2014 budget


A Budget to Reject

Over at National Review Online I have a column on why the Republican Party should not accept the president’s 2014 budget plan.

The president has repeated over and over again the slogan that a budget plan needs to be “balanced,” by which he means the spending cuts must be matched with comparable tax hikes. His own budget fails this test miserably. The only deficit reduction in it comes from a net $1.1 trillion tax hike over ten years (on top of the $0.6 trillion tax hike in the fiscal-cliff deal and $1 trillion in Obamacare). There are zero net spending cuts in the budget. Zero. When the “doc fix” for Medicare physician fees and a smaller change in Pell Grant funding are removed, as they should be, from the administration’s current-law baseline and placed instead with the other policy choices the budget reflects, the budget results in a net $10 billion spending increase over the coming decade.

Read the rest of the piece here.

posted by James C. Capretta | 10:43 am
Tags: 2014 budget
File As: Politics, U.S.

The President's Budget Is No Move Toward the Center

Over at the US News Debate Club blog I have a post arguing that the administration’s 2014 budget proposal is not the compromise that the president and his supporters are trying to sell it as.

To sum it up, the president's 2014 budget would result in massive tax and debt increases over the next decade, with no serious entitlement reform. The ten-year tax hike is $1 trillion, on top of the $0.6 trillion enacted in January and $1 trillion in Obamacare. But even with massive new taxes, the debt would still rise to $19 trillion in 2023, up from $5.8 trillion at the end of 2008. That's not the basis for striking any kind of deal with the GOP.

Read the rest of the post (and don’t forget to up-vote it!) here.

posted by James C. Capretta | 12:40 pm
Tags: 2014 budget, entitlement reform
File As: Politics, U.S.