President Obama on Thursday will announce fewer budget cuts and for a lesser dollar amount than President George W. Bush did in his final budget - and is counting on being able to eliminate some programs that his predecessor repeatedly tried, but failed, to slash. Obama administration officials said they're convinced they'll have more luck eliminating programs such as Even Start, an early childhood education program that Mr. Bush put on the chopping block year after year but which both Democrats and Rep... (more)

[Jim Lindgren, April 22, 2009 at 12:31pm] TrackbacksHuge Differences Between Government Outlays and Revenues. At the Congressional Budget Office (via Mankiw) is this stunning chart: Total Revenues and Outlays in CBO's Baseline and Under the President's Budget (Percentage of GDP) click to enlarge While the main takeaway is the current peak in outlays and trough in revenues, one shouldn't ignore the strong pattern of Clinton-era fiscal responsibility. In the Tea Party protests, I sometimes saw Obam... (more)

What happens when the White House publicity points collide with hard fiscal facts? Which side will win, the spin or the facts? See this Washington Post headline: "Obama to Order $100 Million in Budget Cuts." Is this a joke headline? Isn't this "order" totally swamped by all of the spending Obama and the Democrats in Congress have approved? The deficit for March just set a monthly record of $192.3 billion, with a B. How is $100 million more than a rounding error, or a day of interest on the Obama stimulus... (more)

This is one of those inside-the-Beltway games. The White House draws up a budget. The Republicans slam the president for big spending and deficits - after nearly a decade of big Republican spending and deficits. (Including one Republican who was ready to go to work for the Obama administration.) The Democrats demand an alternative from the Republicans. Republicans offer one, albeit lacking much in the way of specifics, and the Democrats slam the Republicans. Even Peter Orszag, the White House... (more)

On Thursday, Republicans began to roll out their alternative to the president’s gargantuan $3.6 trillion budget. While they have yet to spell out exact figures or provide the comprehensive budget itself, the “Republican Road to Recovery” does preview their plan and goes some distance toward shooting down the Democrats’ spin that Republicans have “no ideas.” (more)

The Obama administration's budget proposals are "staggering," and may eventually involve the bankruptcy of the United States government, the administration's one-time Commerce secretary nominee said Sunday. "I think your listeners have to understand how staggering the numbers are," Sen. Judd Gregg (R-N.H.) told CNN in an appearance Sunday morning. "We're talking about deficits which are four percent to five percent of GDP, which is not sustainable under any form of government." (more)

And the revolt brews . . . Sen. Mel Martinez (R-Fla.) said Wednesday Republican opponents of the $410 billion omnibus spending bill are within "striking distance" of bringing down the massive measure. Derailing the spending bill would be a huge victory for Republicans, and they might accomplish the goal with the help of a few reform-minded Democrats. Opposition to the sprawling measure has been growing for a variety of reasons, including a proposed change of Cuba policy, the inclusion of thousa... (more)

To understand Barack Obama, you have to recognize that he has established a clear pattern of calculated misrepresentations to mislead and confuse the public as to what he is doing and what he believes. For example, he repeatedly says he is only interested in what works, not ideology. That is meant to mislead and distract you away from his left wing extremist ideology, which is really what governs his policies and actions. If you carefully examine his economic policies, you see he thoroughly avoids pr... (more)

WASHINGTON - President Barack Obama's proposed tax increases are being met with misgivings by both Republicans and Democrats in Congress as he sends his Treasury secretary to Capitol Hill to defend them. Lawmakers in both parties question Obama's call to reduce high-income earners' tax deductions for the interest on their house payments and for charitable contributions. Also drawing fire is his proposal to start taxing industries on their greenhouse gas pollution — a move sure to raise consumers' elec... (more)

And he said he would respect us in the morning . . . From the New York Times. White House officials said Sunday that President Obama would sign a $410 billion spending bill that includes thousands of pet projects, known as earmarks, despite campaign promises to put an end to the practice. In appearances on television talk shows, Mr. Obama’s budget director and chief of staff both played down the issue. “This is last year’s business,” Peter R. Orszag, the director of the Office of Management a... (more)