Obama Budget Busts Spending Caps, According to Senate GOP Analysis [feedly]

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Obama Budget Busts Spending Caps, According to Senate GOP Analysis
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Two months after President Obama signed the Ryan-Murray spending caps into law (P.L. 113-73), his fiscal year (FY) 2015 budget would burst through those statutory limits and spend an additional $791 billion, according to a Senate GOP analysis of the president’s budget proposal. Senate Budget Committee ranking member Jeff Sessions, R-Ala., said that it calls for spending $56 billion more than the Ryan-Murray limits. “The president’s budget then calls for another huge tax increase of well over $1 trillion and to increase spending by almost $1 trillion,” said Sessions in a recent statement.

According to Senate Budget Committee Republicans, the president’s plan projects mandatory spending growth of 78 percent and Medicare and Medicaid spending growth of 73 percent over 10 years. Means-tested welfare and poverty spending, which now total $750 billion and is the largest federal expense, “continues to soar without reform.”

Sessions said that President Obama’s budget, by his own numbers, would add more than $8 trillion in new debt, bringing the total from approximately $17 trillion to $25 trillion. “This national profligacy is already inflicting an excruciating toll,” he said. Sessions also charged that the budget assumes savings from the passage of the Senate immigration bill, believing the immigration bill will produce hundreds of billions in new tax receipts from payroll contributions from newly legalized workers. “These workers, upon retirement, will draw out every penny and more that they have paid into these programs,” said Sessions.

The recently released Republican analysis reports spending in 2015 would total $3.901 trillion under the president’s spending policies, an increase of nearly 8 percent ($279 billion) above current levels. This exceeds by $114 billion the Office of Management and Budget (OMB) baseline, which assumes compliance with the Budget Control Act (P.L. 112-25), as revised by the Ryan-Murray spending agreement.

Much of the new spending in 2015 would stem from the president’s proposed Opportunity, Growth, and Security Initiative, which would provide an additional $28 billion for nondefense and $28 billion for defense above the recently signed into law discretionary spending caps, according to the GOP analysis. The budget does not allocate the additional funds among programs but, rather, “provides a laundry list of items that the new spending could support,” according to Senate Republican Budget Committee members.

The analysis states that other noteworthy new spending in 2015 includes: $10 billion for education (principally student loan forgiveness); $8 billion for training the long-term unemployed, displaced workers and summer jobs for youth; $6 billion for immigration reform; $5 billion for Medicaid enhancements related to provider shortages; and approximately $25 billion to continue the Medicare “doc fix,” Emergency Unemployment Compensation and Postal Service policies the president would start in 2014.

By Jeff Carlson, CCH News Staff

 

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About parrottcpa

Parrott & Associates, Certified Public Accountants Specializing In Business & Individual Taxes, Accounting & Payroll Located in Cumming, Georgia http://parrottcpa.com/
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