BUDGET & TAX CHAPTER

PRESIDENT OBAMA IS THE UNDISPUTED DEBT KING

Politifact: Obama Is The Undisputed Debt King Of The Last Five Presidents. So by this measurement -- potentially a more important one -- Obama is the undisputed debt king of the last five presidents, rather than the guy who added a piddling amount to the debt, as Pelosis chart suggested. (Louis Jacobson, Nancy Pelosi Posts Questionable Chart On Debt Accumulation By Barack Obama,
Predecessors, Politifact, 5/19/11)

Obama Has Added To The Debt More Rapidly Than Any President Obama Is Responsible For The Most Rapid Increase In The Debt Under Any U.S. President. The latest posting by the Treasury Department shows the national debt has now increased $4 trillion on President Obamas watch. The debt was $10.626 trillion on the day Mr. Obama took office. The latest calculation from Treasury shows the debt has now hit $14.639 trillion. Its the most rapid increase in the debt under any U.S. president. (Mark Knoller,
National Debt Has Increased $4 Trillion Under Obama, CBS News, 8/22/11)

Obama Has Increased Each Americans Share Of The National Debt By $18,048 To A Total Of $52,467. (U.S. Treasury Department, Accessed 10/30/12; U.S. Census Bureau, Accessed 10/30/12)

Since Obama Took Office, The National Debt Has Increased By Over $5.5 Trillion, An Increase Of Over 52 Percent. (U.S. Treasury Department, Accessed 10/30/12) Congressional Budget Office: The Amount Of Federal Debt Held By The Public Has Skyrocketed In The Past Few Years The amount of federal debt held by the public has skyrocketed in the past few years, rising from 40 percent of GDP at the end of 2008 to reach an estimated 67 percent by the end of this year. (The Budget
And Economic Outlook: An Update, Congressional Budget Office, 8/24/11)

WaPo: [Obamas] Record On The Growth Of National Debt Is The Worst Of Recent Presidents. But the fact remains that under basic economic measures, not phony ones, his record on the growth of the national debt is the worst of recent presidents. (Glenn Kessler, A Bogus Chart On Obama And The Debt Gets A New Lease On Life, The Washington Posts
The Fact Checker, 9/29/11)

Under Obama, The Federal Government Has Added On Average $4,090,911,166 To The National Debt A Day. ( U.S. Treasury Department, Accessed 10/30/12) Under Obama, Net Interest On The Public Debt Has Averaged $645,474,944 A Day. (Monthly Budget Review, Congressional Budget Office, Accessed 10/9/12; U.S. Treasury Department, Accessed
10/9/12)

In 2008, Obama Called Adding $4 Trillion To The National Debt Unpatriotic In 2008, Obama Said Adding $4 Trillion To The National Debt Was Irresponsible. Its Unpatriotic. OBAMA: The problem is, is that the way Bush has done it over the last eight years is to take out a credit card from the Bank of China in the name of our children, driving up our national debt from $5 trillion for the first 42 presidents - #43 added $4 trillion by his lonesome, so that we now have over $9 trillion of debt that we are going to have to pay back -- $30,000 for every man, woman and child. Thats irresponsible. Its unpatriotic. (Sen.
Barack Obama, Remarks At A Campaign Event, Fargo, ND, 7/3/08)

VIDEO: Obama Says Adding $4 Trillion To Debt Is Unpatriotic 1

Obamas Debt Binge Shows No Sign Of Ending The National Debt Will Continue To Rise As Far As The Eye Can See. The federal budget sent to Congress last month by Mr. Obama, projects the National Debt will continue to rise as far as the eye can see. The budget shows the Debt hitting $16.3 trillion in 2012, $17.5 trillion in 2013 and $25.9 trillion in 2022. (Mark Knoller, National Debt Has Increased More Under
Obama Than Under Bush, CBS News, 3/19/12)

Obamas Budget Would Increase The Total Federal Debt To $25.4 Trillion By The End of 2022. (Mid-Session Review, Fiscal Year 2013, Office Of Management And Budget, 7/27/12) Obamas Budget Runs A Cumulative Deficit Of $6.4 Trillion From 2013 To 2022. (Mid-Session Review, Fiscal Year 2013, Office Of Management And Budget, 7/27/12)

Obama Acknowledged That If We Fail To Control Our Debt, It Could Lead To A Double-Dip Recession Obama Believed That A Failure To Control The Deficit Would Make It Harder For The Economy To Grow. Obama wants to reduce the deficit because hes concerned that over time, federal borrowing will make it harder for the U.S. economy to grow and create jobs, said the official, speaking on the condition of anonymity. (Hans Nichols, Obama Plans To Reduce
Budget Deficit To $533 Billion By 2013, Bloomberg, 2/21/09)

Obama Recognized That If We Failed To Control Our Debt It Could Lead To A Double-Dip Recession. OBAMA: It is important though to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession. (Fox News, Interview With Major Garrett, 11/18/09) VIDEO: Obama: Failure To Control Our Debt Could Cause Double-Dip Recession

But Obama Has Failed To Prevent Our Debt From Rising To Dangerous Levels CBO Director Douglas Elmendorf: Growing Debt Increases Risk Of Sudden Fiscal Crisis. Growing debt also would increase the probability of a sudden fiscal crisis, during which investors would lose confidence in the governments ability to manage its budget and the government would thereby lose its ability to borrow at affordable rates. (Douglas
Elmendorf, CBOs 2011 Long-Term Budget Outlook, Congressional Budget Office Directors Blog, 6/22/11)

The Total Federal Debt Is Now 103 Percent Of GDP. (Department Of The Treasury, Debt To The Penny
And Who Holds It, Treasury Direct, Accessed 10/30/12; Bureau Of Economic Analysis, Accessed 10/30/12)

Economists Carmen Reinhart And Kenneth Rogoff Found Debt In Excess Of 90 Percent Of GDP Can Cut GDP Growth Rates In Half. When gross external debt reaches 60 percent of GDP, annual growth declines by about two percent; for levels of external debt in excess of 90 percent of GDP, growth rates are roughly cut in half.
(Carmen M. Reinhart and Kenneth S. Rogoff, Growth In A Time Of Debt, American Economic Review, May 2010)

Economists At The Bank Of International Settlements Concluded That Debt Beyond As Much As 80 Percent Of GDP Could Thwart Economic Growth. Its authorsa trio of economists from the Bank for International Settlements demonstrate that when government debt reaches beyond a certain threshold it begins to sap growth from the economy. Government debt beyond a threshold 2

ranging from 80 to 100 percent of gross domestic product (GDP) begins to thwart growth. (John Carney, From Jackson Hole: A Defense Of The Debt Ceiling, CNBC, 8/29/11) The Governments Debt Is So Large That At This Point It Could Be Fueling The Recession The Government Is In A Debt Trap That Could Be Fueling The Recession. Our recession may be driven, at this point, by the balance sheet of the government. Repairing that balance sheet by lowering spending may be the only way out of the debt trap. Call it the New Paradox of Thrift: the government can stimulate growth only by refusing to borrow. We need thrift all the way down. (John Carney, From Jackson Hole: A Defense Of The Debt Ceiling, CNBC,
8/29/11)

Public-Sector Debt In The U.S. Grew From 58 Percent Of GDP In 2000 To 97 Percent In 2010. That Almost Certainly Puts Us Beyond The Threshold Where Our Debt Is Restraining Economic Growth. (John Carney, From Jackson Hole: A Defense Of The
Debt Ceiling, CNBC, 8/29/11)

CNBCs John Carney: This Badly Undermines The Keynesian Case For More Deficit Spending Since It Could Lead To Lower Growth. This has serious implications for economic theory. It badly undermines the Keynesian casemade by the like of Paul Krugmanfor having government spending and borrowing increase to ameliorate the downturn. It implies that more spendingat least when financed by debtwill lead to lower growth rather than higher growth. (John Carney,
From Jackson Hole: A Defense Of The Debt Ceiling, CNBC, 8/29/11)

Obama Received The Largest Debt Ceiling Increase In History, Despite Voting Against Raising The Debt Ceiling As A Senator FactCheck.org: Obamas Request To Raise The Debt Ceiling Is The Largest In History. Obama said raising the debt ceiling has been a common occurrence over the last 60 years. Thats true, but this request is the largest in history, even in inflation-adjusted dollars. (FactChecking Dueling Debt Speeches, FactCheck.org, 7/27/11) Obama Wanted An Increase Large Enough To Prevent Having To Face The Issue Again During His Reelection. OBAMA: The only bottom line that I have is that we have to extend this debt ceiling through the next election, into 2013. And the reason for it is weve now seen how difficult it is to get any kind of deal done. The economy is already weakened. And the notion that five or six or eight months from now well be in a better position to try to solve this problem makes no sense.
(President Obama, Press Conference, Washington, D.C., 7/22/11)

Biden Told Sen. McConnell That The Extension Of The Debt Ceiling Past The 2012 Election Was A Nonnegotiable Demand. Biden stated flatly that the extension had to last 18 months, to take them beyond the 2012 election. It was a nonnegotiable demand, he said. As McConnell himself had heard two weeks earlier, the president was not going to give on this even if it brought his presidency down.
(Bob Woodward, The Price Of Politics, 2012, p. 340)

The U.S. Will Hit The Debt Ceiling Between November 2012 And January 2013. Analysts from the Bipartisan Policy Center projected that the United States will hit its $16.4 trillion debt ceiling between late November 2012 and early January 2013 due to lower-than-expected corporate tax revenues and the recent extension of the payroll tax holiday. (Seung Min Kim, Debt Doomsday More Imminent, Politico, 2/24/12) 3

In 2006, Obama Opposed Raising The Debt Limit, Saying America Has A Debt And A

Failure Of Leadership. Americans Deserve Better. OBAMA: The fact that we are here today to debate raising Americas debt limit is a sign of leadership failure. Increasing Americas debt weakens us domestically and internationally. Leadership means that the buck stops here. Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt and a failure of leadership. Americans deserve better. I therefore intend to oppose the effort to increase Americas debt limit. (Sen. Barack Obama, Congressional Record, 3/16/06, p. 2237- 2238) Obama Said That Vote Was Politically Motivated. OBAMA: As President, you start realizing, You know what? We-- we cant play around with this stuff. This is the full faith in credit of the United States. And so that was just a example of a new Senator you know, making what is a political vote as opposed to doing what was important for the country. And Im the first one to acknowledge it. (ABC News World
News, 4/14/11)

Then-Sen. Obama Used His Vote To Make A Point About Getting Serious About Fiscal Discipline. Then-Sen. Obama used the vote to make a point about needing to get serious about fiscal discipline.His vote was not necessarily needed on that. (Jake Tapper, Gibbs: Senator Obama Only Voted Against Raising Debt Ceiling In 2006 Because He Knew It
Would Pass Anyway, ABCs Political Punch, 1/5/11)

OBAMA PROMISED TO CUT THE DEFICIT IN HALF BUT INSTEAD RACKED UP THREE RECORD DEFICITS
PROMISE: Obama Pledged To Cut The Deficit In Half By The End Of His First Term. OBAMA: And thats why today Im pledging to cut the deficit we inherited by half by the end of my first term in office. (President Barack Obama, Remarks At The Fiscal Responsibility Summit, Washington, D.C.,
2/23/09)

President Barack Obama Plans To Cut The U.S. Budget Deficit To $533 Billion By The End Of His First Term (Hans Nichols, Obama Plans To Reduce Budget Deficit To $533 Billion By
2013, Bloomberg, 2/21/09)

One White House Official Told Politico Well Cut It At Least In Half. Under White House projections, this years inherited budget deficit of $1.3 trillion will be cut to $533 billion by fiscal year 2013, the end of the first term. So well cut it at least in half, the official said. (Mike Allen, Obama Vows To Cut Huge Deficit In Half, Politico, 2/22/09) President Barack Obama Reaffirmed His Pledge To Halve The Deficit In 2011. OBAMA: And thats what weve done with this years budget. When I took office, I pledged to cut the deficit in half by the end of my first term. Our budget meets that pledge and puts us on a path to pay for what we spend by the middle of the decade.
(President Barack Obama, Press Conference, 2/15/11)

FAIL: Obama Will Fall Far Short Of His Goal To Halve The Deficit In Four Years. President Obamas proposed 2013 budget will forecast a $901 billion deficit for next year, falling far short of his goal to halve the deficit in four years. (Richard Wolf, Obama Budget To Miss Deficit Goal, USA Todays The Oval, 2/10/12) The Deficit Remains Very Large By Historical Standards. The fundamental story about the federal budget has not changed: Although the deficit is starting to 4

shrink, it remains very large by historical standards, it says. (Erik Wasson, CBO: Deficit Is 493 Billion Larger, The Hills On The Money, 3/13/12) Politifact Rated The Claim That Obama Hasnt Even Come Close To Halving The Deficit As He Promised As True. Obama indeed made the pledge on Feb. 23, 2009, following a Fiscal Responsibility Summit shortly after his inauguration. (Watch more of his remarks that day.) He said then that the nations $1.3 trillion deficit was the largest in the nations history. It was mostly unchanged through fiscal year 2011. In 2012? Its expected to be $1.17 trillion. So not cut in half. Thats according to the nonpartisan researchers at the Congressional Budget Office in a March 2012 report. (Katie Sanders, Obama
Promised To Cut The Deficit By Half By The End Of His First Term But He Hasnt Even Come Close, Politifact, 5/16/12)

Politifact: Obama Promised To Halve The Nations Debt, But He Hasnt Managed To Chip Away Much As The End Of His First Term Nears. (Katie Sanders,
Obama Promised To Cut The Deficit By Half By The End Of His First Term But He Hasnt Even Come Close, Politifact, 5/16/12)

Obama Has Run Up The Four Largest Deficits In U.S. History This Is The Fourth Straight Year That The Deficit Will Exceed One Trillion Dollars, All Under President Obama. (Erik Wasson, CBO Says 2012 Deficit Has Reached $1.17T, The Hill, 9/10/12) FY2009: The Federal Budget Deficit Was $1.413 Trillion, The Highest In U.S. History. (Monthly Budget Review: November 2011, Congressional Budget Office, 11/7/11) FY2010: The Federal Budget Deficit Was $1.294 Trillion, The Third Highest In U.S. History. (Monthly Budget Review: November 2011, Congressional Budget Office, 11/7/11) FY2011: The Federal Budget Deficit Was $1.299 Trillion, The Second Highest In U.S. History. (Monthly Budget Review: November 2011, Congressional Budget Office, 11/7/11) FY2012: The Federal Budget Deficit Was $1.1 Trillion, The Fourth Highest In U.S. History. (Monthly Budget Review: Fiscal Year 2012, Congressional Budget Office, 10/5/12)

Obamas FY2013 Budget Increases The Deficit More Than His FY2012 Budget And Will Have A More Negative Long-Run Effect. The effects of the 2013 budget differ from those of the preceding budget in four main ways. In particular, the proposals for 2013 would do the following: Increase deficits by a greater amount, largely because of a greater increase in spending compared with that in CBOs baseline. Those larger deficits would provide a bigger short-run boost to output but then have a more negative long-run effect.
(The Economic Impact Of The Presidents 2013 Budget, Congressional Budget Office, 4/20/12)

According To A CBO Report, Obamas Policies Will Result in $6.4 Trillion In Deficits In The Next Ten Years. The Congressional Budget Office said Friday that President Barack Obamas tax and spending policies will yield $6.4 trillion in deficits over the next decade, more than double the shortfall in CBOs own fiscal baseline even after taking credit for reduced war costs. (David Rogers, CBO: Exploding Debt Under Obama,
Politico, 3/16/12)

OBAMA IGNORED REPEATED WARNINGS TO CONTROL OUR DEFICIT AND AMERICAS CREDIT RATING WAS DOWNGRADED FOR THE FIRST TIME
Obama Was Repeatedly Warned By Ratings Agencies To Control Our Deficits Or Risk A Downgrade In 2009, Moodys Warned The U.S. Could Lose Its AAA Rating If The Deficit Is Not Controlled. Under the most pessimistic scenario put forward by Moodys, the U.S. would lose its top rating in 2013 if economic growth proves anemic, interest rates rise and the government fails to dent the deficit or recover most of its assistance to the financial sector.
(Joanna Slater, Moodys Puts U.S., U.K. on Chopping Block, The Wall Street Journal, 12/8/09)

In 2010, Moodys Again Warned That A Failure To Bring Down The Deficit May Result In The Loss Of Our Triple-A Rating. Moodys Investors Service warned on Wednesday that the triple-A rating of U.S. treasury bonds could be in peril unless the federal budget deficit is reduced or the economy grows more vigorously than expected. (Jake Tapper, Geithner:
U.S. Will Not Lose AAA Bond Rating, ABC News Political Punch, 2/7/10)

In 2011, Standard & Poors Warned The Obama Administration To Get A Grip On Its Finances Or Risk Losing The Nations Sterling Credit Rating. A key credit agency issued an unprecedented warning to the United States government Monday, urging Washington to get a grip on its finances or risk losing the nations sterling credit rating.
(Paul Wiseman, S&P Warning: Fix Deficit Or Risk Credit Downgrade, The Associated Press, 4/19/11)

S&P Warns: Fix The Deficit, Or Else. (Jacob Goldstein, S&P Warns: Fix The Deficit, Or Else, NPRs
Planet Money, 4/18/11)

Treasury Secretary Geithner Repeatedly Claimed That There Was No Chance The US Would Lose Its AAA Credit Rating Asked In February 2010 If The U.S. Was At Risk Of Losing Its AAA Rating, Timothy Geithner Said, Absolutely Not. Absolutely not. And that will never happen to this country. When people were most worried about the stability of the world, they still found safety in the Treasuries and the dollar, he continued. That is a very, very important sign of basic confidence in our capacity as a country to work together to fix these problems. (Jake
Tapper, Geithner: U.S. Will Not Lose AAA Bond Rating, ABC News Political Punch, 2/7/10)

In March 2010, Geithner Said Theres Not A Chance U.S. Will Lose Credit Rating. Treasury Secretary Tim Geithner said theres no possibility the United States will lose its AAA bond rating. Despite warnings from independent bond raters over the countrys unsustainable fiscal situation, Geithner told a House panel on Tuesday the bond rating is safe. Theres not a chance thats going to happen to our country Geithner said in response to a question from Rep. Hal Rogers (R-Ky.). A report by the bond rating agency Moodys on Monday warned that the U.S. and several other countries with debt issues risked downward pressure on their AAA rating. (Walter Alarkon, Sec. Geithner: Not A Chance U.S. Will Lose AAA Bond
Rating, The Hills On The Money, 3/16/10)

In April 2011, Treasury Secretary Geithner Insisted That The There Was No Risk Of The United States Losing Its AAA Credit Rating. FOXs PETER BARNES: Is there is a risk that the United States could lose its AAA credit rating? Yes or no? TIM GEITHNER: No risk of that. BARNES: No risk? GEITHNER: No risk. (Fox Business, 4/19/11) When Asked Again If The U.S. Would Keep Its AAA Rating Geithner Said Absolutely. BARNES: So Standard & Poors is wrong, the United States will keep its AAA credit rating? GEITHNER: You know -- absolutely. (Fox Business, 4/19/11) 6

VIDEO: Geithner Says No Risk That U.S. Would Lose AAA Rating The Downgrade Of America On Obamas Watch Is Part Of The Presidents Ignominious Legacy

Standard & Poors Lowered The U.S. Credit Rating For The First Time, An Ignominious Legacy For Obama. (George E. Condon Jr., What A Week: Afghan Deaths, S&P, And Debt Limit Debate
Challenge Obama, National Journal, 8/6/11)

The Downgrade, Hours After Markets Closed On Friday, Is A First For The United States Since It Was Granted An AAA Rating In 1917. (Paul Wiseman, US
Downgrade Raises Anxiety, If Not Interest Rates, The Associated Press, 8/6/11)

President Obama Is Now Firmly Part Of The Landscape That S&P Trashed. But as he prepares to head out of town on Aug. 15, the bad news keeps piling up: new fears of a double-dip recession, a jumpy stock market and then Standard & Poors downgrade on Friday of the nations triple-A credit rating for the first time in history. S&P blamed Washingtons dysfunctional political culture for its move. Knocking Washington gridlock is a favorite topic of Obamas as well, but he is now firmly part of the landscape that S&P trashed. (Carrie Budoff Brown and Glenn Thrush, Obamas Bus Trip Could Hit Speedbumps, Politico, 8/7/11) Obamas Reaction To The S&P Downgrade Did Nothing To Reassure Americans As He Used The Occasion To Call For Higher Taxes Again In His First Speech After The Downgrade, Obama Said Our Debt Was Still Highly Regarded; Despite His Comments, The Main Wall Street Share Index, The Dow Jones, Extended Its Losses, Falling 4%. In his first public reaction to Standard & Poors downgrading the US, President Obama said markets continued to regard US government debt as being the highest possible grade. Yet despite his comments, the main Wall Street share index, the Dow Jones, extended its losses, falling 4%. Prior to President Obamas speech, the Dow had only been 2.5% lower. (Markets Fall Despite Obama Speech, BBC, 8/8/11) The Dow Plunged Another 100 Points To Hover Around 500 After The Presidents Speech. President Obama spoke this afternoon, saying the United States knew well before the S&P downgrade that it had a debt problem. The U.S. will always be a triple-A country despite what rating agencies say, he said. He said the good news is the debt is a solvable problem and progress is being made. Investors dont seem to agree. The Dow plunged another 100 points to hover around 500 after the presidents speech. (Daivd Kerley, U.S. Stocks Continue Selloff: Dow Falls More Than 500 Points, ABC News,
8/8/11)

The New York Times: Obamas Efforts To Restore Confidence In America Did Nothing To Reassure The Most Important Shareholders: Ordinary Americans Living From One Paycheck To Another. President Obama tried on Monday to restore the plunging confidence of investors, insisting the United States remains a triple-A country whatever Standard & Poors might think. It didnt work with the stock markets, which sank again, and it did nothing to reassure the most important shareholders: ordinary Americans living from one paycheck to another, worried about their jobs or wondering how they will replace the one they lost. (Editorial, Past Time For A New Agenda, The New York Times, 8/8/11) Obama Had All Weekend To Prepare For His Speech Regarding The Downgrade And All He Can Do Is Promise To Raise Taxes. Obama had all weekend and the best he could come up with was a reiteration of his plea for a balanced approach to deficit control. 7

Thats right. We have a tumbling stock market, over 9 percent unemployment and a flight to gold (some investment advisers say it will be at $2,500 per ounce by years end). All he can do is promise to raise taxes. (Jennifer Rubin, Obamas Horrifyingly Bad Speech, The Washington Posts Right Turn,
8/8/11)

This Illuminated Obamas Predicament Devoid Of Ideas, Bitter About Political Opposition And Completely In Over His Head. (Jennifer Rubin, Obamas
Horrifyingly Bad Speech, The Washington Posts Right Turn, 8/8/11)

MSNBCs Chuck Todd: You Get The Sense, WH Knew They Had To Say Something Given The News Of The Weekend But He Didnt Have Much NEW To Say. (Chuck Todd,
Twitter Feed, 8/8/11)

Politicos Ben White: He Had One Good Line In There, AAA Country, And He Buried It Under A Pile Of Tired Old Partisan Garbage. (Ben White, Twitter Feed, 8/8/11) White: Holy Cow. Really? Hes Talking About Tax Hikes Again? (Ben White, Twitter
Feed, 8/8/11)

Due To The Failure Of President Obama To Lead, Ratings Agencies Are Issuing New Warnings Fitch Ratings Cuts The US Outlook To Negative And Warns Our Projected Debt Levels Are Not Consistent With AAA Rating. Fitchs revised fiscal projections envisage federal debt held by the public exceeding 90% of national income (GDP) and debt interest consuming more than 20% of tax revenues by the end of the decade, and including the debt of state and local governments - gross general government debt will reach 110% of GDP over the same period. In Fitchs opinion, such a level of government indebtedness would no longer be consistent with the U.S. retaining its AAA status despite its underlying strengths. Such high levels of indebtedness would limit the scope for counter-cyclical fiscal policies and the U.S. governments ability to respond to future economic and financial crises. (Press
Release, Fitch Affirms United States At AAA; Outlook Revised To Negative, Fitch Ratings, 11/28/11)

Moodys Warned That It Would Downgrade The U.S. Governments Debt If No Debt Solution Is Found By The End Of The Year. Congressional leaders dug in their heels on Tuesday against any quick deal to resolve a looming fiscal disaster before the election, even as a major ratings agency warned that it would downgrade the governments debt if no solution was found by years end. (Jonathan Weisman, Moodys Warns That U.S. May Face Debt Downgrade, The New
York Times, 9/11/12)

The Moodys Warning Comes A Year After Its Rival, Standard & Poors, Downgraded The United States Credit Worthiness After The Protracted Stalemate Over Raising The Nations Statutory Borrowing Limit. (Jonathan Weisman,
Moodys Warns That U.S. May Face Debt Downgrade, The New York Times, 9/11/12)

Moodys Expects To Affirm The U.S. Rating Only If Negotiations Lead To Specific Policies That Produce A Stabilization And Then Downward Trend In The Ratio Of Federal Debt To G.D.P. If those negotiations lead to specific policies that produce a stabilization and then downward trend in the ratio of federal debt to G.D.P. over the medium term, the rating will likely be affirmed and the outlook returned to stable, Moodys said in a statement. If those negotiations fail to produce such policies, however, Moodys would expect to lower the rating. (Jonathan Weisman, Moodys Warns That U.S. May Face Debt Downgrade, The New
York Times, 9/11/12)

If Those Negotiations Fail To Produce Such Policies, However, Moodys Would Expect To Lower The Rating. (Jonathan Weisman, Moodys Warns That U.S. May Face Debt
Downgrade, The New York Times, 9/11/12)

The Moodys Warning Is Yet Another Reminder That Stalled Negotiations Could Lead To Much Of The Tumult That Occurred In The Summer Of 2011 And That Resulted In Historic Market Volatility. But the Moodys warning is yet another reminder that stalled negotiations could lead to much of the tumult that occurred in the summer of 2011. Back then, S&P downgraded the U.S. credit rating after the debt-ceiling debacle, which led to some historic market volatility. (Steven
Russolillo, Moodys Warns On U.S. Debt Rating Ahead Of Fiscal Cliff, The Wall Street Journal, 9/11/12)

OBAMAS CLAIM THAT HIS PLAN CUTS THE DEFICIT BY $4 TRILLION IS SIMPLY NOT ACCURATE AND INDEPENDENT ANALYSTS AGREE
President Obama Claims That Independent Analysis Showed His Deficit Plan Cuts $4 Trillion. OBAMA: Now, independent analysis says that my plan for reducing our deficits would lower them by $4 trillion. Thats with a T -- $4 trillion. And Ive worked with Republicans in Congress already to cut a trillion dollars in spending, and Im willing to do more. (President Barack Obama, Remarks By The President At A Campaign Event, Melbourne, FL, 9/9/12) Obama Rolled Out The Bogus Claim In His Acceptance Speech At The Democrat National Convention: Independent Analysis Shows That My Plan Would Cut Our Deficits By $4 Trillion. (President Barack Obama, Remarks At The Democratic National Convention,
Charlotte, NC, 9/6/12)

The Washington Posts Glenn Kessler: The Repeated Claim That Obamas Budget Reduces The Deficit By $4 Trillion Is Simply Not Accurate. Virtually No Serious Budget Analyst Agreed With This Accounting. (Glenn Kessler, Fact Checking
Bill Clintons Speech And Other Democrats At The Convention In Charlotte, The Washington Post, 9/6/12)

The Co-Chairs Of Obamas Fiscal Commission Say Obamas Plan Falls Short Of $4 Trillion Co-Chairs Of Obamas Fiscal Commission Erskine Bowles And Alan Simpson On Obamas $4 Trillion Target: Unfortunately, His Proposal Falls Short Of This Goal We are encouraged that President Obama has embraced the goal of stabilizing the debt and the target of achieving at least $4 trillion in deficit reduction. Unfortunately, his proposal falls short of this goal by counting war savings that were already planned; and while it does (barely) stabilize the debt, it does so at a dangerously high level and with no margin for error. We are disappointed, too, that the president did not address the longterm solvency of Social Security. (Alan Simpson And Erskine Bowles, Op-Ed, Go Big, Be Bold, Be Smart, The
Washington Post, 10/2/11)

If You Remove The Gimmicks From Obamas Plan Somewhere Between $1.5$2 Trillion Worth Of Deficit Reduction Evaporates. Its also not really designed to particularly reduce the budget deficit--as Lori Montgomerys piece in the Washington Post makes clear, most of the deficit reduction comes from gimmicky changes in the baseline: assuming that war spending will continue at last years high levels, and assuming that the Bush tax cuts for the affluent would have been extended indefinitely. If you take away those two assumptions, somewhere between 9

$1.5-$2 trillion worth of deficit reduction evaporates. (Megan McArdle, Obamas Deficit
Reduction: A Campaign Document, Not A Policy Plan, The Atlantic, 9/20/11)

Obamas New $4 Trillion Target Over 10 Years Resets The Goalposts With Some Fancy Budget Footwork. Obamas new $4 trillion target over 10 years resets the goalposts with some fancy budget footwork. For one thing, it includes $1 trillion in cuts already signed into law. And it assumes that Congress will pass the administrations plan to raise the capital gains tax, boost taxes on households earning over $250,000 a year and impose a minimum 30 percent tax on incomes above $1 million. It also assumes a reduction in the amount of interest the government must pay on its debt. (Calvin Woodward and Tom Raum, FACT CHECK: Obama And The
Phantom Peace Dividend, The Associated Press, 9/7/12)

The Economist: Much Of His Purported Spending Reduction Is Accounting Legerdemain. Much of his purported spending reduction is accounting legerdemain: he claims to save more than $800 billion from drawing down operations in Iraq and Afghanistan, but most of that was never going to be spent anyway. His cuts to Medicare and Medicaid consist almost entirely of squeezing health-care providers; benefits and beneficiaries are spared. (Barack Obamas Budget: The
Phony War, The Economist, 2/13/12)

In Effect, Most Of Obamas Claimed Deficit Reduction Comes From His Proposed Tax Increases. There are a number of other games being played, so fake money is being used to pay for real spending projects. In effect, most of Obamas claimed deficit reduction comes from his proposed tax increases. (Glenn
Kessler, Fact Checking Bill Clintons Speech And Other Democrats At The Convention In Charlotte, The Washington Post's The Fact Checker, 9/6/12)

Independent Analysts Have Panned Obamas Deficit Plan Independent Budget Experts Say Obamas Debt Plan Falls Short Of Its Claimed $4 Trillion In Savings. President Obama projects that his new plan for reducing the federal debt will save more than $3 trillion over the next decade by raising taxes on the wealthy and slashing spending on a host of government programs, from farm subsidies to federal worker pensions. But independent budget experts said the blueprint that Obama unveiled Monday which White House officials say would save more than $4 trillion when added to earlier budget deals this year appears to fall short of his target. (Lori Montgomery And Jia Lynn
Yang, Budget Analysts Say Obama Deficit Plan Is Likely To Miss Its Targets, The Washington Post, 9/19/11)

FactCheck.org: Obama Exaggerated ... Actually, One Independent Analysis Criticized A Central Part Of The Presidents Plan As A Gimmick. Obama exaggerated when he claimed independent experts say his deficit-reduction plan would reduce the federal deficit by $4 trillion over 10 years. Actually, one independent analysis criticized a central part of the presidents plan as a gimmick.
(FactChecking Obama And Biden, FactCheck.org , 9/7/12)

Maya MacGuiness, President Of The Bipartisan Committee For A Responsible Federal Budget Said That Obamas Plan Doesnt Produce Any More In Realistic Savings Than The Plan They Offered In April [2011]. The latest Obama plan doesnt produce any more in realistic savings than the plan they offered in April Theyve filled in details, repackaged it and replaced one gimmick with another. They dont even stabilize the debt. This is just not enough. (Lori

Montgomery And Jia Lynn Yang, Budget Analysts Say Obama Deficit Plan Is Likely To Miss Its Targets, The Washington Post, 9/19/11)

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Robert Bixby, Executive Director Of The Bipartisan Concord Coalition: Almost $2 Trillion Of The $3 Trillion [Savings] Total Is Obtained By Choosing The Most Convenient Baseline Assumption Almost $2 trillion of the $3 trillion [savings] total is obtained by choosing the most convenient baseline assumption, said Robert Bixby, executive director of the bipartisan Concord Coalition. There are, of course, some legitimate proposals here, but not the kind of structural changes that are needed in entitlement programs and tax expenditures to put the budget on a sustainable path. (Lori Montgomery And Jia Lynn Yang, Budget Analysts Say Obama Deficit Plan Is Likely To
Miss Its Targets, The Washington Post, 9/19/11)

A Large Part Of Obamas Cuts Come From A Peace Dividend From Money That Was Never Going To Be Spent Obama Says He Would Use The Money Were No Longer Spending On War To Pay Down Our Debt. OBAMA: Ill use the money were no longer spending on war to pay down our debt and put more people back to work rebuilding roads and bridges, schools and runways. After two wars that have cost us thousands of lives and over a trillion dollars, its time to do some nation-building right here at home. (President Barack Obama , Remarks At The
Democratic National Convention, Charlotte, N.C., 9/6/12)

The Idea Of Taking War Savings To Pay For Other Programs Is A Budgetary Sleight Of Hand And Is Just As Misleading Now As It Was In His State Of The Union Speech Last January. The idea of taking war savings to pay for other programs is budgetary sleight of hand, given that the wars were paid for with increased debt. Obama can essentially pay down our debt, as he said, by borrowing less now that war is ending. But he still must borrow to do the extra nation-building he envisions. (Calvin Woodward and Tom Raum,
FACT CHECK: Obama And The Phantom Peace Dividend, The Associated Press, 9/7/12)

Obama Used A Major Budget Gimmick By Which The Administration Is Able To Claim Credit For Saving Money It Never Intended To Spend. In other words, by projecting war spending far in the future, the administration is able to claim credit for saving money it never intended to spend. (Imagine taking credit for saving money on buying a new car every year, even though you intended to keep your car for ten years.) Rather than good arithmetic, independent budget analysts called the maneuver a major budget gimmick. (Glenn Kessler, Fact Checking Bill
Clintons Speech And Other Democrats At The Convention In Charlotte, The Washington Post's The Fact Checker, 9/6/12)

Obama Laid Claim To A Peace Dividend That Doesnt Exist. President Barack Obama laid claim to a peace dividend that doesnt exist when he told the nation he wants to use money saved by ending wars to build highways, schools and bridges.
(Calvin Woodward and Tom Raum, FACT CHECK: Obama And The Phantom Peace Dividend, The Associated Press, 9/7/12)

President Of The Committee For A Responsible Federal Budget, Maya MacGuineas: Drawing Down Spending On Wars That Were Already Set To Wind Down And That Were Deficit Financed In The First Place Should Not Be Considered Savings. At the same time, budget experts are not offering high-fives to the administration for claiming $848 billion in war savings from the winding down of the wars in Iraq and Afghanistan. Its a move they consider to be pure hokum. Drawing down spending on wars that were already set to wind down and that were deficit financed in the first place should not be considered savings. When you finish college, you dont suddenly have thousands of dollars a year to spend elsewhere -- in fact, you have to find a way to pay back your loans, MacGuineas noted. (Jeanne Sahadi, Obama Budget Fails To Tackle Entitlements, CNN Money, 2/14/12) 11

Obamas Plan Fails To Address The Long-Term Entitlement Crisis And Is Unlikely To Restore Our Credit Rating Obamas Plan Barely Touches Entitlement Reform Which Standard And Poors Said Was Key To Long-Term Fiscal Sustainability. An aging population will strain public finances further in coming years, consuming more healthcare and pension benefits offered by the federal government. In its downgrade, S&P said funding those future outlays was key to long-term fiscal sustainability. But less than a tenth of the savings in Obamas plan to cut budget deficits by $3.6 trillion would come from health spending. Reforms to the Social Security pension program were left out altogether. (Jason Lange, Analysis: Obama Deficit Plan
Unlikely To Impress Ratings Firms, Reuters, 9/20/11)

Obamas Reliance On War Savings Over Entitlement Reforms Will Not Impress Wall Street Credit Rating Agencies. President Barack Obamas plan to tame U.S. budget deficits probably relies too much on ending wars and too little on tackling health care spending to impress Wall Street credit rating agencies. (Jason
Lange, Analysis: Obama Deficit Plan Unlikely To Impress Ratings Firms, Reuters, 9/20/11)

Former Clinton Budget Director Alice Rivlin And Former Senator Pete Domenici: In Ten Years, Entitlement Costs Spiral Out Of Control And Revenues Are Inadequate To Deal With A Wave Of Retiring Baby Boomers. While his budget stabilizes debt over the next decade, the real problem arrives thereafter, as entitlement costs spiral out of control and revenues are inadequate to deal with a wave of retiring baby boomers, former White House budget office director Alice Rivlin and former Senate Budget chairman Pete Domenici said in a statement. (Jeanne Sahadi, Obama Budget Fails To Tackle Entitlements, CNN Money, 2/14/12) Former U.S. Comptroller David Walker: In The Year 2022 More Than 78 Percent Of Total Outlays (Spending) Will Be On Autopilot - Which Is Both Irresponsible And Unsustainable. Former Comptroller General David Walker, appointed by President Bill Clinton as the nations chief auditor, sharply criticized Obamas budget. The proposed budget would greatly increase the portion of government spending that is on autopilot. While the presidents budget cuts discretionary spending programs by 1 percent over a 10-year period, mandatory spending programs and interest on debt grow by more than 96 percent over the same decade, Walker said. The result is that in the year 2022 more than 78 percent of total outlays (spending) will be on autopilot - which is both irresponsible and unsustainable. (Kevin Hall, Obamas Budget Would Shrink Annual Deficits, But National Debt Still Explodes,
McClatchy Newspapers, 2/13/12)

OBAMA HAS REPEATEDLY FAILED TO LEAD ON CONTROLLING GOVERNMENT SPENDING

The Washington Posts Fact Checker: Obamas Spending Has Hit Highs Not Seen Since The End Of World War II. In the post-war era, federal spending as a percentage of the U.S. economy has hovered around 20 percent, give or take a couple of percentage points. Under Obama, it has hit highs not seen since the end of World War II completely the opposite of the point asserted by Carney. Part of this, of course, is a consequence of the recession, but it is also the result of a sustained higher level of spending. (Glenn Kessler, The Facts
About The Growth Of Spending Under Obama, The Washington Post's The Fact Checker, 5/25/12)

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The Washington Posts Fact Checker: Every Year In Office, Obama Has Wanted To Spend More Money Than Congress Would Allow. So in every case, the president wanted to spend more money than he ended up getting. Nutting suggests that federal spending flattened under Obama, but another way to look at it is that it flattened at a much higher, post-emergency level thanks in part to the efforts of lawmakers, not Obama. (Glenn Kessler, The Facts About The Growth Of Spending Under Obama, The
Washington Post's The Fact Checker, 5/25/12)

Obama Punted The Stimulus To Congress And Got A Bill Full Of Wasteful Spending And Boondoggles WHAT WE WERE TOLD: Obama Said That The Stimulus Would Be Careful With The Money [Taxpayers] Work So Hard To Earn. OBAMA: With a recovery package of this size comes a responsibility to assure every taxpayer that we are being careful with the money they work so hard to earn. (President Barack Obama, Remarks On Signing The American Recovery And
Reinvestment Act Of 2009, Denver, CO, 2/17/09)

WHAT HAPPENED: Obama Chose To Let Democrats Write The Stimulus And They Did What Comes Naturally. Mr. Obama chose to let House Democrats write the bill, and they did what comes naturally: They cleaned out their intellectual cupboards and wrote a bill that is 90% social policy, and 10% economic policy. (Editorial, The Stimulus Tragedy, The Wall Street
Journal, 2/7/09)

Obama Bought The Advice Of Economists Who Said Any Spending, Even The Worst Kind Of Boondoggle Was Stimulative. For the Obama transition teams and their allies on the Hill, three questions loomed large in designing the package. The first was whether the proposed spending was economically stimulative: Did it save or create jobs, and thereby put money in peoples pockets? It turned out that economists believed almost any spending met this criterion. In a recession even the worst kind of boondoggle is stimulative, a fact that critics had a hard time comprehending. (Jonathan Alter, The Promise, 2010, p84) In A Rush To Put Together A Stimulus Package The White House Sacrificed Impact, Creativity And Competence. With precious little time for innovative policymaking, it became a trade-off of speed over impact, speed over creativity, and, no doubt, speed over competence. Obama believed there was a steep cost to delay; if talks on the stimulus dragged into the spring or summer the recession would get much worse. (Jonathan Alter, The
Promise, 2010, p84)

Obama Admitted That The Enormous Sums Of Money In The Stimulus Had Fallen Short. Yet he also admitted that the enormous sums of money had fallen short. If were honest, part of the controversy also is that despite the extraordinary work that has been done through the Recovery Act, millions of Americans are still without jobs. (Richard Wolffe, Revival: The Struggle For Survival Inside The Obama White House, 2010, p. 155)

CBO: The Debt Caused By The Stimulus Will Drag On Economic Growth After 2016. In contrast to its positive near-term macroeconomic effects, ARRA will reduce output slightly in the long run, CBO estimatesby between zero and 0.2 percent after 2016. ARRAs long-run impact on the economy stems primarily from the resulting increase in government debt. To the extent that people hold their wealth in government securities rather than in a form that can be used to finance private investment, the increased debt tends to reduce the stock of productive private capital. In the long run, each dollar of additional debt crowds out about a third of a dollars worth of private domestic capital, 13

CBO estimates. (Estimated Impact Of The American Recovery And Reinvestment Act On Employment And Economic Output
From July 2011 Through September 2011, Congressional Budget Office, November 2011)

Richmond Times Dispatch: In The Future, Some Jobs That Would Have Been Created Otherwise Will Not Be. Of Course, Those Losses May Be Offset By All The Current Man-Hours Devoted To Stimulus Cheerleading. Finally, the CBO concedes that in the long run, the stimulus will be harmful because of the resulting increase in government debt. In the future, some jobs that would have been created otherwise will not be. Of course, those losses may be offset by all the current manhours devoted to stimulus cheerleading. It might not show up in tables from the Bureau of Labor Statistics, but the pro-stimulus snow job may be the biggest ARRArelated job of all. (Editorial, Stimulus: Correction, Richmond Times Dispatch, 11/29/11)

Obama Promised To Curb Earmarks But Just Two Months Into Office He Signed A Bill With Over 8,500 Earmarks PROMISE: Candidate Obama Pledged To Return Earmarks To 1994 Levels. Barack Obama is committed to returning earmarks to less than $7.8 billion a year, the level they were at before 1994 (The Change We Need In Washington, Obama For America, 2008) OBAMA: Ive Pledged To Slash Earmarks By More Than Half When I Am President. OBAMA: The truth is, our earmark system in Washington is fraught with abuse. It badly needs reform - which is why I didnt request a single earmark last year, why Ive released all my previous requests for the public to see, and why Ive pledged to slash earmarks by more than half when I am President. (Sen. Barack
Obama, Remarks, Green Bay, WI, 9/22/08)

FAIL: After Two Months In Office, Obama Signed A $410 Billion Omnibus Spending Bill In March 2009 Containing Over 8,500 Earmarks Worth $7.7 Billion. Obama signed a $410 billion spending bill Wednesday ... that includes more than 8,500 pet projects worth $7.7 billion. (Jonathan Weisman and Greg Hitt, Obama Outlines Plan To Curb
Earmarks, The Wall Street Journal, 3/12/09)

Fearing A Fight With Congressional Democrats, Obama Caved And Signed An Omnibus Full Of The Kind Of Crap That He Felt He Shouldnt Be Signing ... It was exactly full of the kind of crap that he felt he shouldnt be signing at this time of economic distress, said one senior West Wing official. It was a piece of legislation laden with pork. He signed it because the congressional wing of the White House convinced him that in order to achieve health care and his other many large agenda goals, he couldnt pick a fight with the Democratic leadership on earmarks that early in his presidency. (Richard Wolffe, Revival: The Struggle For Survival Inside The Obama White House, 2010, p. 184)

PROMISE AGAIN: After Signing The Omnibus, Obama Said This Piece Of Legislation Must Mark An End To The Old Way Of Doing Business, And The Beginning Of A New Era Of Responsibility And Accountability The future demands that we operate in a different way than we have in the past. So let there be no doubt: This piece of legislation must mark an end to the old way of doing business, and the beginning of a new era of responsibility and accountability that the American people have every right to expect and demand. (President Barack Obama, Remarks By The President On Earmark Reform, Washington, D.C., 3/11/09) FAIL AGAIN: Politifact: Earmarks Continued Unabated So Our Rating Remains Promise Broken. We conclude that the presidents inability to curb earmarking, unsurprising
as it may be, earns him a Promise Broken. (Louis Jacobson, Earmarks Continue Unabated, Politifact, 2/19/10)

