Wasting Time With Alex

The gravy train is gonna cost us more than they told us..

In the age of “Hope and Change” deficits no longer matter it seems. This even as a Tax Policy Center released a
detailed 40 page report of the key tax proposals in President Obama’s 2011 budget, and if you look at their numbers they are projecting a whopping $4.9 trillion shortfall, which eclipses the $1.1 trillion claimed by the Obama people. Here is the killer quote:

The budget assumes a baseline in which the 2001-2003 tax cuts are permanent (including the estate tax at its 2009 level), the exemption in the alternative minimum tax (AMT) is permanently indexed for inflation from its 2009 level, and that temporary expansions of refundability of the child tax credit and of the earned income credit are permanent. Those provisions would reduce revenues by $3.8 trillion over the 2010-2020 period. TPC’s analysis measures the impact of the tax proposals not against the administration baseline but rather against a current law baseline that assumes the 2001-2003 tax cuts expire as scheduled in 2011 and that the AMT exemption maintains its permanent level. Against that baseline, the administration’s tax proposals would cause much greater revenue losses than official budget estimates show [$4.9 trillion v. $1.1 trillion].

For those that are numerically challenged, this means that the difference between all the goodies that the collectivists want to farm out reported in this analysis and the tax intake of Uncle Sam in this business hostile environment are going to leave us with an unbelievable additional $4.9 trillion in new debt. Of course, knowing the way collectivists operate, they will simply raise taxes - and likely also spending - and then be flabbergasted when we end up with something close to a $7 trillion gap.