Today at 1:30pm EDT, Anti-President Barack Obama will deliver a speech at George Washington University. He will lay out his revised 2012 Budget, 2.0, addressing spending cuts and tax increases. On the chopping block will be cuts in Medicare and Medicaid, as well as cuts in defense. Also on the chopping block will be America taxpayers, as Obama will propose higher taxes. Of course, he will offer that these tax increases are only for ′The Rich′, but really they will impact on all of us. His timing for this speech could not be worse as many in Congress are already having second thoughts about the last-minute budget deal for 2011 and battle lines are being drawn for the next fight, tackling the Debt Ceiling.

obama balanced budget speech

The top 1% of income earners are already paying 40% of all federal revenues. The top 10% pay 60% and the top 50% account for 97% of all money Uncle Sugar takes in. The problem with our budget, however, is not a revenue problem, it is a spending problem. Since taking office, Obama has expanded the federal government from being 20% of the GDP to 26%. His original 2012 budget delivered after his State of the Union address in January would increase it to 28%. Before January, 2009, all government, local, state and federal, made up 35% of the economy. Now it is 44% and still climbing as ObamaCare is phased in.

Historically, during the 20th Century, the federal government consisted of 18-20% of the nation’s GDP. Even when the upper tax rates were as much as 90%. This threshold of 20% is crucial, as we have seen time and time again that whenever government exceeds its scope, it still does not gain any further revenue. Instead, the higher tax rates just force businesses and the productive to fairer climes, like Singapore or Dubai. So Obama’s plan is doomed to failure from conception.

The only rational plan for balancing the budget and getting the National Debt under control is to reduce spending to 18% or less of GDP. In that way, the 20% threshold of taxing and revenue stream will be more than enough to cover our expenses and pay down the debt. If we could get it down to 15% and lower the tax rates to 18%, then America would have itself a nice, sustainable economic boom, creating plenty of jobs, real private sector jobs, not phony stimulus make-work jobs.

But this reality is too much for Anti-President Barack Obama to grasp, as he is a Socialist-Progressive at heart. His whole reason for being is to expand government which would cripple the nation. Obama’s speech today at 1;30pm EDT from George Washington University will do nothing to solve our fiscal problems. If anything it will only make them worse. Meanwhile, the clock is ticking on the next economic-political time-bomb, the Debt Ceiling. How much do you want to bet it will not be resolved in time or properly so?

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