The Hill News

The numbers in President Obama’s proposed budget are staggering, but the lack of reform is even more staggering. The president is proposing a fourth consecutive year of deficits in excess of $1 trillion. In 2012, spending will exceed 24 percent of GDP, well above the historical average of 20 percent, and the deficit will reach 8.5 percent of GDP.

Gross federal government debt will increase from $15.4 trillion today to $25.9 trillion in 2022. In 2022, we will be spending almost as much on interest ($850 billion) as we will on Medicare ($908 billion).

However, the deficits won’t be the result of low taxes. In fact, the president is proposing a 10-year net tax increase of more than $1.5 trillion that will increase federal tax burdens to 20.1 percent of GDP in 2022, significantly above the historical average of 18 percent, and the budget will still be out of balance. 

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