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In FY2010, Appropriations Bills Contained Over 9,000 Earmarks Worth Almost $16 Billion. For that fiscal year, the group says, appropriations bills contained 9,499 congressional earmarks worth $15.9 billion. (Louis Jacobson, Earmarks
Continue Unabated, Politifact, 2/19/10)

Obama Revived A Deeply Flawed PAYGO Rule In An Attempt To Look Serious About Spending PROMISE: President Obama Promised That PAYGO Would Force The Government To Live Within Our Means By Requiring Spending To Be Paid For. OBAMA: And thats why last week, I signed into law the PAYGO billsays very simply that the United States of America should pay as we go and live within our means again, just like responsible families and businesses do. (President Barack Obama, Remarks on Signing an Executive Order Establishing the National Commission
on Fiscal Responsibility and Reform and an Exchange With Reporters, Washington, D.C., 2/18/10)

FAIL: The Washington Post: Obamas So-Called PAYGO Rule Has $2.8 Trillion Loophole. First, as under existing House and Senate rules, what is known as the PAYGO law would not apply to discretionary spending programs, which account for about 40 percent of the federal budget Second, Mr. Obama would write into the law four whopping exceptions to the pay-as-you-go rule This adds up to a $2.8 trillion loophole over 10 years. (Editorial, The Obama Diet, The Washington Post, 6/12/09) The Washington Post: [T]he Presidents Self-Congratulatory Back-Patting About Fiscal Rectitude Is More Than A Bit Hard To Take In Light Of The Huge Exceptions He Would Grant. (Editorial, The Obama Diet, The Washington Post, 6/12/09)

Obama Tried To Distract From His Deficits With A Symbolic Spending Freeze PROMISE: Obama Promised To Pay For His Deficits With A Three-Year Discretionary Spending Freeze. OBAMA: So tonight Im proposing specific steps to pay for the trillion dollars that it took to rescue the economy last year. Starting in 2011, we are prepared to freeze Government spending for 3 years. (President Barack Obama, Address Before A Joint Session Of Congress On
The State Of The Union, Washington, D.C., 1/27/10)

FAIL: A White House Official Admitted The So-Called Spending Freeze Was Mainly For Larger Symbolic Value. It is the growth in the so-called entitlement programs Medicare, Medicaid and Social Security that is the major factor behind projections of unsustainably high deficits, due to rapidly rising health costs and an aging population. But one administration official said that limiting the much smaller discretionary domestic budget would have larger symbolic value. (Jackie Calmes, Obama Seeks Freeze On Many Domestic Programs, The
New York Times, 1/25/10)

Liberal Economist Brad Delong Says Obamas Proposal To Freeze Discretionary Spending Is A Perfect Example Of Fundamental Unseriousness Of Obamas Commitment To Tackle The Deficit. [T]his is a perfect example of fundamental unseriousness: rather than make proposals that will actually tackle the long-term deficit come up with a proposal that does short-term harm to the economy without tackling the deficit in any serious and significant way. (Brad Delong,
Barack Herbert Hoover Grover Cleveland Obama? Brad Delongs Grasping Reality With Opposable Thumbs , 1/25/10)

Obama Opposes A Balanced Budget Amendment The White House Strongly Opposes A Balanced-Budget Amendment. The Obama administration said Tuesday that a balanced-budget amendment heading for a House vote 15

this week could impose serious risks on the economy and force cuts to essential programs such as Medicare and Social Security. The White House, in a statement, said it strongly opposed the balanced budget amendment being considered by the House. (Jim Abrams, White
House Opposes Balanced-Budget Amendment, The Associated Press, 11/15/11)

President Obamas Re-Election Campaign Is Pushing Back On A Proposed Constitutional Amendment To Balance The Federal Budget That The Republican-Run U.S. House Is Scheduled To Vote On Friday. (David Jackson, Obama Campaign Bashes Balanced Budget
Amendment, USA Todays The Oval, 11/17/11)

According To The Campaign, A Balanced Budget Amendment Would Jeopardize Everything From Education And Medicare To Nutrition And Health Programs For At-Risk Children. If passed, the Republican proposal would require deep spending cuts that could jeopardize everything from education and Medicare to nutrition and health programs for at-risk children, says the Obama campaign website. (David Jackson, Obama Campaign Bashes Balanced Budget Amendment, USA Todays The
Oval, 11/17/11)

The Campaign Claims Medicare And Social Security Will Be Cut In Crucial Battleground States. According to the Obama team, Medicare could be cut by: $2.4 billion in Virginia; $4.4 billion in Michigan; and $1.1 billion in Iowa. Their list of possible Social Security cuts: $12.9 billion in Florida; $3.7 billion in Arizona; and $5.9 billion in North Carolina. (David Jackson, Obama Campaign Bashes Balanced Budget Amendment, USA
Todays The Oval, 11/17/11)

White House Press Secretary Jay Carney Says That Our Debt Problem Does Not Require A Constitutional Amendment. CARNEY: A balanced budget amendment has, today and has always been, about ducking responsibility rather than taking our challenges head on. This is not -- we dont need -- I mean, the Constitution should not be used to simply abdicate responsibility. What we need to do here is not complicated. It does not require a constitutional amendment and the ratification by preponderance of states here.
(The White House, Press Briefing , Washington D.C., 7/13/11)

OBAMA HAS DUCKED HIS CHANCES TO LEAD ON SOLVING OUR LOOMING FISCAL CRISIS DESPITE PLEDGES TO DO SO
THEN: President-Elect Obama In 2009: We Have To Signal Seriousness In This By Making Sure Some Of The Hard Decisions Are Made Under My Watch, Not Someone Elses. (Michael D. Shear, Obama Pledges Entitlement Reform, The Washington Post, 1/16/09) NOW: President Obama Has Been All-Too-Willing To Avoid Making Tough Decisions. One of President Obamas political weaknesses in his first term has been that hes all-too-willing to avoid making tough decisions, hesitant to expend political capital for potential long-term gain. Throughout his first term in office, hes had a cautious governing style, and has avoided taking on some of his partys core constituencies. (Josh Kraushaar, Obama
Trying To Have It Both Ways, National Journal, 11/30/11)

Treasury Secretary Timothy Geithner Admitted The Administration Doesnt Have A Definitive Solution To Our Long-Term Entitlement Crisis. REP. PAUL RYAN: Because we got 10,000 people retiring every day, and healthcare costs going up TREASURY SECRETARY TIMOTHY GEITHNER: Thats right. We have millions of Americans retiring every day, and that will drive substantially the rate of growth 16

of healthcare costs. You are right to say were not coming before you today to say we have a definitive solution to that long-term problem. What we do know is, we dont like yours. (Testimony Before The House Committee On The Budget, U.S. House Of Representatives, 2/16/12) Obamas FY2013 Budget Failed To Lead On The Deficit, Instead Recycling Old Ideas Obamas FY2013 Budget Is Essentially The Same Framework He Proposed In September. President Barack Obama will release his budget plan next week, calling for $3 trillion in deficit reductions over 10 years, including $1.5 trillion in tax increases to fall mostly on the wealthiest Americans. If that sounds familiar, its because the president essentially laid out his budget plan in September, following a failed bipartisan deficitreduction deal. (Laura Meckler, Budget Plan Has Familiar Ring, The Wall Street Journal, 2/7/12) Los Angeles Times: Obama Offers No Real Solution To The United States LongTerm Fiscal Problems. The day after the Greek Parliament approved another round of deep spending cuts in the face of violent protests, President Obama released a budget proposal for the coming fiscal year that offers no real solution to the United States long-term fiscal problems. (Editorial, What About The U.S. Debt? Los Angeles Times,
2/14/12)

The Washington Post: The Final Budget Of His First Term Does Not Reflect The Leadership On Issues Of Debt And Deficit That Mr. Obama Once Vowed. (Editorial,
Obamas Budget Falls Short, But It Beats Many Alternatives, The Washington Post, 2/13/12)

ObamaCare Only Exacerbates The Problems Facing Medicare Obama Deputy Campaign Manager Stephanie Cutter Bragged About ObamaCares Cuts To Medicare. CUTTER: Well, you know ask the wealthy to pay a little bit more. Cut waste from the government. Reform Medicare. More than $300 billion in savings from Medicare. On top of the savings weve already achieved. You know I heard Mitt Romney deride the $700 billion cuts in Medicare that the president achieved through health care reform. (CBS Face The Nation, 8/12/12) Medicare Actuary Richard Foster On ObamaCares Medicare Cuts: Its Pretty Hard To Imagine That They Could Be Sustainable. FOSTER: And the figures you quoted were correct. And that assumes that again, the private health insurance cant do something comparable to these mandated reductions in growth rates that are part of current law now for Medicare. In looking at those, its pretty hard to imagine that they could be sustainable, because when you think about it, the providers have to pay certain input cost increases. They have to pay somewhat more next year than they do this year. They have to pay higher energy costs. They have medical supplies. They have rent or leases that go up. (Richard S. Foster,
Testimony Before The House Committee On The Budget, U.S. House Of Representatives, 7/13/11)

Foster: There Is A Lot Of Evidence That Suggests Some Of These Payment Provisions Will Not Be Sustainable In The Long Range. FOSTER: But there is a lot of evidence that suggests some of these payment provisions will not be sustainable in the long range. (Richard S. Foster, Testimony Before The House Committee On The Budget, U.S.
House Of Representatives, 7/13/11)

Foster: The Productivity Adjustments Under The Affordable Care Act Could Well Lead To A Situation Where Medicare Payment Rates Are Just Inadequate So That They May Not Be Viable In The Long Range. FOSTER: Also, as I testified before your committee in January, the productivity adjustments under the Affordable Care Act could well lead to a situation where Medicare payment rates are 17

just inadequate so that they may not be viable in the long range. If, in fact, these features do not prove to be viable, then the actual cost for Medicare will be much higher than projected under current law. (Richard S. Foster, Testimony Before The House Committee On
The Budget, U.S. House Of Representatives, 7/13/11)

CBO: ObamaCares Medicare Policies Could Be Difficult To Sustain Over The Long Term. Beyond the initial 10-year span, CBO assumed that three Medicare policies that might be difficult to sustain over a long periodfurther reductions in payment updates for most providers in the fee-for-service program, the sustainable growth rate mechanism for payment rates for physicians, and the IPABwould not continue past 2021. Without those policies in place, CBO expects that excess cost growth will follow the path of underlying excess cost growth described above. As a result, excess cost growth for Medicare averages 1.3 percentage points between 2022 and 2085. Projections of the number of Medicare beneficiaries are the same as those under the extended-baseline scenario. (Congressional Budget
Office, The Long-Term Budget Outlook, June 2011, p. 45)

Obamas FY2013 Budget Will Raise Taxes But Wont Curb The Debt Obamas Budget Will Result In Monumental Tax Increases. The only thing that you can be certain will become law in this budget if Mr. Obama is re-elected is the monumental tax increase. His plan would raise tax rates across the board on anyone or any business owners making more than $200,000 for individuals and $250,000 for couples. These are the 3% of taxpayers that Mr. Obama says arent paying their fair share, though that 3% pays more in income tax than the rest of the other 97%. (Editorial, The Amazing Obama Budget, The Wall
Street Journal, 2/14/12)

Obamas FY2013 Budget Calls For $1.9 Trillion In Higher Taxes. (Fiscal Year 2013 Budget Of The
U.S. Government, Office Of Management And Budget, 2/13/12)

This Budget Has $1.9 Trillion In Tax Increases/Revenue Raisers And It Still A) Adds $6.7 Trillion In New Debt From 2013 To 2022, And B) Has Debt As A Share Of GDP Rising From 74.2 Percent This Year To 76.5 Percent In 2022. Wow. (Jim Pethokoukis, First Thoughts On The New Obama Budget, The Americans The Enterprise 2/13/12)

Obamas FY2013 Trillion Tax Increase Brings The Federal Tax Revenue To Its Second Highest Level Since World War Two, Not A Modest Tax Increase. President Obama is not proposing modest tax increases. His $1.7 trillion tax hike would take federal tax revenue (as a share of output) to its second highest level since World War Two. Only once, outside of WWII, was revenue higher. And that was in 2000, when money was flooding into federal coffers due to capital gains from the final days of the Internet stock bubble. (Jim Pethokoukis, First Thoughts On The New Obama Budget, The Americans The Enterprise 2/13/12) Obamas Budget Imposes $156 Billion In Government Fees. Obamas plan would impose $156 billion in new or expanded government fees including higher Medicare premiums for wealthier beneficiaries beginning in 2017. It would also increase the terrorism-security fee charged to airline passengers as well as the premiums paid by companies for federal pension insurance, among other changes.
(Roger Runningen and Brian Faler, Obama Sends $3.8T Budget To Congress, Bloomberg, 2/13/12)

Erskine Bowles And Alan Simpson: Obamas Budget Would Only Briefly Stabilize The Debt At A Level That Is Already Too High. While the Presidents proposal is a step in the right direction, it would achieve less deficit reduction than the Fiscal Commission proposed when compared on an equal basis and would only briefly stabilize the debt at a 18

level that is already too high. (Press Release, Statement from Senator Al Simpson and Erskine Bowles Regarding
President Obamas Fiscal Year 2013 Budget, The Moment Of Truth Project, 2/13/12)

Obama Walked Away From His Grand Bargain With Boehner For Political Reasons President Obama Walked Away From The Grand Bargain. Eight months after deficit talks between the nations top two elected officials collapsed, a 4,600-word inside-theroom narrative by The Washington Post on Sunday the first of several sweeping accounts in the works paints the Obama administration as walking away from a nearly done agreement with Boehner. And when the president eventually came around and wanted to cut a deal, Boehner said it was too late. (Jake Sherman, Debt Story Tally: John Boehner 1, President
Obama 0, Politico, 3/18/12)

Obama Feared Backlash From The Left If He Agreed To The Grand Bargain. The negotiations with House Republicans were Obamas clearest opportunity to realize his 2008 campaign pledge to usher in a more productive, bipartisan era in Washington. The president has since pivoted to make a more concerted appeal to the Democratic base, blasting those he calls intransigent Republicans at every opportunity. But in the Posts version of events, Obama is portrayed as worrying he would face a backlash from the left if he pulled the trigger. (Jake Sherman, Debt Story Tally: John Boehner 1, President Obama 0, Politico, 3/18/12) Obamas Then-Chief Of Staff Bill Daley Confirmed That The President Lost His Nerve And Walked Away From The Deal. And former Obama chief of staff Bill Daley provided surprising, on-the-record support of the GOPs insistence that the president deserves blame for losing his nerve. (Jake Sherman, Debt Story Tally: John Boehner 1, President Obama 0, Politico, 3/18/12) Daley Said The White House Privately Fretted That Democrats Would Go Ballistic Daley said the White House privately fretted that Democrats would go ballistic if the president agreed to $800 billion in new tax revenues when some Republican senators had signaled willingness to go along with as much as $2 trillion. (Jake Sherman, Debt Story Tally: John Boehner 1, President Obama 0, Politico, 3/18/12) Obama Was Nervous About How To Sell The Deal, So He Upped The Ante In A Way That Killed The Deal. But interviews with most of the central players in those talks some of whom were granted anonymity to speak about the secret negotiations as well as a review of meeting notes, e-mails and the negotiating proposals that changed hands, offer a more complicated picture of the collapse. Obama, nervous about how to defend the emerging agreement to his own Democratic base, upped the ante in a way that made it more difficult for Boehner already facing long odds to sell it to his party. Eventually, the president tried to put the original framework back in play, but by then it was too late. The moment of making history had passed. (Peter Wallsten, Lori Montgomery, and Scott Wilson, Obamas Evolution: Behind
The Failed Grand Bargain On The Debt, The Washington Post, 3/17/12)

Rather Than Making The Tough Choices, Obama Punted Finding A Solution To The Deficit To A Commission In An Election-Year Ploy, Then He Ignored Their Findings Obama Promised That Once The Bipartisan Fiscal Commission Finishes Its Work, I Will Spend The Next Year Making The Tough Choices Necessary To Further Reduce Our Deficit And Lower Our Debt. (President Barack Obama, Remarks At The Cuyahoga Community College West
Campus, Parma, OH, 9/8/10)

President Obama Said His Fiscal Commission Cant Be One Of Those Washington Gimmicks That Lets Us Pretend We Solved A Problem. (President 19

Barack Obama, Address Before A Joint Session Of Congress On The State Of The Union, Washington, D.C., 1/27/10)

[W]ith Congressional Democrats Due To Face Voters In November, Obama Punted The [Deficit] Problem To The Bipartisan Panel Instead, with congressional Democrats due to face voters in November, Obama punted the problem to the bipartisan panel, formally known as the National Commission on Fiscal Responsibility and Reform, and ordered it to deliver a solution by Dec. 1, well after the fall elections. (Lori Montgomery, GOP Leaders Agree To Panel On Federal Deficit, The Washington Post,
2/19/10)

FLASHBACK: As A Candidate, Obama Mocked Commissions Saying That They Are Washington-Speak For Well Get Back To You Later. OBAMA: And then yesterday, John McCains big solution to the crisis were facing is - get ready for it - a commission. Thats Washington-speak for well get back to you later. (Sen. Barack
Obama, Remarks, Elko, NV, 9/17/08)

The Associated Press Fact Check: Obama Has Yet To Sign On To Any Of The Ideas, Even Though He Promised When Creating The Panel That It Would Not Be One Of Those Washington Gimmicks. (AP Fact Check: Obamas Budget Goals Dont Add Up, The Associated Press, 1/26/11) President Obamas Budget Did Not Opt For The Bold, Comprehensive Approach To Reining In The Fast-Growing Federal Debt That His Own Fiscal Commission Has Said Is Needed, Now. With the budget he is to unveil Monday, President Obama has not opted for the bold, comprehensive approach to reining in the fast-growing federal debt that his own fiscal commission has said is needed, now. (Jackie Calmes, A Cautious Approach Seeking Bipartisan Appeal, The New York Times, 2/13/11) After Shelving Their Recommendations, MSNBCs Chuck Todd Asked The President What Was The Point Of The Fiscal Commission? MSNBCs CHUCK TODD: Everything you have talked abouttax reform, the entitlement reform, two parties coming togetherjust happened in December in your fiscal commission. You had a majority consensus to do all this. It's now been shelved. It seems that you have not takenI guess my question is what was the point of the fiscal commission? (President Barack Obama, The Presidents News Conference, Washington, D.C., 2/16/11)

A Year After Appointing A Bipartisan Commission To Recommend Ways To Deal With The Debt, Obama Would Bypass Almost All Of Its Painful Prescriptions A year after appointing a bipartisan commission to recommend ways to deal with the debt, Obama would bypass almost all of its painful prescriptions to cut huge benefit programs like Social Security and Medicare. (Obamas Proposed Budget: Some Cuts, But Not The Slashes Republicans Request,
The Associated Press, 2/14/11)

The Des Moines Register: Instead Of Taking Their Recommendations, Obama Proposed A Federal Budget That Avoided All Those Hard Decisions. By Its Own Projections, The Obama Budget Had The National Debt Growing To $21 Trillion. The commission tackled the tax code, discretionary spending, Medicare and Social Security. Obama ignored the report of the commission, which he appointed and was cochaired by former Republican Sen. Alan Simpson and former Clinton White House chief of staff Erskine Bowles. Instead, he proposed a federal budget that avoided all those hard decisions. By its own projections, the Obama budget had the national debt growing to $21 trillion. (Editorial, Its Time To Dust Off The Simpson-Bowles Plan, The Des Moines Register, 11/26/11) The Washington Posts Ezra Klein: Its Like The Fiscal Commission Never 20

Happened. (Ezra Klein, 2012 Budget: Like the Fiscal Commission never happened, The Washington Post, 2/14/11) Obamas FY2012 Budget Ignored The Fiscal Commission In Favor Of A Political Document Full Of Gimmicks Obamas Budget Was A Political Document By Someone That Wants To Win ReElection. Obamas $3.7 trillion budget is an opening bid, as well as a political document by someone who wants to win re-election... Bottom line: Presidential budgets are more political documents than anything else, and this budget is by someone who wants to win re-election. (NBC News First Read, 2/14/11) The New York Times: What Mr. Obamas Budget Is Most Definitely Not Is A Blueprint For Dealing With The Real Long-Term Problems That Feed The Budget Deficit... (Editorial, The Obama Budget, The New York Times, 2/14/11) The Washington Post: President Obamas Budget Kicks The Hard Choices Further Down The Road. (Editorial, President Obamas Budget Kicks The Hard Choices Further Down The
Road, The Washington Post, 2/15/11)

Given The Chance To Show Leadership With His Budget, Obama Chose Instead To Duck Behind The Sort Of Budgetary Gimmicks He Once Derided. Having been given the chance, the cover and the push by the fiscal commission he created to take bold steps to raise revenue and curb entitlement spending, President Obama, in his fiscal 2012 budget proposal, chose instead to duck. To duck, and to mask some of the ducking with the sort of budgetary gimmicks he once derided.
(Editorial, President Obamas Budget Kicks The Hard Choices Further Down The Road, The Washington Post, 2/15/11)

Obama Falsely Claimed That His FY2012 Budget Did Not Add To the Debt President Barack Obamas Claim Tuesday That His Proposed Budget Would Stop Adding To The National Debt Is Wrong And Is Proved Wrong In His Own Budget.
(Steven Thomma, Obama Says Hed Stop Adding To Debt, But Thats Not True, McClatchy Newspapers, 2/15/11)

Robert Bixby, Director Of The Concord Coalition, On Obamas Claim: Its Not True. Whats that mean about Obamas statement Tuesday? Its not true, said Robert Bixby, the director of the Concord Coalition, a nonpartisan budget watchdog group. (Steven Thomma, Obama Says Hed Stop Adding To Debt, But Thats Not True, McClatchy Newspapers, 2/15/11) Obamas Budget Shows National Debt Would Grow Every Year And Almost Double By FY 2021. However, his budget shows that the gross national debt would continue to rise every year under his proposal, almost doubling from $13.5 trillion last year to $26.3 trillion in fiscal 2021. (Steven Thomma, Obama Says Hed Stop Adding To
Debt, But Thats Not True, McClatchy Newspapers, 2/15/11)

