President Obama's new budget proposal would raise taxes by $3 trillion over the decade — and still double the national debt.
He inherited unsustainable Social Security, Medicare, Medicaid and net interest costs, but instead of paring spending back, decided to pile on trillions of dollars in new health care, education and energy spending. Even the historic tax increases proposed by the president would cover only a fraction of these new costs. By 2020 — even assuming peace and prosperity — the budget deficit would still top $1 trillion. At that point, more than one-third of all income taxes would be needed just to pay the interest on this debt.
Yet it could be even worse.
Mr. Obama deserves credit for reversing President Bush's budget gimmicks of not budgeting for the Alternative Minimum Tax patch, the global war on terrorism and future unanticipated emergencies. But his budget contains numerous large gimmicks of his own: