Economy
Barack Obama Adds An Extra $776 Billion In Debt
- American taxpayers to spend $776 billion on extra interest payments by 2026.
- That $776 billion adds up to roughly $2,500 per American. Call it the Obama surcharge.
- Obama predicts this will decrease even though the federal debt — which is now at a record high of $20.9 trillion — will rise by another projected $9.3 trillion over the next decade.
- Mandatory spending is currently 64.63 percent of the budget.
Interest rates on President Barack Obama’s federal debts will double over the next decade, forcing American taxpayers to spend $776 billion on extra interest payments by 2026, according to a new report by the non-partisan Congressional Budget Office.
That $776 billion adds up to roughly $2,500 per American. Call it the Obama surcharge.
The CBO’s report whacks many incredible projections by the White House, such as its claim that if Congress would “Enact Immigration Reform,” that government would get “[tax] revenues by $386 billion over the coming decade.” CBO agrees that amnesty would expand GDP, but concluded that most of that supposed “growth” would consist of added welfare participation costing “$285 billion over the same period.”
But the biggest concern by the CBO is that Obama’s plan grossly understates likely interest payments.
The President’s budget predicts there will be a decrease of “$343 billion in net interest costs” over the next decade. Obama predicts this decrease even though the federal debt — which is now at record high of $20.9 trillion — will rise by another projected $9.3 trillion over the next decade,
Obama creates these magical savings by predicting that today’s historically low-interest rates on the 10-year Treasury notes will average 1.8 percent over the next decade.
But the latest Congressional Budget Office baseline projections suggest that with rising federal indebtedness, the 10-year Treasury note interest rate will climb to 4.1 percent.
That rise, according to the CBO, will push interest payments as a percentage of the federal budget from 6.03 percent in 2016 up to 13 percent by 2026.
The CBO warns that doubled interest payments must reduce spending on the two other federal budget categories.
Mandatory spending is currently 64.63 percent of the budget. It includes items outside the annual Congressional appropriations process that includes the “earned-benefit programs” of Social Security and Medicare, “safety net programs” like SNAP (formerly food stamps); and federal spending on transportation and a few other items.
Non-mandatory spending is discretionary spending, which is currently 29.34 percent of the budget. It includes federal spending authorized by the appropriations process each year, such as defense.
As part of his magical budget forecast, President Obama also projects that a future Congress could raise taxes or cut spending. That would mean less debt and thus lower interest payments. But the latest CBO scoring of President Obama’s budget suggests that even if Congress accepts each of his tax and spending proposals, interest in 2026 still would account for 12 percent of federal spending.
Obama projects Congress will pass tax increases of $543 billion by limiting certain individual income tax deductions for higher-income taxpayers; $386 billion by enacting immigration reform; $298 billion by imposing a minimum tax on certain foreign income; $273 billion by imposing a tax on oil; and $245 billion by increasing taxes on capital gains and dividends.
All that tax raising will come to pass, according to Obama, even though the United States already has the second-highest taxes in the developing world, just behind non-diverse Denmark.
Washington D.C. is notorious for under-projecting spending and over-projecting tax revenue. But with the CBO warning of an impending crisis over the amount of the budget used to pay interest, members of Congress are going to face much increased, post-Obama, pressure to slash spending and raise taxes.
Source: Breitbart
12 Comments
Obama called Bush unpatriotic because of the debt we occurred under his administration, but Obama has shown his disdain for America and future generations by his outrageous spending. The benefits of Congress and Federal Government Officials is out of control. In the real world of the hard working American they would be FIRED for incompetence.
THIS IS UNPATRIOTIC FROM THE PRESIDENT ALL THE WAY DOWN TO THE DO NOTHING CONGRESS!!!
Anything “O” does is wrong!
Barry Soetoro is a moslem
Barry Soetoro is an enemy to America
Barry Soetoro is a lifelong communist, raised in a communist household, born the “manchurian
candidate”, out of the statutory rape of his 16 year old mother when her communist father
gave up his daughter to be impregnated by his close friend, Frank Marshall Davis, known communist,
communist propaganda writer and pornographer.
Calling radical islam “isis or isil” validates their cause…
Radical islam is called daesh…
He says his plan concerning daesh is working…
His plan as with daesh is to kill all non-believers…
REMOVE HIM, ARREST HIM, CONVICT HIM THEN EXECUTE HIM
America, hit another presidential milestone…
Elect an American Veteran that has never held public office.
The Republic brought forth by the Founding Fathers barely lasted 50 years before the progressive/liberal/democrat/republican/conservative/governmental-distraction/manipulation mob took control of the economy.
It’s a Christian Constitutional Republic of Sovereign States, Functioning and Prospering in a Free Market Capitalist Society.
Never a democracy…
Never a democracy, ever.
The last Presidential candidate I voted for was Ross Perot, the next election cycle I had turned 35, legally eligible to serve as President, I voted for me, Buck Rogers. I have written my name in for President in every election since, I would appreciate your vote.
Buck Rogers For President
Semper Fi, Once And Always
Taxed Enough Already
Send No Money
It’s a write in
GOD Bless America
Understand this truth, islam… WAS BANNED FROM THE USA IN 1952, but Obama doesn’t want you to know that nor does he respect or uphold US law. The Immigration and Nationality Act passed June 27, 1952 revised the laws relating to immigration, naturalization, and nationality for the United States. That act, which became Public Law 414, established both the law and the intent of Congress regarding the immigration of Aliens to the US and remains in effect today. Among the many issues it covers, one in particular, found in Chapter 2 Section 212, is the prohibition of entry to the US if the Alien belongs to an organization seeking to overthrow the government of the United States by “force, violence, or other unconstitutional means.” This, by its very definition, rules out islamic immigration to the United States, but this law is being ignored by the White House. Any islamic immigration to the US would be prohibited under this law because the koran, sharia law and the hadith all require complete submission to islam, which is antithetical to the US government, the Constitution, and to the Republic. All moslems who attest that the koran is their life’s guiding principal subscribe to submission to islam and its form of government. Now the political correct crowd would say that islamists cannot be prohibited from entering the US because islam is a religion. Whether it is a religion is immaterial because the law states that Aliens who are affiliated with any “organization” that advocates the overthrow of our government are prohibited.”
he is the most selfish s.o.b. I wish he was never in the white house.
WHY, LOOK AT HIS LAST 7 YEARS IN OFFICE ,HE NEEDS TO BE INPEACHED AND REMOVED NOW.
Seriously?
Congress holds the purse strings.
Obama can execute the budget he cannot set it.
A patriot knows their Constitution and sees bullshit without smelling it.
I agree because anyone with brains knows this president hates the U S A and has got away with murder of our country. Why have our politicians let him get away with it?????Something is very wrong!!!!!!!!!
It appears that he is try to but into bankruptcy, they must think that money grows on trees and they have a bunch of money growing trees in Washington District of Criminals. Let bring more illegal and refuges and give them Obama care, More money a house food at Tax payers expense!!!
He will not stop until he has bankrupted this country
I wish those senators and congress men would put a plank in their backside. We need to clean out Washington and start over maybe we would get some men who have a backbone and stand up against Obama. I wish Obama would go back to Kenya and climb a tree he sure would feel at home.
I would like to know who is going to pay for it we the people thats not right i think the goverment treading on our children it wouldnt be right unless you start bringing back jobs to america and raising the minimum wage
The last I knew our National Debt has been going down sine Obama took over from the Republicans. Somebody is lying.