PolitiFact Rated Obamas Claim That His Budget Would Not Add To The Debt As FALSE. We think the presidents statement is likely to mislead a lot of Americans about what his budget would do. So we rate Obamas statement False. (Barack Obama Says White House
Budget Would Not Add To The Debt Within A Few Years, PolitiFact, 2/15/11)

ABC News Jake Tapper: The President Seems To Think That That Borrowing Money To Pay The Interest On The Debt Is Not Adding To The Debt. I Dont Understand That Math. (Jake Tapper, Borrowing To Pay Interest On A Debt Isnt Creating Debt?: Todays Qs For Os WH 2/16/2011, ABC News'
Political Punch, 2/16/11)

Despite Factual Inaccuracies, White House Continued To Push Claim That Obamas Budget Did Not Add To The Debt. ABCs JAKE TAPPER: Just to button this, you think 21

that, We will not be adding more to the national debt, is a statement that stands to scrutiny? WHITE HOUSE PRESS SECRETARY JAY CARNEY: Absolutely, absolutely. (Jake

Tapper, Borrowing To Pay Interest On A Debt Isnt Creating Debt?: Todays Qs For Os WH 2/16/2011, ABC News' Political Punch, 2/16/11)

Tapper: If I Borrow Money From You To Pay Off The Interest For The Debt I Owe To Geoff, Am I Not Adding To My Debt(Jake Tapper, Borrowing To Pay Interest On A Debt Isnt
Creating Debt?: Todays Qs For Os WH 2/16/2011, ABC News' Political Punch, 2/16/11)

Obamas Proposal To The Super Committee Failed To Tackle Our Long-Term Challenges Suffering An Erosion Of Support From The Broad Coalition That Elected Him, Obama Has Crafted A Plan That Reads More Like A Blueprint For Shoring Up His Restless Democratic Base Than A Vehicle For Reaching Across The Aisle In Search Of Bipartisan Compromise. (Carrie Budoff Brown and Jennifer Epstein, Obama To Unveil $3T Deficit Plan, Politico,
9/18/11)

Responding To Pressure From Progressives, The President Will Not Seek An Increase In The Medicare Eligibility Age From 65 To 67, Stepping Back From A Controversial Idea He Endorsed During His Talks With Boehner. Responding to pressure from progressives, the president will not seek an increase in the Medicare eligibility age from 65 to 67, stepping back from a controversial idea he endorsed during his talks with Boehner. Obama had already signaled last week that he would not tackle Social Security in his plan, another shift away from his high-wire talks with Boehner. (Carrie
Budoff Brown and Jennifer Epstein, Obama To Unveil $3T Deficit Plan, Politico, 9/18/11)

USA Today: Obamas Failure To Tackle Entitlement Programs Was Irresponsible. Thats mostly because Obama failed to take on the entitlement programs, by far the biggest drivers of future spending. Thanks to a weak economy, Baby Boomer retirees and payroll tax cuts, Social Security is already running in the red. Congressional Budget Office projections show it will add a half trillion dollars to the debt over the next decade, making Obamas refusal to tackle it now irresponsible. (Editorial, Editorial: Politics Takes Priority In Obamas Deficit Plan, USA Today, 9/19/11)

The Dallas Morning News: Obamas Proposal A Sign He Has Abdicated Leadership. But this newspaper sees problems in his fine points, beginning with his almost total dodge on entitlement reforms. Obama identified only about $300 billion in Medicare and Medicaid savings. And not a single detail about overhauling Social Security. Washington cant fix the $14 trillion debt problem without overhauling those programs, which are big debt drivers. The president knows all this and simply abdicated leadership. (Editorial, Editorial: Gang Of 38 Offers A
Better Debt Approach, The Dallas Morning News, 9/19/11)

During The Super Committees Deliberations, Obama Spent Far More Time Engaged In Solving Europes Debt Crisis Than Solving The United States Debt Crisis Obama Only Placed One Phone Call To Each Of The Super Committee Co-Chairs; By Contrast Mr. Obama Has Held Multiple Calls With European Leaders. After that, according to the White House, he placed one phone call to each of the committees cochairmen. By contrast Mr. Obama has held multiple calls with European leaders and spent time with them in person. He held a offered his counsel as they tried to reach a debt deal during the Group of 20 Summit in France. (Carol E. Lee, Obama Focuses On Europes Debt Problems, Not So Much
Americas, The Wall Street Journal, 11/22/11)

After The Super Committee Failed, Obama Held A Summit In Washington, D.C., 22

With European Leaders To Discuss Their Debt Crisis. President Barack Obama and European Union leaders are meeting at the White House amid financial instability in Europe that could threaten the U.S. economy. The day-long summit comes as analysts warn that the euro could be days away from collapsing. The U.S. maintains that Europe has the capacity to address its financial woes, but officials acknowledge that economic problems in Europe can negatively impact the U.S.
(President Obama, European Union Leaders Meet Amid Debt Concerns, The Associated Press, 11/28/11)

On The Day The Super Committee Failed, Obama Placed Calls To The Prime Ministers Of Italy And Greece To Discuss Their Debt Problems. President Barack Obamas calls on Monday to the prime ministers of Italy and Greece underscore just how much more time in recent weeks he has personally invested in trying to solve the debt problems facing Europe than those facing the U.S. (Carol E. Lee,
Obama Focuses On Europes Debt Problems, Not So Much Americas, The Wall Street Journal, 11/22/11)

Obama Has Done Nothing To Encourage A Deal. Obama has done nothing to encourage a deal. Indeed, from the beginning, after he agreed to accept the super committee formula in exchange for raising the debt ceiling, he has kept his hands clean.
(Marc Ambinder, Obama Relishes Tax-Hike Contrast, National Journal, 11/21/11)

Obama Sat Happily On The End Of The Bench As The Clock Ran Out On The Super Committee. President Barack Obama prides himself on being a clutch player, but he sat happily on the end of the bench as the clock ran out on the supercommittee. Then he took his shot after the buzzer. (Carrie Budoff Brown and Glenn Thrush, Obamas Rule Of Engagement, Politico, 11/22/11) The Economist: Barack Obama Remained Damagingly Aloof Throughout The Supercommittees Fruitless Deliberations. Second, the past few months have confirmed even more strongly the near-irrelevance of the president. A Ronald Reagan or a Bill Clinton would have been much more effectively engaged in twisting arms and, where necessary, dispensing favours. Barack Obama remained damagingly aloof throughout the supercommittees fruitless deliberations. This should not have been surprising, given his lamentable failure a year ago to endorse the effective and brave conclusions of the BowlesSimpson deficit commission that he personally appointed. But it does not bode well for the futureassuming that he has one, and is not turfed out of office in a years time. (Editorial, A
Downgrade For Congress, The Economist, 11/26/11)

OBAMAS BUDGETS HAVE NOT RECEIVED A SINGLE YEA IN TWO YEARS

0-99: Obamas FY2013 Budget Gets ZERO Votes In The Senate Today, The Senate Unanimously Rejected President Obamas Budget. (S.Con.Res.41, Roll Call
Vote #97, Motion To Proceed Rejected 0-99, 5/16/12)

For The Second Year In A Row, Obamas Budget Has Failed To Receive A Single Vote In The Senate. In a 99-0 vote, all of the senators rejected the presidents blueprint. Its the second year in a row the Senate has voted down Obamas budget. Obamas 2012 budget failed 97 to 0 last May after Obama himself last April said he wanted deeper deficit cuts. (Erik Wasson and Daniel Strauss, Senate Rejects Obama Budget In 99-0 Vote, The
Hill, 5/16/12)

President Obamas Budget Suffered A Second Embarrassing Defeat Wednesday, When Senators Voted 99-0 To Reject It. (Stephan Dinan, Obama Budget Defeated 99-0 In Senate, The
Washington Times, 5/16/12)

23

Coupled With The Houses Rejection In March, 414-0, That Means Mr. Obamas Budget Has Failed To Win A Single Vote In Support This Year. (Stephan
Dinan, Obama Budget Defeated 99-0 In Senate, The Washington Times, 5/16/12)

0-414: Obamas FY2013 Budget Got ZERO Votes In The House The House On Wednesday Night Unanimously Rejected An Alternative Budget Proposal Based On President Obamas 2013 Budget Plan, Dispatching It In A 0-414 Rout. (Pete Kasperowicz, 0-414 Vote: House Clobbers Budget Proposal Based On Obamas 2013 Plan, The Hill, 3/28/12) In An Attempt To Downplay An Ugly-Looking Vote The White House Called The Vote On Their Budget A Gimmick. The vote came just hours after the White House cast the pending vote as a political gimmick, an apparent attempt to downplay what many expected to be an ugly-looking vote for the White House. (Pete
Kasperowicz, 0-414 Vote: House Clobbers Budget Proposal Based On Obamas 2013 Plan, The Hill, 3/28/12)

0-97: Last Year, Obamas FY2012 Budget Was Unanimously Defeated In The Senate Last Year, Obamas FY2012 Budget Was Voted Down In The Senate 0-97. Obamas budget plans have a poor track record in Congress over the last year. In May 2011, 97 senators voted against a motion to take up his 2012 budget plan no senator voted in favor of the motion. (Pete Kasperowicz, 0-414 Vote: House Clobbers Budget Proposal Based On Obamas 2013 Plan, The Hill,
3/28/12)

The Senates Answer To Not Having A Budget: Vote No On Every Other Plan. They were unable to produce one last year, when they held both chambers of Congress and its not clear that any of their divisions over spending and taxing have been bridged. The Senates answer to not having a budget: Vote no on every other plan. (Jonathan Allen, Politico Huddle, 5/26/11) 0: Senate Democrats Have Not Passed A Budget For Over 1,238 Days And Thats A-OK With The White House

Senate Democrats Have Not Passed A Budget For 1,282 Days, Since April 29, 2009. (S.
Con. Res. 13, Roll Call 173; D 53-3, R 0-40, I 2-0, 4/29/09)

Sen. Harry Reid (D-NV) Said Last Year That It Would Be Foolish For Us To Do A Budget At This Stage. Senate Majority Leader Harry Reid said it would be foolish for Democrats to propose their own federal budget for 2012, despite continued attacks from Republicans that the party is ducking its responsibility to put forward a solution to the nations deficit problems. Theres no need to have a Democratic budget in my opinion, Reid said in an interview Thursday. It would be foolish for us to do a budget at this stage. (Lisa Mascaro, Harry Reid: Foolish For Democrats To Offer
Budget Plan, Los Angeles Times, 5/20/11)

White House Press Secretary Jay Carney Says The White House Has No Opinion On Whether The Senate Should Pass A Budget. ABC NEWS JAKE TAPPER: The White House has no opinion about whether or not the Senate should pass a budget? The presidents going to introduce one. The Fed chair says not having one is bad for growth. But the White House has no opinion about whether JAY CARNEY: I have no opinion the White House has no opinion on Chairman Bernankes assessment of how the Senate ought to do its business. (White House Press Briefing, 2/8/12) VIDEO: WH: No Opinion On Whether Federal Government Should Operate On A Budget 24

OBAMA KICKED THE CAN ON ENTITLEMENT REFORM

Obama Has Kicked The Can On Reforming Entitlements PROMISE: Obama: What We Have Done Is Kicked This Can Down The Road. We Are Now At The End Of The Road And Are Not In A Position To Kick It Any Further. (Michael
D. Shear, Obama Pledges Entitlement Reform, The Washington Post, 1/16/09)

Obama Said He Would Solve The Insolvency Of Our Entitlement Programs On His Watch. OBAMA: We have to signal seriousness in this by making sure some of the hard decisions are made under my watch, not someone elses. (Michael D. Shear, Obama
Pledges Entitlement Reform, The Washington Post, 1/16/09)

Obama Said A Discussion Around Entitlements Would Be A Central Part Of Plans To Approach The Deficit. We are beginning consultations with members of Congress around how we expect to approach the deficit, Obama said. We expect that discussion around entitlements will be a part, a central part, of those plans.
(Lori Montgomery, Congress Urges Spending Restraint, The Washington Post, 1/8/09)

FAIL: The Washington Post: The Final Budget Of His First Term Does Not Reflect The Leadership On Issues Of Debt And Deficit That Mr. Obama Once Vowed. (Editorial, Obamas
Budget Falls Short, But It Beats Many Alternatives, The Washington Post, 2/13/12)

Obama Is Avoiding Social Security Reform Because His Political Team Says The Debate Could Be Disastrous To His 2012 Reelection Hopes. But Obamas political team, led by David Axelrod, David Plouffe and Jim Messina, are urging the president to understand that backing benefit cuts could prove disastrous to his 2012 reelection hopes, sources say. (Alexander Bolton, Social Security Reform Splits White House Political, Economic Teams, The Hill, 3/15/11) Obama Avoided Changes To Entitlement Programs In His Super Committee Proposal In Favor Of A A Blueprint For Shoring Up His Restless Democratic Base. Suffering an erosion of support from the broad coalition that elected him, Obama has crafted a plan that reads more like a blueprint for shoring up his restless Democratic base than a vehicle for reaching across the aisle in search of bipartisan compromise. (Carrie Budoff Brown and Jennifer Epstein, Obama To Unveil $3T Deficit Plan, Politico, 9/18/11)

The Washington Posts Dana Milbank: The White Houses Budget For Fiscal 2013 Begins With A Broken Promise, Adds Some Phony Policy Assumptions, Throws In A Few Rosy Forecasts And Omits All Kinds Of Painful Decisions. The White Houses budget for fiscal 2013 begins with a broken promise, adds some phony policy assumptions, throws in a few rosy forecasts and omits all kinds of painful decisions. Even then, the proposal would add $1 trillion more to the national debt than Obama contemplated a few months ago and it is a non-starter on Capitol Hill, where even Senate Democrats have no plans to take it up. It is, in other words, exactly what it was supposed to be: a campaign document. (Dana Milbank, Op-Ed, Obamas Budget Games, The Washington Post, 2/13/12) Milbank: All The Sports Talk Amounted To A Head Fake, Or Perhaps A Quarterback Sneak, Because The Real Game The White House Was Playing Was Dodgeball: Evading Anything Resembling A Serious Budget Proposal.
(Dana Milbank, Op-Ed, Obamas Budget Games, The Washington Post, 2/13/12)

Obama Has Resorted To Playing Politics Rather Than Leading On Entitlements PROMISE: Obama Said That Entitlement Reform Wont Happen If People Demagogue Proposals To Fix The Problem. OBAMA: And I raise that not because we shouldnt have a 25

serious discussion about it. I raise that because were not going to be able to do anything about any of these entitlements if what we do is characterizedwhatever proposals are put out thereas, well, you know, thatsthe other party is being irresponsible; the other party is trying to hurt our senior citizens; that the other party is doing X, Y, Z. (President Barack
Obama, Remarks To The GOP Issues Conference, Baltimore, MD, 1/29/10)

Obama: Thats Why I Say If Were Going To Frame These Debates In Ways That Allow Us To Solve Them, Then We Cant Start Off By Figuring Out, A, Whos To Blame, B, How Can We Make The American People Afraid Of The Other Side. (President Barack Obama, Remarks To The GOP Issues Conference, Baltimore, MD, 1/29/10)

BROKEN: Despite Being Dubbed The Lie Of The Year Obama Still Accuses Republicans Of Attempting To End Medicare As We Know It. OBAMA: Governor Romney and his allies in Congress, they think that if we just get rid of more regulations on big corporations and give more tax breaks to the wealthiest Americans, if we end Medicare as we know it, make it a voucher system, then somehow this is all going to lead to jobs and prosperity for everybody. (President Barack Obama, Remarks At A Campaign Event, Council Bluffs, IA, 8/13/12) Politifact: Lie Of The Year 2011: Republicans Voted To End Medicare (Bill Adair
And Angie Drobnic Holan, Lie Of The Year 2011: Republicans Voted To End Medicare, Politifact, 12/20/11)

Politifact Debunked The Medicare Charge In Nine Separate Fact-Checks Rated False Or Pants On Fire, Most Often In Attacks Leveled Against Republican House Members. (Bill Adair And Angie Drobnic Holan, Lie Of The Year 2011: Republicans Voted To End
Medicare, Politifact, 12/20/11)

The Washington Post: Democrats Have Effectively Scared Seniors As A Political Tactic For Many Years. (Editorial, On Medicare, Reverting To A Well-Worn Strategy, The Washington Post, 5/8/11) The Washington Post: If The Goal Is To Deal With The Long-Term Fiscal Challenge, Though, The Democrats Political Success Is Apt Only To Prolong The Gridlock And Make The Eventual Solution That Much More Painful. (Editorial,
On Medicare, Reverting To A Well-Worn Strategy, The Washington Post, 5/8/11)

Former President Bill Clinton: I Think The Democrats Are Going To Have To Be Willing To Give Up, Maybe, Some Short-Term Political Gain By Whipping Up Fears On Some Of These Things CLINTON: I think the Democrats are going to have to be willing to give up, maybe, some short-term political gain by whipping up fears on some of these things if its a reasonable Social Security proposal, a reasonable Medicare proposal. Weve got to deal with these things. You cannot have health care devour the economy.
(President Bill Clinton, Remarks At Peterson Fiscal Summit, Washington, D.C., 5/25/11)

New Hampshire Union Leader Called The Democrats Attacks On Medicare Shameless. The non-partisan Politifact.com site rated that claim a pants on fire lie. It noted that Medicare continues under the Ryan plan, and funding for it increases. But being caught in a lie hasnt dampened the Democrats enthusiasm for it. Yesterday, Rep. Steve Israel, D-N.Y., head of the DCCC, said the DCCC will continue to use that attack. Shameless. (Editorial, Mediscare In NY: Terrifying Seniors Works, New Hampshire Union
Leader, 5/26/11)

The New York Times: Sooner Or Later, Democrats Will Have To Admit That Medicare Cannot Keep Running As It Is Sooner or later, Democrats will have to admit that Medicare cannot keep running as it is its medical costs are out of control, and a recent report showed its trust fund running out of money in 2024, five 26

years earlier than expected. It might require, as Mr. Clinton put it, giving up some short-term political gain, but voters might also appreciate a dose of honesty and realism in their political diet. (Editorial, Running On Medicare The Right Way, The New York Times, 5/25/11) USA Today: Unless The Democrats Propose A Viable Money-Saving Alternative, The Future Of Medicare Might Be The Least Of Their Problems. Just as surely, Democrats know that the simple math of health care will eventually shred the social safety net they seek to protect. Demonization of the Ryan plan might be a short-term political winner, but unless the Democrats propose a viable money-saving alternative, the future of Medicare might be the least of their problems. (Editorial, Mediscare Wont Save Medicare, USA Today, 5/25/11) Obama Tried To Claim His Health Care Law Was Entitlement Reform MORE WORDS: Obama Claimed Health Care Reform Was Entitlement Reform. OBAMA: Nothing will be more important to this goal than passing health care reform that brings down costs across the system, including in Medicare and Medicaid. Make no mistake: health care reform is entitlement reform. (President Barack Obama, Remarks at Georgetown
University, Washington, D.C., 4/14/10)

MORE FAILURES: CBO Director Douglas Elmendorf Says That Obamacare Will Not Diminish The Pressure That Medicare And Medicaid Spending Places On The Federal Budget. ELMENDORF: Rising health costs will put tremendous pressure on the federal budget during the next few decades and beyond. In CBOs judgment, the health legislation enacted earlier this year does not substantially diminish that pressure. (Douglas
Elmendorf, Health Costs And The Federal Budget, Congressional Budget Office, 5/26/10)

ObamaCare Will Increase Federal Health Care Spending $478 Billion From 20112012. President Barack Obamas health care overhaul will add $478 billion in spending from 2011-2021, the period covered by the projections. Some 30 million uninsured people will get coverage. (With Or Without Obamas Law; U.S. Health Care Costs Will Keep Outpacing Economy, The Associated Press,
6/12/12)

ObamaCare Will Accelerate Health Care Spending To 7.4 Percent. Despite the slow rate in health spending growth seen during the recession and beyond, in 2014 health spending growth is expected to pick up and accelerate to 7.4 percent. (Steven
Reinberg, Modest Health Care Spending Rise Expected For 2013, MSN, 6/12/12)

Sean Keehan, CMS Office Of The Actuary Senior Economist: In 2014, When ObamaCare Is Implemented, Health Care Spending Is Expected To Increase Significantly. We are expecting near-historic low growth in health spending for the first three years of our projection period, Sean Keehan, a senior economist in the CMS Office of the Actuary and lead author of the report, said during an earlyafternoon press conference. But in 2014, when all the facets of the Affordable Care Act go into effect, health care spending is expected to increase significantly, he added. This is especially the case for prescription drugs and clinician clinical services, Keehan said. (Steven Reinberg, Modest Health Care Spending Rise Expected For 2013, MSN, 6/12/12)

According To The Medicare Trustees Report, Changes Made To Medicare Under ObamaCare Are Not Viable In The Long Range. Further, while the Affordable Care Act makes important changes to the Medicare program and substantially improves its financial outlook, there is a strong likelihood that certain of these changes will not be viable in the long range. (The Board Of Trustees, Federal Hospital Insurance And Federal Supplementary Medical Insurance Trust Funds, 2011 27

Annual Report Of The Boards Of Trustees Of The Federal Hospital Insurance And Federal Supplementary Medical Insurance Trust Funds, 5/13/11)

Obama Has Ignored Reforming Our Entitlement Programs Despite Warnings That They Are Running Out Of Money By 2016, Social Securitys Disability Trust Fund Will Be Bankrupt. (Combined OASDI Trust
Funds: March 2012 Baseline, Congressional Budget Office, 3/13/12)

The Cumulative Shortfall In The Disability Trust Fund Will Total $260 Billion By 2022. (Combined OASDI Trust Funds: March 2012 Baseline, Congressional Budget Office, 3/13/12) Social Security Will Run A Primary Deficit Indefinitely, Reaching $113 Billion A Year By 2022. (Combined OASDI Trust Funds: March 2012 Baseline, Congressional Budget Office, 3/13/12)

The Trustees Of Social Security And Medicare Predict That Medicares Trust Fund Will Be Exhausted In 2024. The estimated exhaustion date for the HI trust fund remains at 2024, the same year shown in last years report. As in past years, the Trustees have determined that the fund is not adequately financed over the next 10 years. (2012 Annual Report In 2011, Medicare Required $27.7 Billion In Assets From The Trust Fund To Meet Its Obligations. HI expenditures have exceeded income annually since 2008, and projected amounts continue doing so through the short-range period until the fund becomes exhausted in 2024. In 2011, $27.7 billion in trust fund assets were redeemed to cover the shortfall of income relative to expenditures, and $12.0 billion in interest payments were made from the general fund of the Treasury to the HI trust fund. (2012 Annual Report Of The Boards Of Trustees Of The Federal Hospital Insurance And Federal
Supplementary Medical Insurance Trust Funds, The Boards Of Trustees, Federal Hospital Insurance And Federal Supplementary Medical Insurance Trust Funds, 4/23/12)

