eyes to how much money is actually spent (8%) on things other than the debt, medicare, medicade and social security.

      http://money.cnn.com/2011/01/21/news/economy/spending_taxes_debt/index.htm?source=cnn_bin&hpt=Sbin

      February 14, 2011 at 3:04 pm | Report abuse |
  15. Jasper

    Well, I dont think anyone expected Boehner to say anything postive about the budget. Of course they would do a much better job... like during the Bush administration. They did a great job then cutting taxes and spending on a war on terror in a country which had no WMDs or bin laden for that matter.

    Boehner wouldnt say a positive thing about Obama if he got China to declare us debt free. Boehner's response to that would be; "He sold our souls to the communists!"

    February 14, 2011 at 12:46 pm | Report abuse |
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