As President Obama prepares to unveil his $3.8 trillion budget for fiscal year 2011, which begins Oct. 1, the White House is projecting the current fiscal year will end with a $1.6 trillion deficit, congressional sources confirmed to Fox News.
Next year’s budget will have a nearly $1.3 trillion debt, according to those sources, dropping to just over half that — $700 billion in fiscal year 2013 — before jumping back up to $1 trillion in 2020, the furthest out that budgeters will predict.
A $1.6 trillion deficit would represent more than 10 percent of the gross domestic product, but the White House says over the next 10 years, the average deficit will represent only 4.5 percent of GDP annually. Last year’s deficit was $1.42 trillion.
“We don’t expect this is going to be easy,” Fox Business Network reported White House Communications Director Dan Pfeiffer saying. Pfeiffer added that the White House proposed cuts last year but Congress funded programs anyway.
But keeping budget deficits where they are currently projected will happen only if tax cuts passed in 2001 and 2003 expire as scheduled at the end of this year. The White House calculates tax hikes would generate $1.2 trillion in revenue over 10 years.
At what point is Obama going to say, like all liberal politicians eventually say, that he will be “forced” to raise taxes on the middle class to pay for all this?
Or will he simply stick to the plan of lying and hope that the ignorant, or what is also known as “his base,” don’t notice that the price signals and various fines he is going to impose aren’t taxes.