Of The Boards Of Trustees Of The Federal Hospital Insurance And Federal Supplementary Medical Insurance Trust Funds, The Boards Of Trustees, Federal Hospital Insurance And Federal Supplementary Medical Insurance Trust Funds, 4/23/12)

Medicare Began Redeeming Assets From The Trust Fund 15 Years Before The Projected Exhaustion Date. Although the Trustees project that the HI trust fund would not be exhausted until 2024 under current law, the demands on general revenue (to pay interest and redeem the Treasury bonds held by the trust fund) have already begun 15 years before the projected exhaustion date. (2012 Annual Report Of
The Boards Of Trustees Of The Federal Hospital Insurance And Federal Supplementary Medical Insurance Trust Funds, The Boards Of Trustees, Federal Hospital Insurance And Federal Supplementary Medical Insurance Trust Funds, 4/23/12)

In 2024 When The Trust Fund Is Exhausted, Medicares Tax Income Will Only Be Able To Cover 87 Percent Of Its Expenditures. Under current law, scheduled HI tax income would cover only 87 percent of estimated expenditures in 2024 and 67 percent in 2050. (2012 Annual Report Of The Boards Of Trustees Of The Federal Hospital Insurance And
Federal Supplementary Medical Insurance Trust Funds, The Boards Of Trustees, Federal Hospital Insurance And Federal Supplementary Medical Insurance Trust Funds, 4/23/12)

If Savings From ObamaCare Do Not Materialize Than The Trust Fund Is Expected To Be Exhausted Sooner. Without legislation to correct the financial imbalance, the fund would continue decreasing and use up all its remaining assets in 2024, and would thus become exhausted under the intermediate assumptions. If the reductions in Medicare price updates under the Affordable Care Act do not continue throughout this period, then asset depletion would occur slightly earlier in 2024, based on the illustrative alternative projections. (2012 Annual Report Of The Boards Of Trustees Of
The Federal Hospital Insurance And Federal Supplementary Medical Insurance Trust Funds, The Boards Of Trustees, Federal Hospital Insurance And Federal Supplementary Medical Insurance Trust Funds, 4/23/12)

28

Projections For Medicare Are Suspect Because They Depend On Savings From ObamaCare That Are Unlikely To Materialize. The Medicare figures are suspect, because they rely on billions of dollars in savings projected under the health care law signed by President Obama last year. Those savings depend on many factors, such as cuts in payments to doctors that Congress habitually sidesteps, as well as improvements in doctors and hospitals productivity. (Richard Wolf, Medicare, Social Security Running Out Of Money Faster, USA
Today, 5/13/11)

OBAMA IS OBSESSED WITH RAISING TAXES

Obama Claims He Hasnt Raised Taxes, But He Has Raised Taxes By Nearly $1 Trillion And Wants To Raise More In The Future President Obama Has Enacted 46 Tax Hikes, Raising Taxes A Total Of $1 Trillion. (Joint
Committee On Taxation, Congressional Budget Office, Office Of Managements And Budget, Accessed 10/30/12)

Obama Pays For His Government Takeover Of Health Care With $820.8 Billion In Job-Killing Taxes On Small Businesses, Investments And Innovation. (Updated

Estimates For The Insurance Coverage Provisions Of The Affordable Care Act, Congressional Budget Office, 3/12; Estimated Revenue Effects Of A Proposal To Repeal Certain Tax Provisions Contained In The Affordable Care Act, Joint Committee On Taxation, 6/15/12; Payments Of Penalties For Being Uninsured Under The Affordable Care Act, Congressional Budget Office, 9/19/12)

See The Appendix For All Of Obamas Tax Hikes

PolitiFact Rated Obamas Claim That He Didnt Raise Taxes Once FALSE. (Angie Drobnic
Holan, President Barack Obama Says He Didnt Raise Taxes Once, Politifact, 2/7/11)

PolitiFact: The Idea That Obama Did Not Raise Taxes Is Just Plain Wrong. The idea that Obama did not raise taxes is just plain wrong. He signed legislation raising taxes on cigarettes and other tobacco products soon after taking office; that money goes to pay for childrens health insurance programs. The law went into effect in 2009. He also signed the health care law, which includes taxes on indoor tanning that went into effect last year. (Angie Drobnic Holan, President Barack Obama Says He Didnt
Raise Taxes Once, Politifact, 2/7/11)

PolitiFact: Obama Said, I Didnt Raise Taxes Once. But Weve Documented Numerous Instances When He Has. (Angie Drobnic Holan, President Barack Obama Says He Didnt
Raise Taxes Once, Politifact, 2/7/11)

Obama Has Admitted He Will Raise Taxes Even More In 2013 If Reelected Obama Admits He Wants To Raise Taxes In 2013 If He Is Reelected. OBAMA: That is a reasonable proposition. So, when you hear folks saying Well, the president shouldnt want massive job killing tax increases when the economy is this weak. Nobodys looking to raise taxes right now. Were talking about potentially 2013 and the out-years. (President Barack Obama,
Press Conference, Washington, DC, 7/11/11)

VIDEO: Obama: I Want To Raise Taxes After Im Reelected

President Obama Has Proposed, Supported, Or Enacted 148 Tax Hikes Totaling $5.315 Trillion. (Joint Committee On Taxation, Congressional Budget Office, Office Of Managements And Budget, Accessed
10/30/12)

See The Appendix For All The Tax Hikes Obama Supported 29

Obama Is Setting Up The U.S. Economy For One Of The Biggest Tax Increases In History In 2013. President Obama unveiled part two of his American Jobs Act on Monday, and it turns out to be another permanent increase in taxes to pay for more spending and another temporary tax cut. No surprise there. What might surprise Americans, however, is how the President is setting up the U.S. economy for one of the biggest tax increases in history in 2013. (Editorial, The 2013 Tax Cliff, The Wall Street Journal, 9/14/11) Small Businesses Will Get Hit With A Giant Tax Bill. These tax increases would not be temporary. What this means is that millions of small-business owners had better enjoy the next 16 months, because come January 2013 they are going to get hit with a giant tax bill. (Editorial, The 2013 Tax Cliff, The Wall Street Journal, 9/14/11)

Fed Chair Ben Bernanke: On January 1st, 2013, There Is Going To Be A Massive Fiscal Cliff Of Large Spending Cuts And Tax Increases. But at the same time, I think you also have to protect the recovery in the near term. Under current law, on January 1st, 2013, there is going to be a massive fiscal cliff of large spending cuts and tax increases. I hope that Congress will look at that and figure out ways to achieve the same long run fiscal improvement without having it all happen at -- at one date. (Committee On Financial Services, U.S. House
Of Representatives, Hearing, 2/29/12)

Bernanke: The Fiscal Cliff Poses A Significant Threat To The Recovery. The picture the Fed chairman painted today was not pretty. The so-called fiscal cliff would, if allowed to occur, pose a significant threat to the recovery, Bernanke warned. (Sunlen Miller, Fed Chairman Ben Bernanke Warns Congress On Taxmageddon: If You All Go On Vacation, Its
Still Going To Happen, ABCs The Note, 6/7/12)

Bernanke: I Think It Would Be Very Likely That The Economy Would Begin To Contract Or Possibly Go Even Into Recession, And That Unemployment Would Begin To Rise. If no action were taken and the fiscal cliff were to kick in in its full size, I think it would be very likely that the economy would begin to contract or possibly go even into recession, and that unemployment would begin to rise. Bernanke said that, in the short term, if all the measures would occur together, it would amount to a withdrawal of spending and increase in taxation of between 3 and 5 percent of the gross domestic product, which would have a very significant impact on the near-term recovery. (Sunlen Miller, Fed Chairman Ben Bernanke Warns Congress On
Taxmageddon: If You All Go On Vacation, Its Still Going To Happen, ABCs The Note, 6/7/12)

Obamas FY2013 Budget Would Raise Taxes On 27 Percent Of Households Obamas FY2013 Budget Would Raise Taxes On 27 Percent Of U.S. Households According To A Study By The Tax Policy Center. President Barack Obamas 2013 budget plan would raise taxes for 27 percent of U.S. households in 2013, far more than the administration estimates, according to a nonpartisan study. The study released today comes from the Tax Policy Center, a research group in Washington that analyzes proposals from presidential candidates in both parties. Obama focuses the tax increases in his 2013 budget on corporations and the top 2 percent of individual taxpayers. The result in the centers study stems from the fact that taxpayers in all income brackets own parts of corporations. (Richard Rubin, Obama Budget Raises Taxes For 27% Of Households, Report Says, Bloomberg, 3/21/12) 8.6 Percent Of Households Earning Less Than $10,000 Would Have Their Taxes Increased. (Table T12-0044, Administrations FY2013 Budget Proposals, Tax Policy Center, 3/15/12) 30

11.9 Percent Of Households Making Between $10,000 And $20,000 Would Have Their Taxes Increased. (Table T12-0044, Administrations FY2013 Budget Proposals, Tax Policy
Center, 3/15/12)

18.1 Percent Of Households Making Between $20,000 And $30,000 Would Have Their Taxes Increased. (Table T12-0044, Administrations FY2013 Budget Proposals, Tax Policy
Center, 3/15/12)

22.2 Percent Of Households Making Between $30,000 And $40,000 Would Have Their Taxes Increased. (Table T12-0044, Administrations FY2013 Budget Proposals, Tax Policy
Center, 3/15/12)

23.6 Percent Of Households Making Between $40,000 And $50,000 Would Have Their Taxes Increased. (Table T12-0044, Administrations FY2013 Budget Proposals, Tax Policy
Center, 3/15/12)

31.6 Percent Of Households Making Between $50,000 And $75,000 Would Have Their Taxes Increased. (Table T12-0044, Administrations FY2013 Budget Proposals, Tax Policy
Center, 3/15/12)

38.7 Percent Of Households Making Between $75,000 And $100,000 Would Have Their Taxes Increased. (Table T12-0044, Administrations FY2013 Budget Proposals, Tax Policy
Center, 3/15/12)

51.4 Percent Of Households Making Between $100,000 And $200,000 Would Have Their Taxes Increased. (Table T12-0044, Administrations FY2013 Budget Proposals, Tax Policy
Center, 3/15/12)

Obama Raised Taxes Despite Saying It Was The Last Thing You Should Do In A Recession In 2009, President Obama Said [T]he Last Thing You Want To Do Is To Raise Taxes In The Middle Of A Recession (Obama: We Must Help Elkhart Reinvent Itself, MSNBC, 8/5/09) OBAMA: [B]ecause That Would Just Suck Up Take More Demand Out Of The Economy And Put Businesses In A Further Hole. (Obama: We Must Help Elkhart Reinvent
Itself, MSNBC, 8/5/09)

VIDEO: Obama Says You Dont Raise Taxes In A Recession Obama Broke His Promise Not To Raise Taxes On Families Making Less Than $250,000

In 2008, Obama Promised He Would Not Raise Any Taxes On Families Earning Less Than $250,000 A Year. OBAMA: I can make a firm pledge. Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes. (Senator Barack Obama,
Remarks In Dover, NH, 8/12/08)

PolitiFact Rates Obamas Tax Pledge As Promise Broken. We were willing to give President Barack Obama a Compromise rating on this promise when a new cigarette tax went into effect. But the latest health care bill includes more broad-based taxes that are pushing us toward Promise Broken. (Angie Drobnic Holan, Smokers, Tanning Aficionados, The Happily Uninsured:
More Taxes Coming At Ya!, PolitiFact, 4/8/10)

SIN TAX: President Obamas SCHIP Expansion Raised Cigarette Taxes, One Tax That Disproportionately Affects The Poor. One of President Barack Obamas campaign pledges on taxes went up in puffs of smoke Wednesday. The 31

largest increase in tobacco taxes took effect despite Obamas promise not to raise taxes of any kind on families earning under $250,000 or individuals under $200,000. This is one tax that disproportionately affects the poor, who are more likely to smoke than the rich. (Calvin Woodward, Promises, Promises: Obama Tax Pledge Up In Smoke, The Associated
Press, 4/1/09)

HEALTH CARE TAX: The Individual Mandate In ObamaCare Will Levy Taxes On Nearly Four Million People That Do Not Have Health Insurance, Regardless Of Their Income. Nearly 4 million Americans the vast majority of them middle class will have to pay a penalty if they dont get insurance when President Barack Obamas health care overhaul law kicks in, according to congressional estimates released Thursday. (Stephen Ohlemacher, Nearly 4m People Could Pay Without Health Coverage, The Associated
Press, 4/22/10)

TANNING TAX: ObamaCare Slaps A 10% Tax On Indoor Tanning Services. Indoor tanning salons will charge customers a 10 percent tax beginning in July in one of the changes Americans will see as a result of the U.S. health-care overhaul signed into law by President Barack Obama. (Shannon Pettypiece and Alex Nussbaum, Health-Care
Changes To Start Taking Effect This Year, Bloomberg, 3/24/10)

HSA TAX: ObamaCare Raised The Taxes On Early Withdraws From Health Savings Accounts. First, starting in January, people can no longer use the money tax-free for over-the-counter medications unless theyre prescribed by a doctor. In addition, people who use the HSA money for nonmedical expenses, will be hit with a 20 percent penalty instead of the current 10 percent. (Sarah Bruyn Jones, The Rising Cost Of
Health Care, The Roanoke Times, 11/7/10)

Obamas Plan To Let The Bush Tax Cuts Expire Would Affect Nearly One Million Small Businesses According To An NFIB Poll, 75 Percent Of Small Businesses Are Organized As PassThrough Entities (Sole Proprietors, Partnerships, S Corps, Etc.), Meaning They Pay Taxes On Their Business Income Based On The Individual Tax Rates. (Keeping Tax Rates
Low, NFIB, Accessed: 11/22/10)

Ernst & Young Says The Expiration The Of Bush Tax Cuts Would Result In A Smaller Economy, Fewer Jobs, Less Investment And Lower Wages. The confluence of fiscal policy changes scheduled to occur at the end of 2012 sometimes referred to as the fiscal cliff poses serious challenges for policy makers. One area of disagreement is the increase in tax rates for high-income taxpayers resulting in part due to the sunset of elements of the 2001 and 2003 tax cuts. This report finds that these higher marginal tax rates result in a smaller economy, fewer jobs, less investment, and lower wages. Specifically, this report finds that the higher tax rates will have significant adverse economic effects in the longrun: lowering output, employment, investment, the capital stock, and real after-tax wages when the resulting revenue is used to finance additional government spending. (Drs. Robert
Carroll and Gerald Prante, Long-Run Macroeconomic Impact Of Increasing Tax Rates On High-Income Taxpayers In 2013, Ernst & Young LLP, 7/12)

Employment In The Long-Run Would Fall By 0.5% Or, Roughly 710,000 Fewer Jobs, In Todays Economy. Employment in the long-run would fall by 0.5% or, roughly 710,000 fewer jobs, in todays economy. (Drs. Robert Carroll and Gerald Prante, Long-Run
Macroeconomic Impact Of Increasing Tax Rates On High-Income Taxpayers In 2013, Ernst & Young LLP, 7/12)

Economic Output Would Contract By 1.3 Percent, Or $200 Billion. This report finds that the increase in the top tax rates would reduce long-run output by 1.3% 32

when the resulting revenue is used to finance additional government spending. (Drs.
Robert Carroll and Gerald Prante, Long-Run Macroeconomic Impact Of Increasing Tax Rates On High-Income Taxpayers In 2013, Ernst & Young LLP, 7/12)

Wages Would Decrease By 1.8 Percent. Real (noninflationary) after-tax wages would fall by 1.8%, indicative of the decline in living standards relative to what would have occurred otherwise. (Drs. Robert Carroll and Gerald Prante, Long-Run Macroeconomic Impact
Of Increasing Tax Rates On High-Income Taxpayers In 2013, Ernst & Young LLP, 7/12)

The Joint Committee On Taxation Found President Obamas Tax Hike Would Raise Taxes On Nearly One Million Households And Small Businesses. According to JCT, next year 940,000 households within the top 2 percent will report net positive business income and will face marginal tax rates that would be 36 percent or 39.6 percent under Obamas plan, up from 33 percent and 35 percent now. That represents 3.5 percent of taxpayers who have business income and 53 percent of net positive business income, the analysis said. (Richard Rubin, Obama Plan Means Higher Taxes On Business Profits: Study, Bloomberg, 6/19/12) The Associated Press Fact Check: Obama White House Claimed That Raising The Top Two Tax Rates Would Only Hit 3 Percent Of Small Businesses. THE CLAIM: Obama and his Democratic allies insist that the vast majority of small businesses - or about 97 percent would be unaffected under his plan. They note that just 3 percent of those reporting business income on their tax returns earn more than the $200,000 - $250,000 thresholds for tax hikes. And they say allowing taxes to rise for the wealthiest Americans would save taxpayers $700 billion over ten years. (Tom Raum, FACT CHECK: Small Business Caught In Tax Battle, The
Associated Press, 11/29/10)

AP Fact Check: White House Distorts Data To Make It Appear That The Tax Hike Would Not Have A Large Affect On Small Businesses When In Fact 750,000 Would Be Hit With Higher Taxes. That distorts the overall percentages to make it appear the impact of the White House plan on small businesses is extremely limited. In fact, it would affect about 750,000 taxpayers who report business profits on individual income returns, according to the congressional Joint Committee on Taxation. (Tom Raum, FACT CHECK: Small Business Caught In Tax Battle, The Associated Press,
11/29/10)

Obama Flip Flopped On The Bush Tax Cuts, Signing A Two-Year Extension Which Caused A Revolt Amongst Democrats FLIP: In 2008, Obama Promised To End The Bush Tax Cuts For Top Earners. OBAMA: And to pay for that, were going to have to roll back the Bush tax cuts on the top two percent. And they can afford it. I can afford it. As the fact of the matter is we didnt need it and werent even asking for it. (Sen. Barack Obama, Remarks At Jefferson-Jackson Dinner, Indianapolis, IN, 5/4/08) In 2007, Obama Said He Considered The Definition Of Rich To Be Those Making More Than $250,000. CNNS WOLF BLITZER: Senator Obama, what is a definition of rich? OBAMA: Well, the definition that Im using with respect to paying for my health care plan is those making over $250,000 a year. Keep in mind that all were talking about is going back to the tax levels, the marginal tax rates that existed when Bill Clinton was in office. So were not talking about going back to huge marginal rates. (Sen. Barack Obama, Remarks At New Hampshire Democratic Presidential Candidates Debate,
Manchester, NH, 6/3/07)

FLOP: President Barack Obama Celebrated The Spirit Of Compromise As He Signed Into Law An Extension Of The Bush Tax Cuts. President Barack Obama celebrated the 33

spirit of compromise Friday as he signed a controversial $858 billion tax cut and unemployment insurance extension into law but warned that bipartisan comity could be fleeting. The bill, the result of a deal Obama cut with Senate Republicans over the objections of many Democrats, was a major victory for a White House that spent much of the past two years battling a unified GOP on the stimulus and health care reform. (Glenn
Thrush and Abby Phillip, Obama Signs Tax-Cut Bill In White House Ceremony, Politico, 12/17/10)

Obama Extended The Bush Tax Cuts In A Deal With Republicans. The Bush tax cuts would have expired in December of last year, but Obama agreed to extend them in a deal cut with Senate Republican leader Mitch McConnell during a lame-duck session of Congress. (Jim Kuhnhenn, Try As He Might, Obama Cant Shake Bush Tax Cuts, The Associated Press,
8/3/11)

Despite His Campaign Promise, Obama Blinked And Backed Away From Ending The Bush Tax Cuts. Time and again during his presidential campaign, Barack Obama was unequivocal: We are going to roll back the Bush tax cuts for the wealthiest Americans. But when the chips were down, now-President Obama blinked and backed away. (Jim Kuhnhenn, Try As He Might, Obama Cant Shake Bush Tax Cuts, The Associated
Press, 8/3/11)

Obama Agreed To Extend The Bush-Era Tax Cuts For The Wealthy. And for a time, he did, agreeing to extend the Bush-era tax cuts for the wealthy much to the annoyance of Hill Democrats and hiring Bill Daley as chief of staff, in part because of his ties to Hill Republicans. (Carrie Budoff Brown and Jonathan Allen, Partisan D.C.: Obamas Broken Promise, Politico, 1/17/12) Obama Forced To Defend Deal He Reached With Republicans To Extend Bush Tax Cuts Which Infuriated Democrats. President Obama on Tuesday forcefully defended the deal his administration has struck with Republicans to temporarily extend Bush-era tax cuts for all income levels, saying the concessions - some of which have infuriated liberals are necessary to avoid a tax increase for nearly all Americans at years end. (Perry Bacon Jr.,
Obama Defends White House Deal With GOP On Tax Cuts, The Washington Post, 12/7/10)

Adam Green, Leader Of A Liberal Activist Group Called The Progressive Campaign Change Committee, Said, President Obama Let Down Millions Of Voters. (Perry Bacon Jr., Obama Defends White House Deal With GOP On Tax Cuts, The Washington Post, 12/7/10) House Democrats Were So Upset With The Concessions, Vice President Biden Had To Meet With House Leadership To Avoid A Revolt. Even now, House Democrats, unhappy with concessions the White House seems prepared to make, present a potential hurdle to the gathering bipartisan consensus in the Senate. To avert a revolt, Vice President Joe Biden met with House Speaker Nancy Pelosi, Democratic Leader Steny Hoyer and Rep. Chris Van Hollen (D., Md.), a negotiator for the party in bipartisan tax talks, for about two hours at the vice presidents residence Saturday night. (John D. McKinnon And Janet Hook, Tax Deal Within Reach, The Wall Street Journal,
12/6/10)

Frustrated Liberals Say Obama Missed Key Opportunities To Roll Back The Bush Tax Cuts. Twice in less than nine months, Obama has shelved his pledge in deadline-pressing negotiations with congressional Republicans. Obama insists he still is determined to find new revenue by making taxpayers who make more than $200,000 and big corporations pay more, but frustrated liberals say he has already missed key opportunities. (Jim Kuhnhenn, Try As He Might, Obama Cant Shake Bush Tax Cuts, The Associated
Press, 8/3/11)

