Obama's Budget Plan: Tax And Spend With A Vengeance

Fiscal Policy: When the president released his budget in February, he said it was full of new ideas for the 21st century. But now we know it's just good old tax-and-spend liberalism.

Obama went on to say "these proposals are practical, not partisan" and bragged how his budget would cut future deficits by $1.8 trillion "primarily from reforms in health programs, our tax code and immigration."

But a Congressional Budget Office review of the budget shows it's little more than a call for more spending, far higher taxes, ever-growing deficits and steadily expanding debt. Not exactly the "new era of responsibility" that Obama promised when he took office.

Every year, the CBO does an independent analysis of presidential budgets, using its own economic assumptions and calculations to provide an independent assessment of what is always a political document out of the White House. Sometimes, these differences can be minor. But in this case, they are significant.

First, the CBO found that Obama's budget would cut the deficit by just $1.2 trillion over the next decade. That's one-third less than Obama claimed.

Next, it found that all of this deficit-reduction comes from tax hikes. Actually, more than all of it. The plan calls for increasing taxes by $1.8 trillion over the next decade, but it also asks Congress to boost spending by $547 billion over current law.

And, despite the huge tax increases, Obama would still leave the country facing increasing deficits — CBO reckons they'll top $800 billion by 2025 — and continued growth in the national debt.

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By 2025, publicly held debt will equal 73.1% of the nation's economy and rising, the CBO calculates. In comparison, the debt-to-GDP ratio averaged around 44% between 1940 and 2009. And the budget "savings" Obama claims are dubious, at best.

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