The President has announced that he wants to create an infrastructure bank through Congress and that unemployment benefits should be "enhanced" and extended for another year. In all, the plan would add over $100,000,000,000 in 2012 alone and over ten years would entirely consume the $1 trillion dollars of savings the "debt deal" supposedly cut last week.
When asked whether this plan would be deficit neutral, the White House didn't respond. When asked for comment, the Obama Administration refused to reply. Apparently, Mr. Obama planned to announce this abomination and then decided to hide.
The President stated in his speech, “If Congress fails to extend the payroll-tax cut and the unemployment-insurance benefits that I’ve called for, it could mean 1 million fewer jobs and half a percent less growth. This is something we can do immediately, something we can do as soon as Congress gets back.”
Understandibly, top-ranking Republicans are not impressed with the President's plan. “Over the next several months, there will be tremendous pressure on Congress to prove that S&P’s analysis of the inability of the political parties to bridge our differences is wrong,” House Majority Leader Eric Cantor wrote. “In short, there will be pressure to compromise on tax increases. We will be told that there is no other way forward. I respectfully disagree.”
|Addicted to spending|
Last week’s debt deal calls for lower projected discretionary spending of $917 billion over the next decade, but in terms of actual dollar-to-dollar cuts, it lowers spending just $7 billion in 2012, and only an additional $3 billion in 2013.
Many conservative Republicans voted against the deal, arguing those cuts didn’t go deep enough. Liberal Democrats, meanwhile, said it bled domestic priorities too much.
But that $7 billion in savings pales in comparison with the deficit hole that would be opened if Congress adopts all of Mr. Obama’s new proposals.