34

Obama Is Intrigued By [The] Elegance Of Allowing All Of The Bush Tax Cuts To Expire Next Year Obama Has Said He Is Agnostic On Raising Taxes On Those Making Less Than $250,000 As Part Of A Plan To Reduce The Deficit. President Barack Obama said he is agnostic about raising taxes on households making less than $250,000 as part of a broad effort to rein in the budget deficit. Obama, in a Feb. 9 Oval Office interview, said that a presidential commission on the budget needs to consider all options for reducing the deficit, including tax increases and cuts in spending on entitlement programs such as Social Security and Medicare. (Rich Miller, Obama Agnostic On Deficit Cuts, Wont Prejudge Tax Increases, Bloomberg, 2/11/10) President Obama Was Intrigued By [The] Elegance Of Allowing All Of The Bush Tax Cuts To Expire In Order To Cut The Deficit. In November 2009, Orszag would tout an idea that divided the economic team and inspired contempt in the political shop: extending for one or two years George W. Bushs middle class cuts, which were scheduled to expire in 2011, then letting them lapse unless Congress found a way to offset their costs. During a meeting with Obama in the Oval Office, he casually outlined the proposal. The obvious defect was that it would be likely to break the presidents campaign pledge to oppose tax increases on the middle class. Nevertheless, Obama was intrigued by its elegance as a deficit-cutting maneuver, according to two people in the room. He also liked the idea of forcing Republicans to grapple with the costs of Bushs policies. Only later did the politicos revoltthe vice president, for one, was apoplecticand the president lost interest. (Noam Scheiber, The
Escape Artists, 2012, p. 154-155)

Obama Would Block Extension Of The Reductions, Either As A Final Act In Office After Losing The November 2012 Election Or After Winning A Second Term. A White House official argued Sunday that the president had another trump card to play: the scheduled expiration of the George W. Bush tax cuts at the end of 2012. Obama would block extension of the reductions, either as a final act in office after losing the November 2012 election or after winning a second term. (Peter Wallsten
and David Nakamura, Did Obama Capitulate Or Is This A Cagey Move? The Washington Post, 7/31/11)

In 2013, Obama Will Increase Taxes By $3.6 Trillion Over The Next Ten Years And All Democrats Need To Do To Secure That Deal Is ... Nothing. But Democrats will have their turn. On Dec. 31, 2012, three weeks before the end of President Barack Obamas current term in office, the Bush tax cuts expire. Income tax rates will return to their Clinton-era levels. That amounts to a $3.6 trillion tax increase over 10 years, three or four times the $800 billion to $1.2 trillion in revenue increases that Obama and Speaker John Boehner were kicking around. And all Democrats need to do to secure that deal is...nothing. (Ezra Klein, Democrats Will Lose Now. But They Can Win Later, The Washington Post, 7/31/11) If No Debt Ceiling Deal Is Reached By December 31, Obama Plans To Allow The Bush Tax Cuts To Expire. Several White House officials I talked to made it clear that if a deal, or at least the framework for a deal, is not reached before December 31st Obama would allow all the Bush tax cuts to expirea tactic that would achieve huge deficit reduction, but in a particularly painful and ill-conceived fashion. (Ryan Lizza, The Second Term, The New Yorker, 6/18/12) 21 Democrats Disagree With Obamas Plan To Play Chicken With The Fiscal Cliff #21 - Sen. Dick Durbin (D-IL) Is Floating A Six-Month Extension Of Current Rates . Senate Majority Whip Dick Durbin of Illinois is floating a six-month extension of current 35

rates combined with budget cuts so lawmakers have time to reach a grand bargain deal early next year. (Manu Raju and Steven Sloan, Obama, Hill Dems Differ On Taxes, Politico, 9/18/12) #20 - Sen. Claire McCaskill (D-MO) Is Open To A Temporary Extension Of The Top Individual Tax Rate . Sen. Claire McCaskill of Missouri and other Democrats are open to a temporary extension of the top individual tax rate if Republicans agree to raise revenue in other parts of the Tax Code. (Manu Raju and Steven Sloan, Obama, Hill Dems Differ On Taxes, Politico,
9/18/12)

#19 Rep. Bill Pascrell (D-NJ) Isnt Ruling Out Extending The Current Rates . Some liberals, like New Jersey Rep. Bill Pascrell, arent ruling out extending the current rates if the GOP agrees to sweeteners like a patch on the alternative minimum tax or extending dozens of lapsed business tax breaks. (Manu Raju and Steven Sloan, Obama, Hill Dems Differ On
Taxes, Politico, 9/18/12)

#18 - Sen. Bill Nelson (D-FL) Along With Several Of His Colleagues, Wont Take Any Option Off The Table . And Florida Sen. Bill Nelson, along with several of his colleagues, wont take any option off the table, knowing full well that high-stakes talks over taxes could result in any number of outcomes. Ill certainly consider it, Nelson said when asked about a short-term extension of all the Bush-era rates. But Ill consider anything.
(Manu Raju and Steven Sloan, Obama, Hill Dems Differ On Taxes, Politico, 9/18/12)

#17 - Sen. Mark Pryor (D-AR) Is Among Democrats Open To A Six Month Extension. And in interviews with POLITICO, some liberals and moderate Democrats appear open to cutting a deal that includes a six-month extension of all the income tax rates so long as Congress agrees to raise revenue in other areas, such as closing certain tax deductions. In the end, were probably going to have to do something like that, Arkansas Sen. Mark Pryor said. (Manu Raju and Steven Sloan, Obama, Hill Dems Differ On Taxes, Politico, 9/18/12) #16 - Sen. Jon Tester (D-MT) Wont Rule Out A Six-Month Extension: You Never Want To Take Anything Off The Table Its Possible. Montana Sen. Jon Tester, another Democrat in a tough race, said while he prefers a year-end grand bargain and doesnt want to kick the can down the road, he wont rule out a six-month extension: You never want to take anything off the table its possible. (Manu Raju and Steven Sloan, Obama, Hill Dems Differ On Taxes,
Politico, 9/18/12)

#15 Sen. Bob Menendez (D-NJ) Disagrees With Obamas Plan To Increase Taxes. President Obama proposed today to extend the Bush tax cuts for another year for households making less than $250,000 annually. Menendez said he disagrees with the amount, thinking it should be higher. (Menendez Disagrees With Obamas $250,000 Tax Cut Cap, NJToday, 7/9/12) #14 - Rep. Jim Himes (D-CT) Disagrees With The Approach Of Simply Allowing Rates To Rise, Favoring A Comprehensive Tax Code Overhaul Instead. U.S. Rep. Jim Himes is a Democrat with many affluent constituents in Fairfield County, and as he runs for reelection, he draws about half his contributions from five wealthy towns in the district that borders New York. He said he disagrees with the approach of simply allowing rates to rise, favoring a comprehensive tax code overhaul instead. (Greg Smith, Obamas Tax Proposal Tough For
Gold Coast Rep, The Associated Press, 7/22/12)

#13 Sen. Richard Blumenthal (D-CT) Said My Preference Is To Extend Tax Cuts Because I Think That Fiscal Cliff Is So Ominous And So Potentially Destructive That We Need To Avoid It When Faced With A Choice To Extend Or Expire Tax Cuts For All. SEN. BLUMENTHAL: My preference is to extend tax cuts because I think that fiscal cliff is so ominous and so potentially destructive that we need to avoid it, but we also need to 36

address the needs for cuts in spending. (CNNs Starting Point, 7/18/12) #12 Sen. Jim Webb (D-VA) Said Thats A No When Asked Whether He Would Vote For Obamas Plan To Extend Tax Cuts Only For Those Making Under $250,000 A Year. Sen. Jim Webb (D-Va.) said Thursday hes opposed to President Barack Obamas plan to extend the Bush-era tax cuts to household income under $250,000 for one year, joining Sen. Joe Lieberman (I-Conn.) as two members of the 53-member Senate Democratic Caucus who plan to vote against the plan. Thats a no, Webb told Reuters when asked if hed vote for the plan. (Manu Raju, Webb A No On Obama Tax Plan, Politico, 7/12/12) #11 Sen. Joe Lieberman (I-CT) Disagrees With Obamas Proposal To Raise Taxes, Saying Its Not What We Need Now. Count Sen. Joe Lieberman as a no on President Barack Obamas tax plan. The Connecticut independent has just decided he will vote against the plan, saying its not what we need now, especially since it stands virtually no chance of becoming law before November. (Manu Raju and Scott Wong, Joe Lieberman To Oppose Obama Tax
Plan, Politico, 7/11/12)

#10 Former Chairman Of The Democrat National Committee And Virginia Senate Candidate Tim Kaine Disagrees With Obamas Threshold. Virginia Senate candidate Tim Kaine, the former chairman of the Democratic National Committee, prefers a $500,000 threshold. (Seung Min Kim, Manu Raju, and Scott Wong, Embattled Dems Buck President Obama On Taxes, Politico, 7/10/12) #9 Rep. Kathy Hochul (D-NY) Believes That The Tax Cuts Should Be Extended For Those Making Below $500,000 A Year. Democratic Rep. Kathy Hochul, a top GOP target in her upstate New York House race, wrote to House and Senate leaders on Monday asking for a prompt vote to permanently extend tax rates for the middle class, noting that she, like Kaine, believed it should be set at $500,000. (Seung Min Kim, Manu Raju, and Scott Wong, Embattled Dems Buck
President Obama On Taxes, Politico, 7/10/12)

#7 & 8 Democrat Senate Candidates Heidi Heitkamp (ND) And Bob Kerrey (NE) Disagree With Obamas Threshold Of $250,000. Democrat Heidi Heitkamp, the North Dakota Senate candidate, also wants to extend the tax cuts for those making less than $1 million. Former Nebraska Sen. Bob Kerrey, whos running again in his home state, believes the $250,000 limit is too low but is evaluating how specific proposals would affect the budget, his campaign spokesman said. (Seung Min Kim, Manu Raju, and Scott Wong, Embattled Dems Buck
President Obama On Taxes, Politico, 7/10/12)

#6 - Sen. Bob Casey (D-PA) Says That Congress May Have Little Choice But To Extend The Bush Tax Cuts At The End Of The Year. Congress likely will have little choice but to extend Bush-era tax cuts and delay a year-end deadline that would trigger deep, automatic spending cuts, to avoid another recession, Sen. Bob Casey Jr. said on Friday. Since public confidence in Congress took a really big, devastating hit because of the debt ceiling (arguments), youll have a lot of people investors, taxpayers, markets thatll start to get worried in September that Democrats and Republicans wont agree on how to avoid the cuts, Casey told Tribune-Review editors and reporters. (Jeremy Boren and Mike Wereschagin, Casey:
Congress Likely To Keep Tax Cuts, Spending, The Pittsburgh Tribune-Review, 6/23/12)

#5 - Member Of Obamas Fiscal Commission And Clinton OMB Director Alice Rivlin Said The Tax Increases Should Be Postponed. RIVLIN: Well, I think you have to postpone the tax increases, but with a requirement to fold it into tax reform and entitlement reform in the next session that has some teeth in it. And that wouldnt be easy to design. But if there is a sense of urgency, which we feel there ought to be, then 37

everybodys got to be committed to do that. (Alice Rivlin, Testimony Before The Senate Committee On Finance,
Washington D.C., 6/19/12)

#4 - Sen. Joe Machin (D-WV) Have Declined To Endorse Democrats Call For Repealing The Bush Tax Cuts. Democrats running for reelection, such as Sens. Jon Tester (D-Mont.) and Joe Manchin (D-W.Va.), have declined to endorse their leaderships call for a tax increase on wealthy families. (Alexander Bolton, Senate Dems Balk At Ending Bush-Era Tax Rates On Wealthy
Without A Deficit Deal, The Hill, 6/19/12)

#3 - Sen. Ben Nelson (D-NE) Is Against Raising Taxes On Any Income Brackets. Retiring Sen. Jim Webb (D-Va.) is holding fast to his position that tax rates should not be raised on any income brackets, and retiring Sen. Ben Nelson (D-Neb.) says that is his position as well, though he appears more flexible on the issue. (Alexander Bolton, Senate Dems Balk At
Ending Bush-Era Tax Rates On Wealthy Without A Deficit Deal, The Hill, 6/19/12)

#2 - Rep. Jim Matheson (D-UT) Will Vote For Temporary Extension Of All Bush Tax Cuts. U.S. Rep. Jim Matheson said Monday that he would vote for a temporary extension of the Bush-era tax cuts before they expire at years end. Im going to vote to extend them, the Utah Democrat said. In a tough economy, you want to be careful about significantly reducing spending or increasing taxes. Mathesons position puts him at odds with President Barack Obama. (Robert Gehrke, Matheson Backes Extending Bush Tax Cuts, The Salt Lake Tribune, 6/11/12) #1 - President Bill Clinton: They Will Probably Have To Put Everything Off Until Early Next Year. Thats Probably The Best Thing To Do Right Now. CLINTON: Well, I think what it means is they will have to extend they will probably have to put everything off until early next year. Thats probably the best thing to do right now. (CNBCs Closing Bell,
6/5/12)

Former President Bill Clinton Broke Sharply With President Obama Over The Bush-Era Tax Cuts Former President Bill Clinton broke sharply with President Obama over the Bush-era tax cuts, calling on Congress to renew them temporarily in the face of ongoing economic malaise. Thats probably the best thing to do right now, Clinton said Tuesday in an interview with CNBC. (Byron Tau, Clinton Breaks With Obama
Over Bush Tax Cuts, Politico, 6/5/12)

Top Democrats Have Disagreed With Obamas Definition Of Rich As They Head Into The 2012 Campaign, Democrats Are Changing Their Definition Of What It Means To Be Rich. As they head into the 2012 campaign, Democrats are changing their definition of what it means to be rich. Forget about families making $250,000 a year. Today, the party is only interested in millionaires. (Lori Montgomery, Democrats
Shift The Definition Of Rich In Battle Over Taxes, The Washington Post, 10/5/11)

Senate Democrats Rejected Obamas Tax On Incomes Over $250,000, Instead Proposing A Surtax For Incomes Over $1 Million. And on Wednesday came clear evidence of this shift: Senate Democratic leaders scrapped Obamas proposal to cover the cost of his jobs bill by raising taxes on income over $250,000 a year, the old Democratic standard for defining the wealthy. Instead, they are proposing a 5.6 percent surtax on annual income of more than $1 million. (Lori Montgomery, Democrats Shift
The Definition Of Rich In Battle Over Taxes, The Washington Post, 10/5/11)

Democrats Are Increasingly Abandoning Their Biggest Talking Point On Taxes: Families Earning More Than $250,000 A Year Are Wealthy And Should Pay More. Democrats are increasingly abandoning their biggest talking point on taxes: Families earning more than $250,000 a year are wealthy and should pay more. That figure 38

$250,000 for a household has been at the tip of the tongue of so many Democratic candidates and lawmakers in the past few elections that its become ingrained in the partys tax philosophy. (Manu Raju, Democrats: $250K Isnt Rich, Politico, 10/5/11) Democrats Have Become Increasingly Divided On The Issue. But theyve taken a beating from Republicans and have grown increasingly divided on the issue, since that income level would not only cause tax increases for some small businesses but also hit upper-middle-class suburban voters in swing states. (Manu Raju, Democrats: $250K
Isnt Rich, Politico, 10/5/11)

Rep. Nancy Pelosi (D-CA) Asked For The Bush Tax Cuts To Be Extended For Incomes Below $1 Million. Is House Democratic Leader Nancy Pelosi abandoning President Barack Obama in his effort to raise taxes on households making more than $250,000? It sure sounded that way on Wednesday. In a letter to House Speaker John Boehner, Ms. Pelosi called on Republicans to pass a permanent extension of Bush-era tax levels for the middle class. The only group Ms. Pelosi singled out for a tax increase was people earning $1 million or more. (John D. McKinnon, Pelosi Pushes Tax Hike For Those Making $1 Million Or More, The Wall Street Journal, 5/23/12) Rep. Pelosi: Democrats Believe That Tax Cuts For Those Earning Over A Million Dollars A Year Should Expire And That We Should Use The Resulting Revenues To Pay Down The Deficit. (Rep. Nancy Pelosi, Letter To Speaker John Boehner, 5/23/12)

Sen. Charles Schumer (D-NY) Does Not Support Obamas Tax On Incomes Over $250,000 Because That Is Firmly In The Middle Class And Not Rich. But the president also wanted to raise taxes on families making more than $250,000 a year by limiting income-tax deductions they can take. That didnt sit well with rank-and-file Democrats. Schumer said families that earn $250,000 or $300,000 a year arent rich enough to deserve extra taxes. He described them as firmly in the middle class. They are not rich, and in large parts of the country, that kind of income does not get you a big home or lots of vacations or anything else thats associated with wealth in America, he said. (S.A.
Miller, Million-Dollar Idea, New York Post, 10/6/11)

Sen. Schumer Said That Raising Taxes On Families Over $250,000 Fuzzies The Picture. Democrats have long argued that, in addition to cutting government spending, lawmakers should ask people at the top of the income spectrum to pay more in taxes to help tame the national debt. But setting the dividing line at $250,000, as Obama did during the 2008 campaign, fuzzies the picture, said Sen. Charles E. Schumer (D-N.Y.), the leading architect of the surtax proposal. (Lori
Montgomery, Democrats Shift The Definition Of Rich In Battle Over Taxes, The Washington Post, 10/5/12)

Sen. Schumer Said Obamas Tax Plan Would Unfairly Affect The New York Metropolitan Area. Schumer said the $250,000 limit is unacceptable since it will hit the metropolitan area disproportionately because of the high cost of living here. $250,000 makes you really rich in Mississippi but it doesnt make you rich at all in New York and there ought to be some kind of scale based on the cost of living on how much you pay, Schumer said. (Sen. Schumer Expresses Reservations About President Obamas Tax
Plan, CBS News, 9/20/11)

Even Obamas Former Top Economic Advisor, The CBO, And Mark Zandi Have Said Tax Hikes Would Negatively Affect The Economy The Washington Posts Fact Checker: The Former Head Of Obamas Council Of Economic Advisers, Christina Romer, Conducted A Study Which Clearly 39

Demonstrates That Tax Increases Have A Negative Impact On Growth. The study, which was published last year in the distingushed American Economic Review, attempts to distinguish the reasons why tax changes were implemented and then to determine how much of an impact resulted from the legislation. The study clearly demonstrates that tax increases have a negative impact on growth. (Glenn Kessler Digging Into Boehners Anti-Tax Philosophy, The
Washington Posts The Fact Checker, 5/12/11)

Fact Checker: The Romers Conclude That A Tax Increase Worth 1 Percent Of GDP Lowers Real Economic Growth By At Least 2.5 Percent Of GDP. (Glenn Kessler
Digging Into Boehners Anti-Tax Philosophy, The Washington Posts The Fact Checker, 5/12/11)

Fact Checker: Score A Point For Republicans Who Warn That Raising Taxes Will Harm The Economy. (Glenn Kessler Digging Into Boehners Anti-Tax Philosophy, The Washington Posts
The Fact Checker, 5/12/11)

CBO Director Doug Elmendorf: I Believe That More Borrowing Is Detrimental To Our Long-Term Outlook, And I Believe That Higher Marginal Tax Rates Are Also Detrimental To The Long-Term Outlook. (Committee on the Budget, U.S. House Of Representatives, Hearing
6/27/11)

Moodys Says That Raising Taxes On High Earners Could Reduce Economic Growth And Cost The Nations Almost A Million Jobs Through Mid-2012. This week, Moodys Economy.com said raising taxes on higher earners would reduce GDP by 0.4 percentage point in 2011, while payroll employment would be 770,000 lower by mid-2012. (John D.
McKinnon, When Businesses Enjoy Being Small, The Wall Street Journal, 9/18/10)

Moodys Mark Zandi Says That Raising Taxes On High Earners Could Reduce Economic Growth And Cost The Nations Almost A Million Jobs Through Mid-2012. According to Moodys Analytical model, raising taxes on higher-income households as the president has proposed would reduce real GDP by 0.4 of a percentage point in 2011 and 0.2 of a percentage point in 2012. Payroll employment would be 770,000 lower, and the unemployment rate would be almost 0.4 of a percentage point higher by mid-2012 at the peak of the impact. (Mark Zandi, The Economic Impact Of Tax Cut Proposals: A Prudent Middle Course, Moodys Analytics,
9/15/10)

And Moodys Model May Be Underestimating The Impact That Higher Taxes Would Have On The Critical Spending Habits Of High Income Households. While the recovery would be weaker because of the hikes on the wealthy, it would not come undone. But these are not most times, and the model may be underestimating the negative economic consequences of raising taxes on the wellto-do. This group panicked during the recession, spending less and saving more, and while they regained their bearings about a year ago, allowing the economy to recover, they appear very skittish. (Mark Zandi, The Economic Impact Of Tax Cut Proposals: A Prudent
Middle Course, Moodys Analytics, 9/15/10)

While Only 1 Million To 2 Million Households Will Pay Higher Taxes If The President Gets His Way, This Rarified Group Accounts For, Astoundingly, Around One-Fourth Of All U.S. Personal Outlays. It Would Not Take Much More Of A Pullback By Affluent Than Anticipated To Derail The Recovery. (Mark Zandi,
The Economic Impact Of Tax Cut Proposals: A Prudent Middle Course, Moodys Analytics, 9/15/10)

Obamas Health Care Law Enacted The Largest Tax Hike Since 1993 Obama Has Already Signed The Largest Tax Increase Since 1993. Keep in mind that Mr. Obama has already signed the largest tax increase since 1993. While everyone focuses 40

on the Bush tax rates that expire after 2012, other tax increases are already set to hit the economy thanks to the 2010 Affordable Care Act. (Editorial, Taxes Upon Taxes Upon, The Wall Street
Journal, 7/11/11)

Obama Pays For His Government Takeover Of Health Care With $820.8 Billion In Job-Killing Taxes On Small Businesses, Investments And Innovation. (Updated

Estimates For The Insurance Coverage Provisions Of The Affordable Care Act, Congressional Budget Office, 3/12; Estimated Revenue Effects Of A Proposal To Repeal Certain Tax Provisions Contained In The Affordable Care Act, Joint Committee On Taxation, 6/15/12; Payments Of Penalties For Being Uninsured Under The Affordable Care Act, Congressional Budget Office, 9/19/12)

A New Study By Accounting Firm PricewaterhouseCoopers Found That Nearly Half (47 Percent) Of Executives Surveyed Expect The New Healthcare Law To Have A Notable Financial Impact On Their Businesses.(Jay Heflin, Study:
Healthcare Reform A Financial Hit To Firms, The Hills On The Money, 10/14/10)

The Taxes In ObamaCare Could Create A Cash Flow Issue For CEOs. One issue troubling executives is adjusting to reform while trying to accommodate for the coming tax hikes included in the new law. Its possible this could create a cash flow issue as CEOs look to continue reinvesting in their business, said Ken Esch, a partner in the firms Private Company Services practice, in prepared remarks.(Jay
Heflin, Study: Healthcare Reform A Financial Hit To Firms, The Hills On The Money, 10/14/10)

Obama Has Repeatedly Called For Tax Hikes Democrats Have Rejected President Obama Has Repeatedly Resurrected The Same Rejected Tax Increases Offered When Obama Could Expect A More Friendly Reception From Congress. President Barack Obamas budget proposal resurrects a series of tax increases on certain corporations and the wealthy that were largely ignored by Congress when Democrats controlled both chambers. Many of the tax increases were in the presidents previous budget proposals, offered when Obama could expect a more friendly reception from Congress. Lawmakers from both political parties, however, have been wary of limiting the ability of high earners to deduct charitable contributions out of concern it will hurt nonprofit organizations. (Meta Pettus, Obamas Budget Resurrects Reject Tax Increases, The Associated Press, 2/14/11) Obamas Recycled Proposals Have Not Fared Well In Congress. In 2009, Obama proposed many of the same ideas to help pay for his health care legislation. But the ideas, which include limiting tax deductions to charitable contributions and increasing taxes on hedge funds and private equity groups, have not fared well in Congress, prompting opposition from key Democrats. (Jonathan Strong, Lukewarm Response
For Jobs Bill Payment Plan, Roll Call, 9/14/11)

Most Of The Measures Have Been Pitched By The Obama Administration In Some Form Or Other Since 2009, Yet None Generated Enough Support To Pass Congress Even When Democrats Controlled Both Houses. (David Kocieniewski, Tax Plan For Jobs Bill Has Familiar
Ring, The New York Times, 9/13/11)

House Democrats Wonder How The Proposals Which Went Nowhere In The 111th Congress, When Democrats Held Majorities In Both Chambers Can Attract Support Now. President Barack Obamas plans to pay for his jobs legislation are facing a cool reception from some House Democrats who wonder how the proposals which went nowhere in the 111th Congress, when Democrats held majorities in both chambers can attract support now. (Jonathan Strong, Lukewarm
Response For Jobs Bill Payment Plan, Roll Call, 9/14/11)

41

Obama Has Employed Deceptive Attacks On The Energy And Aviation Industry To Score Political Points As A Deficit Cutter FactCheck.org: Obama Recycled A Well-Worn But Misleading Democratic Talking Point When He Accused Republicans Of Favoring Tax Breaks For Oil Companies And Owners Of Private Jets At The Expense Of Cuts For Medicare Recipients. (Eugene Kely,
Brooks Jackson, Lori Robertson and DAngelo Gore, FactChecking Dueling Debt Speeches, FactCheck.org, 7/27/11)

Repealing Tax Preferences For Oil Companies And Eliminating Tax Breaks For Corporate Jets Would Equate To Only Four-Tenths Of 1 Percent Of The $9.5 Trillion In Total Deficits Projected By The Nonpartisan Congressional Budget Office Over The Same 10 Years. According to the nonpartisan Joint Committee on Taxation, repealing all the tax preferences for the oil and gas industry, as called for in Obamas fiscal 2012 budget proposal, would yield just $36 billion over the next decade. And eliminating tax breaks for corporate jets would yield only about $3 billion over the same period, according to sources quoted by Bloomberg News. Thats about four-tenths of 1 percent of the $9.5 trillion in total deficits projected by the nonpartisan Congressional Budget Office over the same 10 years. (Eugene Kely, Brooks
Jackson, Lori Robertson and DAngelo Gore, FactChecking Dueling Debt Speeches, FactCheck.org, 7/27/11)

Attacking Oil Companies And Jet-Owners Doesnt Qualify As Serious DebtCutting. So while attacking oil companies and jet-set corporate executives may have political appeal, it doesnt qualify as serious deficit-cutting. Raising the $1.2 trillion in added revenue that the president reportedly is seeking will require a lot more than that. (Eugene Kely, Brooks Jackson, Lori Robertson and DAngelo Gore, FactChecking Dueling Debt
Speeches, FactCheck.org, 7/27/11)

President Obama Used To Like Corporate Jets. President Obama used to like corporate jets. As a senator in 2005, he crisscrossed the country in them nine times to attend fund-raisers and other events, reimbursing the corporate jet owners at first-class rates. (Eric Lichtblau, Industry Set To Fight To Keep Corporate Jet Tax Breaks, The New York Times, 7/7/11) The Obama Administration Considered Taxing Vehicles By The Number Of Miles Traveled In A Quest For More Revenue, The Obama Administration Had Proposed A Car Tax On Miles Traveled. The Obama administration has floated a transportation authorization bill that would require the study and implementation of a plan to tax automobile drivers based on how many miles they drive. (Pete Kasperowicz, Obama Floats Plan To Tax Cars By The Mile, The Hills
Floor Action, 5/5/11)

The Plan Would Install Electronic Trackers On Vehicles And Charge Drivers At Filling Stations. Among other things, CBO suggested that a vehicle miles traveled (VMT) tax could be tracked by installing electronic equipment on each car to determine how many miles were driven; payment could take place electronically at filling stations. (Pete Kasperowicz, Obama Floats Plan To Tax Cars By The Mile, The Hills Floor Action, 5/5/11)

The VMT Would Be More Complicated And More Expensive To Implement Than The Current Fuel Taxes. However, collecting VMT taxes in this way would be more complicated and more expensive than the current system of collecting fuel taxes. (Alternative
Approaches To Funding Highways, Congressional Budget Office, March 2011)

The VMT Would Require Every American To Attach A Meter To Their Car. The problem is in the implementation: its hard to have a compulsory VMT tax, since that 42

involves attaching some kind of meter to every Americans car, and Americans are not going respond well to that idea. Hell, even New York cabbies went on strike to protest GPS devices being put in their vehicles to track their every movement. (Felix Salmon, The Problems With A
Nationwide VMT Tax, Reuters, 2/11/10)

There Really Is Something Quite Creepily Big Brotherish About Trying To Track Every Single Vehicle In America. (Felix Salmon, The Problems With A Nationwide VMT Tax,
Reuters, 2/11/10)

Obamas Proposal To Raise Taxes On Carried Interest Would Stifle Innovation CBO: Taxing Carried Interest As Ordinary Income Would Treat Investment Managers Differently Than Other Entrepreneurs. Furthermore, this option would treat the income of partners who provide investment management services differently from that earned by entrepreneurs who start a new business, contribute both labor services and capital, and then sell the business. Profits from such sales generally are taxed as capital gains, even though some of those profits represent a direct return on specific labor services provided by the owners. (Reducing The Deficit: Spending And Revenue Options, Congressional Budget Office, 3/10/11) CBO: It Would Reduce The Incentive To Undertake Risky Investments That Can Lead To Innovation, New Products, And More-Efficient Markets And Businesses. Another argument against such a policy change is that, if at least a portion of carried interest is presumed to be a return on the general partners investment, it would reduce the incentive for general partners to undertake risky investments that can lead to innovation, new products, and more-efficient markets and businesses. (Reducing The Deficit: Spending And Revenue
Options, Congressional Budget Office, 3/10/11)

The CBO Estimates That Treating Carried Interest As Ordinary Income Would Only Raise $21.4 Billion Over 10 Years. (Reducing The Deficit: Spending And Revenue Options,
Congressional Budget Office, 3/10/11)

Mike Nicholas, Chief Executive Of The Bond Dealers Of America: The Burden Is Ultimately Going To End Up Hitting The Taxpayers. The presidents new plan was also criticized by securities brokers, who warned that restricting tax deductions for municipal bond earnings would rattle an already shaky market. Its going to mean higher borrowing costs for local governments, state governments, said Mike Nicholas, chief executive of the Bond Dealers of America. And the burden is ultimately going to end up hitting the taxpayers. (David Kocieniewski, Tax Plan For Jobs Bill Has Familiar Ring, The New York Times, 9/13/11) Obama Has Repeatedly Called For Limiting Deductions For Charitable Contributions Despite Widespread Resistance In His Party President Obama Proposed Raising Money For His Second Stimulus By Eliminating Deductions On Charitable Donations. Jack Lew, the director of the White House Office of Management and Budget, said the bulk of the plan - $400 billion over 10 years would be raised by limiting the itemized deductions, such as those for charitable contributions and other expenditures, that may be taken by individuals making more than $200,000 a year and families making over $250,000 a year. (Helene Cooper, White House Would Cut Deductions To pay
For Its Jobs Plan, The New York Times, 9/12/11)

Obamas 2009 Proposal To Limit Deductions For Charitable Giving Was Pretty Close To Dead-On-Arrival. To pay for half of his $634 billion health reform fund, President Barack Obama has proposed limiting itemized tax deductions from mortgage interest to charitable deductions for wealthier Americans starting in 2011. The plan may not be 43

dead-on-arrival but it is pretty close. In my reporting across Capitol Hill today, I couldnt find any strong support for the plan. And its strongly opposed by several key Democrats on the key Senate Finance Committee, including chairman Sen. Max Baucus, D-Mont. (George
Stephanopoulos, Obama Tax Deduction Plan DOA? ABC News Georges Bottom Line, 3/5/09)

Senator Kent Conrad (D-ND): Senators Dont Want To Do Anything That Would Discourage Charitable Contributions At A Time Charity Is So Critically Important To People. MSNBCS PAT BUCHANAN: One way Obamas going to raise taxes slightly and thats reduce the deductibility of charitable contributions and also your interest on mortgages. Is that going to happen, Senator, or is that dead? SEN. CONRAD: Its hard to say. Ive heard from a lot of colleagues that theyre concerned about that. They certainly want dont want to do anything that would discourage charitable contributions at a time charity is so critically important to people. (MSNBCs Morning Joe, 3/16/09) Senate Finance Chairman Max Baucus (D-MT): Im Wondering About The Viability Of That Provision. Sen. Max Baucus (D., Mont.), the Senates top tax writer as chairman of the Finance Committee, told Mr. Geithner he was especially concerned about paying for expanded health coverage with a deductions curb that has nothing to do with health care. He added: Im wondering about the viability of that provision. (John D. McKinnon and Martin Vaughan, White House Rethinks Tax Hikes, The Wall Street Journal,
3/5/09)

Senator Bob Menendez (D-NJ): I Dont Want To Prejudge Anything, But It Is Certainly One That I Am Having Difficulties With. (Stephen Ohlemacher, Key Democrats
Oppose Obamas Tax Deduction Plan, The Associated Press, 3/5/09)

President Obama Has Proposed A Trillion Dollar Social Security Tax Hike Obama Said He Favored Lifting The Social Security Cap Because That Would Do A Significant Amount To Stabilize The System. OBAMA: For example -- Ill just give you one example of a change that would make a difference in Social Security. Right now you only pay a Social Security tax up to a certain point of your income. So a little bit over $100,000, your Social Security -- you dont pay Social Security tax. Now, how many people are making less than $100,000 a year? Dont be bashful. The point is, for the vast majority of Americans, every dime you earn, youre paying some in Social Security. But for Warren Buffett, he stops paying at a little bit over $100,000 and then the next $50 billion hes not paying a dime in Social Security taxes. So if we just made a little bit of an adjustment in terms of the cap on Social Security, that would do a significant amount to stabilize the system. And thats just an example of the kinds of changes that we can make. (Barack Obama,
Remarks At Northern Virginia Community College, Annandale, VA, 4/19/11)

Then-Sen. Clinton Criticized Obamas Plan For Higher Taxes As A Trillion Dollar Tax Increase. CLINTON: If you lift the cap completely, that is a one trillion dollar tax increase. (Sen. Hillary Clinton, CNN Democrat Presidential Candidates Debate, Las Vegas, NV, 11/15/07) Click To Watch Then-Sen. Hillary Clinton Criticize Obamas Trillion Dollar Tax Hike

Rather Than Getting Serious About Reducing Spending, Obama Proposed The Buffett Rule Which Raises Very Little But Excites His Base The Buffett Rule Will Only Yield $46.7 Billion Over 11 Years, A Miniscule Percentage. Congress official tax analysts say President Barack Obamas proposed 44

Buffett rule on taxing people earning over $1 million a year would yield $31 billion over the next 11 years. That would be a minuscule percentage of the federal budget deficits projected during that period, which are expected to exceed $7 trillion. (Report: Just $31b From
Buffett Rule Tax On Rich, The Associated Press, 3/20/12)

The Buffett Rule Will Make The Deficit Worse. The case for the Buffett tax keeps eroding. When President Obama announced the idea, he said it would help stabilize our debt and deficits over the next decade. Then came the inconvenient revelation that the new 30% millionaires tax would raise only $46.7 billion over 10 years, and would leave about 99.5% of the deficit intact in 2013. It was a far cry from stabilizing the debt. Now we learn that the Buffett tax the Senate is expected to vote on early next week will make the deficit worse. (Editorial, The Buffett Tax Loss, The Wall Street Journal, 4/13/12) The Buffett Rule Would Tax Thousands Of Companies, Hampering Their Ability To Create Jobs. The Buffett rule would apply to individual income tax rates. It would not apply to the taxes that corporations pay, although Obama has separately proposed to increase taxes on some corporations including some that do work abroad. Yet the proposal would still affect thousands of companies, from the local bakery to hugely profitable law firms, whose owners pay individual income taxes on the earnings, not corporate taxes. Republicans say taxing these companies would snatch away money they could otherwise use to create jobs - a damaging move with the economy still laboring to recover from the recession. (Alan Fram, Obamas Buffett Rule Impact On Taxes, Jobs, The Associated Press, 4/16/12) Los Angeles Times: The Proposed Buffett Rule Is More A Political Statement Than A Deficit-Reduction Tool, Given How Little Money It Would Raise. The proposed Buffett rule is more a political statement than a deficit-reduction tool, given how little money it may raise. In that sense, its like Obamas oft-repeated call to eliminate tax breaks for corporate jets. (Editorial, The Buffett Rule, And More, Los Angeles Times, 9/20/11) ABC News: How Many Millionaires And Billionaires Pay Lower Tax Rates Than Middle-Income Families? The Answer Appears To Be This: Not Many. (Jonathan Karl, Fact
Check: The Rich, Their Secretaries And Taxes, ABC News, 9/20/11)

ABC News: For The Most Part, The Wealthy Pay A Significantly Higher Percentage Of Their Income In Taxes Than Middle-Income Workers. The nonpartisan Tax Policy Center has crunched the numbers and found that Warren Buffett and his secretary are the exception to the rule. For the most part, the wealthy pay a significantly higher percentage of their income in taxes than middleincome workers. The key numbers: this year those earning over $1 million will pay, on average, 29.1 percent on federal taxes. Those earning between $50,000 and $75,000 will pay 15 percent. (Jonathan Karl, Fact Check: The Rich, Their Secretaries And Taxes, ABC News,
9/20/11)

The Buffett Rule, That Political Gambit, Was Punctured With Holes In One Fell Swoop. There goes the Buffett rule. Remember that political gambit, in which billionaire Warren Buffett pretended he was going to pay a much higher tax bill and President Obama pretended that raising rates on millionaires would make a dent in his hemorrhaging budget deficits? In one fell swoop Wednesday, Congresss tax scorekeeper punctured both phony claims. The analysis from the Joint Committee on Taxation also showed less wealthy taxpayers why the Buffett ruse would eventually end up exposing them to higher taxes.
(Editorial, The Bottom 0.1%, The Wall Street Journal, 3/21/12)

45

This Year, The Buffett Rule Would Increase Federal Revenues By All Of $1.1 Billion. Thats Less Than One-Tenth Of One Percent Of The $1.2 Trillion Budget Deficit Mr. Obama Is Scheduled To Run This Year. Senator Sheldon Whitehouse (D., R.I.) quickly drafted legislation to turn this re-election posturing into law. Joint Tax dutifully studied the bill and has delivered the official score: This year, the Buffett rule would increase federal revenues by all of $1.1 billion. Thats less than one-tenth of one percent of the $1.2 trillion budget deficit Mr. Obama is scheduled to run this year. Through 2022 Joint Tax expects less than $47 billion in total new revenues from the Buffett rule while the government will be adding trillions of dollars to the national debt. Joint Tax even concedes, as it is rarely wont to do, that the rule will affect taxpayer behavior: By raising the effective tax rate on capital gains, the rule will encourage people to realize fewer capital gains. (Editorial,
The Bottom 0.1%, The Wall Street Journal, 3/21/12)

Obamas Plans To Tax The Domestic Energy Industry Have Run Into Opposition From His Own Party Sen. Mary Landrieu (D-LA) In 2012: Wrong-Headed Approach That Pits Sectors Of The Energy Industry Against One Another In An Effort To Assign Blame For High Gas Prices. LANDRIEU: The bill from Sen. Menendez is a wrong-headed approach that pits sectors of the energy industry against one another in an effort to assign blame for high gas prices, instead of promoting the all of the above energy strategy our country needs. I support alternative renewable energy, but the advance of this sector cannot come at the expense of the oil and gas industry that powers our nation and supports more than 9 million jobs in the United States and more than 375,000 in Louisiana. (Bruce Alpert, Senate To Vote
On Bill To Eliminate Oil And Gas Tax Breaks, The Times-Picayune, 3/26/12)

Sen. Landrieu In 2011: I Have Said For Months That I Am Not Supporting A Repeal Of Tax Cuts For The Oil Industry Unless There Are Other Industries That Contribute. Some are unhappy about the specific types of companies, particularly the oil industry, that would lose tax benefits. I have said for months that I am not supporting a repeal of tax cuts for the oil industry unless there are other industries that contribute, said Senator Mary L. Landrieu of Louisiana. (Jennifer
Steinhauer, Some Democrats Are Balking At Obamas Jobs Bill, The New York Times, 9/14/11)

Sen. Landrieu Said That The Democrats Attempt To Raise Energy Taxes Will Not Reduce Gasoline Prices One Penny. LANDRIEU: But I would just like to add my strong voice to urging my colleagues to read this bill, to look at it, and understand the inherent unfairness in it, the lack of significant deficit reduction, and the fact that it will not, although it is being touted as, it will not reduce gasoline prices by one penny. (Sen. Mary Landrieu, Remarks On The U.S. Senate Floor, Washington D.C., 5/11/11) Sen. Landrieu: That Offset Is Not Going To Fly, And He Should Know That. That offset is not going to fly, and he should know that, said Democratic Sen. Mary Landrieu from the energy-producing Louisiana, referring to Obamas elimination of oil and gas subsidies. (Manu Raju, Hill Dems Pick Apart Obama Jobs Plan, Politico, 9/14/11) Sen. Landrieu: Maybe Its Just For His Election, Which I Hope Isnt The Case.
(Manu Raju, Hill Dems Pick Apart Obama Jobs Plan, Politico, 9/14/11)

Sen. Mark Begich (D-AK) In 2012: We Should Get On To Real Energy Legislation And Not These Political Games Of Going Back And Forth Over Legislation That Everyone Knows Is Not Going To Pass. Begich said in an interview, as the measure was debated 46

on the Senate floor, that the bill is nothing but a political stunt by his fellow Democrats to dump on the oil companies at a time of high gasoline prices. If were going to do tax reform then everybody has to be at the table, not just selected groups because it polls well and you can beat up on them, Begich said. Begich said the Senate Democratic majority should get on to real energy legislation and not these political games of going back and forth over legislation that everyone knows is not going to pass. (Sean Cockerham, Alaska Sen. Begich Breaks With
Democrats, Obama On Oil Tax Breaks, McClatchy Newspapers, 3/28/12)

Sen. Begich Opposed Repealing Domestic Energy Incentives And Called On Fellow Democrats To Stop The Headline Grabbing And Get Serious About Energy Security. BEGICH: Sadly, some of my colleagues in this body are not much better. Instead of addressing the problem with specific solutions, they are going for headlines by dragging energy company executives before committees or proposing that roadblock incentives for increased domestic energy production, some of which have been on the books for decade. Lets stop the headline grabbing and get serious about the energy security. (Sen. Mark Begich, Remarks On The U.S. Senate Floor, Washington D.C., 5/11/11) Sen. Begich (D-AK) Said It Was Frustrating To See The President Single Out The Oil Industry Democratic Sen. Mark Begich, from the oil-rich state of Alaska, said it was frustrating to see the president single out the oil industry after calling on the congressional supercommittee in last weeks address to Congress to find savings. When you start singling out certain industries, theres an unfairness to it, he said in an interview. On the pay-fors, I have a problem. (Manu Raju, Hill Dems Pick Apart
Obama Jobs Plan, Politico, 9/14/11)

Sen. Ben Nelson (D-NE) Also Voted Against The Bill In A Procedural Measure. Ben Nelson of Nebraska and Mary Landrieu of Louisiana were the only other Democrats to break with their party on the bill by Sen. Robert Menendez, D-NJ. (Sean Cockerham, Alaska Sen. Begich
Breaks With Democrats, Obama On Oil Tax Breaks, McClatchy Newspapers, 3/28/12)

Rep. Dan Boren (D-OK) Warned President Obama That Repealing Domestic Energy Incentives Will Kill Jobs And Reduce Energy Production. BOREN: We lose thousands of jobs not only in Oklahoma, Texas, Louisiana, Arkansas, and places like Pennsylvania, New York, West Virginia. These arent just traditional oil and gas producing states. And these tax breaks do not go to the big, major oil companies. They go to small independent companies, like we have in Oklahoma. (Fox News, Your World With Cavuto, 4/27/11) Boren: Did you know a vast majority of the production in the United States comes from small independent oil and gas companies? And the new rigs that are drilling right now in the United States, they are not Exxon Mobils of the world. They are the Devons, the Chesapeakes and even smaller companies that are based in Oklahoma that are employing, by the way, a lot of Democrats, blue-collar jobs. And the president needs to understand that. (Fox News, Your World With Cavuto, 4/27/11) Obama Has Proposed Taxing Health Care Benefits A Little-Noticed Provision In President Obamas New Jobs Bill Seeks To Tax Healthcare Benefits For The Wealthy. A little-noticed provision in President Obamas new jobs bill seeks to tax healthcare benefits for the wealthy, a controversial idea that went nowhere during the healthcare reform debate. The administration failed to convince the Democratic-controlled Congress last year to endorse limiting itemized deductions to 28 percent for individuals making more than $200,000 a year. (Julian Pecquet, Obama Jobs Bill Would Raise
Revenue By Taxing Health Benefits For Wealthy, The Hills Healthwatch, 9/13/11)

47

Obamas Proposal To Tax Health Benefits Is Stirring Opposition From Congressional Democrats Who Fought A Similar Proposal In 2010. President Barack Obama is asking lawmakers to tax the health insurance benefits of top earners, stirring opposition from congressional Democrats who fought a similar proposal in the 2010 health-care law. The proposal, tucked deep inside the 155-page jobs legislation Obama submitted to Congress on Sept. 12, would make plans provided by employers partially taxable for couples earning more than $250,000 a year and individuals earning more than $200,000. (Steven Sloan and
Kathless Hunter, Obama Plan To Tax Health Benefits Stirs Democratic Opposition, Bloomberg, 9/14/11)

Rep. Bill Pascrell (D-NJ): I Didnt Support Taxing Health-Care Plans When We Debated The Health-Care Bill If It Was Up Today, I Wouldnt Vote For It.
(Steven Sloan and Kathless Hunter, Obama Plan To Tax Health Benefits Stirs Democratic Opposition, Bloomberg, 9/14/11)

Sen. Barbara Mikulski (D-MD): I Disagree With The President. Senator Barbara Mikulski, a Maryland Democrat whose state includes some of the wealthiest counties in the U.S., said she didnt support the health-care tax. I disagree with the president, she said. The proposal, she said, would be problematic for people with fluctuating incomes. Some of her constituents might make one year $300,000 and the next year $30,000, she said. (Steven Sloan and Kathless Hunter, Obama Plan To Tax Health Benefits Stirs
Democratic Opposition, Bloomberg, 9/14/11)

Rep. Rob Andrews (D-NJ): Raising Taxes On Health Benefits Is One Of The Least Objectionable Among A Bunch Of Bad Ideas. (Steven Sloan and Kathless Hunter, Obama
Plan To Tax Health Benefits Stirs Democratic Opposition, Bloomberg, 9/14/11)

Obama Broke His Promise To Simplify The Tax Code PROMISE: Obama Promised To Simplify The Tax Code So That Millions Of Americans Will Be Able To Do Their Taxes In Less Than 5 Minutes. Barack Obama will dramatically simplify tax filings so that millions of Americans will be able to do their taxes in less than 5 minutes. Currently, the IRS receives Americans financial information directly from employers and banks. Obama will ensure that the IRS uses this information to give taxpayers the option of a pre-filled tax forms to verify, sign and return to the IRS or online. This will eliminate the need for Americans to hire expensive tax preparers and to gather information that the federal government already has on file. (Barack Obamas Economic Agenda, Obama
For America, 2008)

BROKEN: According To The World Bank Group/PricewaterhouseCoopers Annual Paying Taxes Study, Since Obama Took Office, The United States Has Fallen From 46th To 69th In The Ease Of Paying Taxes Among 183 Nations. (Paying Taxes: 2009,
PricewaterhouseCooper, Accessed 4/12/12; Paying Taxes: 2009, PricewaterhouseCooper, Accessed 10/30/12)

Taxpayers Will Spend On Average 19 Hours Filing Their Taxes With Form 1040. When accounting for all taxpayers from those who file the simplest 1040EZ to those filing the long Form 1040 and its many associated schedules the average compliance time is 19 hours, up from 17.3 hours last year. However, most of the change is due to a refinement of the methodology for measuring the paperwork burden. Out-of-pocket costs per individual taxpayer (again, using any of the 1040 series) are expected to average $250, up 10 percent. It is important to remember that such costs include taxpayers who do their own taxes as well as those who go to paid preparers. (David Keating, A Taxing Trend,: The Rise In Complexity, Forms, And Paperwork Burdens, National
Taxpayer Union, 4/18/11)

48

Obama Broke His Promise To Eliminate Income Taxes For Seniors Making Less Than $50,000 A Year PROMISE: Sen. Obama Promised To Eliminate Income Taxes For Seniors Making Less Than $250,000 A Year. Barack Obama will eliminate all income taxation of seniors making less than $50,000 per year. This will eliminate taxes for 7 million seniors saving them an average of $1,400 a year-- and will also mean that 27 million seniors will not need to file an income tax return at all. (Barack Obamas Comprehensive Tax Plan, Obama For America, 2008) BROKEN: Politifact: Seniors Making Under $50,000 A Year Are Still Required To Pay Income Taxes, Politifact Rates This Promise Broken. President Barack Obamas campaign pledge to end taxes for seniors making less than $50,000 has fallen off the radar. It wasnt part of the tax cuts in the economic stimulus bill, also known as the American Recovery and Reinvestment Act. It wasnt in Obamas first budget outline, which was approved by Congress on April 2, 2009. And its not part of any proposed legislation that we can find. (Angie Drobnic Holan, No Proposal To End Taxes For Seniors Making Less Than $50,000, Politifact, 4/15/09) As Of April 1st, America Has The Highest Corporate Tax Rate In The World. April 1 is a date that every politician and business executive in America should circle on the calendar. Thats when Japan cuts its corporate tax rate to 36.8% from 39.5%. The United States will then hold the title of highest corporate tax rate, with average combined federal and state profit levies of 39.2%. Yes, thats higher than Sweden. Higher than Russia. And China, Mexico, Denmark and even France. Doesnt it make you want to break out in a chant: U-S-A, U-S-A? (Editorial, The U.S. Is Number One, The Wall Street Journal, 3/15/12)

UNDER OBAMA, THE UNITED STATES CORPORATE TAX RATE BECAME THE HIGHEST IN THE DEVELOPED WORLD
Obamas Corporate Tax Plan Will Raise Taxes CNBCs Eamon Javers Says Obamas Corporate Tax Plan Would Raise $250 Billion In New Revenue. JAVERS: This plan would reportedly raise about $250 billion in new revenue over ten years. But exactly whose ox is getting gored here isnt exactly clear until we see the details of which loop holes theyre going to close. Were expecting that news or some piece of it from Treasury Secretary Tim Geithner who is going to be briefing reporters over at the Treasury building in about half an hour. (CNBCs Squawk On The Street, 2/22/12) Obama Rolled Out His Corporate Tax Plan In An Off-Camera Briefing, Despite Talking About It For Years Obamas Corporate Tax Reform Plan Has Been In The Works At Treasury For Two Years. The administration plan to revamp a corporate code that is widely derided as inefficient and anticompetitive has been in the works at Treasury for two years, and is a priority of Mr. Geithner. Yet he has been preoccupied with crisis management, and is unlikely to see the project through since he plans to leave office after this year. (Jackie Calmes,
Obama Offers To Cut Corporate Tax Rate To 28%, The New York Times, 2/22/12)

Obama Attacked The Corporate Tax Code In His State Of The Union Address Last Year. The administration has been working on a corporate tax overhaul for more than a year. In his 2011 State of the Union address, President Barack Obama blamed a parade of lobbyists for the complex tax code that leaves companies with 49

disparate tax rates. (Richard Rubin and Julianna Goldman, Obama Administration Said Set To Release Corporate
Tax-Rate Plan Tomorrow, Bloomberg, 2/21/12)

By Leaving Corporate Tax Reform To Treasury, Obama Is Signaling That Its A Lower Priority. While Obama has been promoting various aspects of his economic agenda in personal appearances and speeches, the decision to leave the corporate tax plan to the Treasury Department to unveil signaled its lower priority. Whats more, the administrations framework leaves much for Congress to decide a deliberate move by the administration to encourage negotiations but which also doesnt subject the plan to detailed scrutiny. (Jim Kuhnehenn, AP Source: Obama Seeks 28 Percent Corp. Tax Rate, The Associated Press, 2/22/12) Obamas Corporate Tax Plan Includes A Global Minimum Tax Which Would Stifle American Competitiveness The Obama Administration Has Proposed A Global Minimum Tax But They Wont Say How High It Will Be. But then, in the third section, the White House will follow up on an innovative idea they included in the State of the Union and propose a global minimum tax. Theyll say more about how such a tax will work, but they wont say how high such a tax should be. Thats left up to Congress. (Ezra Klein, Wonkbook: Tax Reform Is Really, Really Hard, The Washington
Post, 2/22/12)

The Global Minimum Tax Means That Instead Of A Carrot, Corporate America Gets The Stick. So instead of a carrot, Corporate America gets the stick. Instead of lowering the U.S. rate to a competitive level, Obama would raise the penalty on keeping profits overseas. Indeed, the United States is a huge outlier in that it taxes the foreign profits of multinational companies. (Jim Pethokoukis, Why Obamas
Corporate Tax Plan Is A Total Bust, The American, 2/22/12)

The Global Minimum Tax Would Give Foreign Companies Doing Business In The U.S. A Tax Cut While U.S. Businesses Abroad Would Get A Tax Hike. Thus the plan would increase taxes on U.S. multinational companies as a means of paying for the lower corporate tax rate which will largely benefit domestic companies. On that note, it seems very unfair that foreign companies doing business in this country would get a 20 percent tax cut but U.S. companies doing business abroad would get a tax increase. How does that help U.S. competitiveness? (Scott A. Hodge, Thoughts On President Obamas Corporate Tax Plan, Tax Foundation,
2/23/12)

The Administrations Proposed Global Minimum Tax Is A Bit Like Neiman Marcus Declaring Itself The Last Stop Against The Growth Of Discount Retailers Such As Target, Walmart And, Now J.C. Penny. (Scott A. Hodge, Thoughts On
President Obamas Corporate Tax Plan, Tax Foundation, 2/23/12)

Business Roundtable: Obamas Corporate Tax Framework Would Still Leave The U.S. Combined Corporate Rate 8 Percentage Points Higher Than The Average Of Countries In The Organization For Economic Cooperation And Development. Despite the Presidents proposal to cut corporate rates to 28 percent, the framework would still leave the U.S. combined corporate rate 8 percentage points higher than the average of countries in the Organization for Economic Cooperation and Development. The result would keep the United States at a significant disadvantage with its major competitors, Engler said. (Press Release, BRT: Its Official: President Embraces Lower Corporate Tax Rate But Revenue
Neutrality, Competitive Territorial System Missing, Business Roundtable, 2/22/12)

Business Roundtable On Obamas Global Minimum Tax: No Other Developed Country Imposes Such A Minimum Tax On The Foreign Earnings Of Their 50

Corporations. The framework described by U.S. Treasury Secretary Tim Geithner today outlines a series of significant tax increases on companies with worldwide operations most notably a minimum tax on foreign income. No other developed country imposes such a minimum tax on the foreign earnings of their corporations. (Press Release, BRT: Its Official: President Embraces Lower Corporate Tax Rate But Revenue
Neutrality, Competitive Territorial System Missing, Business Roundtable, 2/22/12)

Obamas Plan Will Be Short On Details But Heavy On Election Year Rhetoric Obamas Corporate Tax Framework Has Little Chance Of Passing But It Is Central To His Re-Election Strategy. Chances of accomplishing such change in the tax system are slim in a year dominated mostly with presidential and congressional elections. But for Obama, the proposal is part of a larger tax plan that is central to his re-election strategy.
(Jim Kuhnehenn, AP Source: Obama Seeks 28 Percent Corp. Tax Rate, The Associated Press, 2/22/12)

Obama Will Propose Lowering The Corporate Tax Rate But Wont Say Exactly How To Do All That. Later today, the White House will unveil its framework for overhauling the corporate tax code. They will propose bringing the corporate rate down to 28 percent, establishing a global minimum tax, and expanding the credits for R&D and manufacturing. But they wont say exactly how to do all that. (Ezra Klein, Wonkbook: Tax Reform Is Really, Really Hard, The
Washington Post, 2/22/12)

Their Main Point, In A Sense, Is That Its Not All About Breaks For Jets And Oil Companies, No Matter How Often Those Feature In The Presidents Speeches. Put differently, getting the rate down to 28 percent requires making hard decisions about legitimate, fundamental features of the corporate tax code -- decisions that the White House will clarify, but not specifically make. Their main point, in a sense, is that its not all about breaks for jets and oil companies, no matter how often those feature in the presidents speeches. (Ezra Klein, Wonkbook: Tax Reform Is Really, Really Hard, The
Washington Post, 2/22/12)

The White House Is Making Two, Somewhat Contradictory Points, That We Should Lower The Corporate Tax Rate But Are Not Sure How To Do It. In a sense, this document is making two, somewhat contradictory, points simultaneously: Yes, we should reform the corporate tax code. That piece of conventional wisdom is true. But no, its not obvious how we should to do it, and it wont be easy. (Ezra Klein, Wonkbook: Tax Reform Is Really, Really
Hard, The Washington Post, 2/22/12)

Obama Is Demagoguing The Territorial Tax System His Administration Supported During Debt Ceiling Negotiations In 2011, The Administration Had Tentatively Stated That Corporations Would Only Be Taxed On Domestic Income And Not From Overseas Income. When the discussion turned to corporate tax reform, Boehner and Cantor thought they were onto something positive. The administration had tentatively everything was tentative, it seemed stated that corporations would only be taxed on domestic income and not from overseas income. This was a giant issue for companies like Apple, Microsoft and Google, any that operated abroad. Called a territorial corporate tax system, the business community would be overjoyed if it was adopted in an overhaul of corporate taxes. Not having to pay the U.S. corporate rate of 35 percent on overseas income would be a bonanza for corporate America. (Bob Woodward, The Price Of Politics, 2012, p. 242) Treasury Secretary Geithner Said The Goal Is Territorial. The goal is territorial, Geithner said, starting to pull back. Im not sure we can commit to completely territorial. Maybe 95 or 96 percent. He added pointedly, We are 51

prepared to move off decades of Democratic orthodoxies. Treasury had been working on a corporate tax reform plan for some time. Decisions had been expected earlier in the year. Where are you? They asked. Well, Geithner said, were still working. But complete territorial we may not be able to get. But were going to get close, and we can work with you on that. (Bob Woodward, The Price Of Politics, 2012, p. 242) Obamas Own Fiscal Commission, Simpson-Bowles, Advocated That The U.S. Adopt A Territorial Tax System. The U.S. is one of the only industrialized countries with a hybrid system of taxing active foreign-source income. The current system puts U.S. corporations at a competitive disadvantage against their foreign competitors. A territorial tax system should be adopted to help put the U.S. system in line with other countries, leveling the playing field. (Report Of The National Commission On Fiscal Responsibility And Reform, The White House, 12/1/10) The Chairman Of Obamas Export Council, Boeing CEO Jim McNerney, Voiced Support For Territorial Taxation On Behalf Of The Private Sector Members Of The Council. A competitive territorial tax system for the United States should broadly follow the practice of our trading partners and should not be designed to raise new revenue, or to destabilize the U.S. corporate tax base, but rather to make the US tax system more competitive with its major trading partners. (Jim McNerney, Letter To The President Of The United States Of America, 12/9/10) In Their 2011 Year-End Report, Many Members Of Obamas Council On Jobs And Competitiveness Agreed That The United States Should Move To A Territorial System Of Taxing Corporate Income Akin To The Practices Of The Other Developed Economies. Many members of the Council agreed that the United States should move to a territorial system of taxing corporate income akin to the practices of the other developed economies. Territoriality would eliminate the so-called lock-out effect in the current worldwide system of taxation that discourages repatriation and investment of the foreign earnings of U.S. companies in the United States. (2011 Year-End Report: Road Map To Renewal,
The Presidents Council On Jobs And Competitiveness, 1/12)

The Proposal Put Forward By The Gang Of Six, Which Includes Sen. Kent Conrad (DND), Sen. Dick Durbin (D-IL) And Sen. Mark Warner (D-VA), Includes A Shift To A Territorial Tax System. The Finance Committee would be instructed to deliver real deficit savings through simplifying the tax code and raise as much as $1 trillion. It would do this by establishing three tax brackets with rates of 8-12 percent, 14-22 percent and 2329 percent. It would permanently repeal the $1.7 trillion Alternative Minimum Tax. And it calls for establishing a single corporate tax rate, between 23 percent and 29 percent, and to move to a competitive territorial tax system. (Manu Raju, Gang Of Six Back From The Brink, Politico, 7/19/11) 14 Democrat Senators Wrote A Letter To President Obama Urging Action On The Fiscal Commissions Recommendations, Including Territorial Corporate Tax Reform. The 14 senators hailed the commissions recommendations on Social Security, healthcare, and tax reforms three cornerstones of the plan on which support for a plan could hinge. The signatories were Sens. Mark Warner (D-Va.), Evan Bayh (D-Ind.), Mark Begich (DAlaska), Michael Bennet (D-Colo,), Tom Carper (D-Del.), Dianne Feinstein (D-Calif.), Kay Hagan (D-N.C.), Amy Klobuchar (D-Minn.), Mary Landrieu (D-La.), Joe Lieberman (I-Conn.), Claire McCaskill (D-Mo.), Jeanne Shaheen (D-N.H.), Jon Tester (D-Mont.) and Mark Udall (DColo.). (Michael OBrien, 14 Dems Want Deficit Aaction Despite Failed Fiscal Commission Vote, The Hill, 12/3/10) Text of Letter 52

Bidens Former Economic Adviser Jared Bernstein Has Advocated For A Tough Version Of Territorial Taxation. Some of this is the business community saying we really want corporate tax reform and you show them corporate tax reform and they say yuck, said Jared Bernstein, who was vice president Joe Bidens economic adviser until last April. Bernstein has advocated a tough territorial approach in which you exempt some foreign earnings would be exempt from domestic taxation. (Kim Dixon, Obama In Bind Over Tax Reform
Ex Aide, Reuters, 1/30/12)

Sen. Ron Wyden (D-OR) On Territorial Tax Reform: I Continue To Be Open To It. WYDEN: And much again of the more complicated approaches are going to be hard to do. Senator Gregg and I -- Ill wrap up with this Mr. Chairman, Senator Gregg and I probably spent a gazillion, gatrillion hours, barely an exaggeration -- looking at this territorial issue. And I continue to be open to it. (Committee On The Budget, U.S. Senate, Hearing, 9/15/11)

53

APPENDIX: OBAMA ENTITLEMENTS TRACKER

Then-Sen. Obama Attacked President Bush for Not Tackling Medicare. OBAMA: The only thing Id add, and then Ill turn it over to Dick is to talk, is to mention that despite the President staking his domestic policy agenda in his second term on Social Security reform, the real crisis in terms of funding is not Social Security, its Medicare. Which is breaking down rapidly and this most recent legislation exacerbates that fiscal crisis. And thats something for some reason the president seems entirely unwilling to tackle. (Senator Barack
Obama, Remarks At An Illinois Weekly Policy Update, Washington, D.C., 2/10/05)

VIDEO: Obama in 2005 Attacks Bush For Not Tackling Medicare

From Obamas The Audacity Of Hope: [T]he Two Main Government-Funded HealthCare Programs Medicare And Medicaid Really Are Broken As vital as it may be to raise the wages of American workers and improve their retirement security, perhaps our most pressing task is to fix our broken health-care system. Unlike Social Security, the two main government-funded health-care programs Medicare and Medicaid really are broken; without any changes, by 2050 these two entitlements, along with Social Security, could grow to consume as large a share of our national economy as the entire federal budget does today. The addition of a hugely expensive prescription drug benefit that provides limited coverage and does nothing to control the cost of drugs has only made the problem worse. And the private system has evolved into a patchwork of inefficient bureaucracies, endless paperwork, overburdened providers, and dissatisfied patients.
(Barack Obama, The Audacity Of Hope, 2006, p.183)

VIDEO: Obama In 2006 Book: Medicare And Medicaid Really Are Broken

Biden Cited Medicare As A Gorilla And Said We Have To Put All Of It On The Table In Terms Of Reform. BIDEN: Social Security is not the hard one to solve. Medicare -- that is the gorilla in the room, and youve got to put all of it on the table. RUSSERT: Everything? BIDEN: Everything -- youve got to. (NBCs Meet The Press, 4/29/07) VIDEO: Biden In 07: Medicare Is Gorilla In The Room Requiring To Put All Of It On The Table

Biden Said He Would Absolutely Put All Options On The Table In Regards To Social Security And Medicare, Including Changes To The Age Of Eligibility And Cost Of Living. MSNBCS TIM RUSSERT: [S]enator, we have a deficit. We have Social Security and Medicare looming. The number of people on Social Security and Medicare is now 40 million people, its going to be 80 million in 15 years. Would you consider looking at those programs, age of eligibility, cost of living, put it all on the table? BIDEN: The answer is absolutely -- you have to. One of the things that the political advisers say to me is, Whoa, dont touch that third. Look, the American people arent stupid. Its a real simple proposition. (NBCs Meet The Press, 4/29/07) VIDEO: Biden In 07: Absolutely Put All Options On The Table In Regards To Medicare

Then-Sen. Obama Said Everything Should Be On The Table When It Comes To Social Security Because It Is Solvable And Not As Difficult A Problem As Medicare And Medicaid. ABCS GEORGE STEPHANOPOULOS: Youve also said that with Social Security, everything should be on the table. OBAMA: Yes. STEPHANOPOULOS: Raising the retirement age? OBAMA: Everything should be on the table. STEPHANOPOULOS: 54

Raising payroll taxes? OBAMA: Everything should be on the table. I think we should approach it the same way Tip ONeill and Ronald Reagan did back in 1983. They came together. I dont want to lay out my preferences beforehand, but what I know is that Social Security is solvable. It is not as difficult a problem as were going to have with Medicaid and Medicare. STEPHANOPOULOS: Partial privatization? OBAMA: Privatization is not something that I would consider, and the reason is this: Social Security, I think, is -- thats the floor. Thats the baseline. Social Security is that safety net that cant be frayed, and we shouldnt put at risk. (ABCs This Week, 5/13/07) VIDEO: Sen. Obama Claims Everything Should Be On The Table To Fix Social Security

Then-Sen. Obama Said That A Presidential Candidate Owes It To The American People To Tell Us Where They Stand On Social Security. OBAMA: Conventional thinking in Washington says that Social Security is the third rail of American politics. It says you should hedge, dodge, and spin, but at all costs dont answer. I reject that notion. I think that on issues as fundamental as how to protect Social Security a candidate for president owes it to the American people to tell us where they stand. (Sen. Barack Obama, Remarks At A Campaign
Event, Des Moines, IA, 10/27/07)

Obama Added Youre Not Ready To Lead If You Cant Tell Us Where Youre Going. OBAMA: Because youre not ready to lead if you cant tell us where youre going. (Sen. Barack Obama, Remarks At A Campaign Event, Des Moines, IA, 10/27/07) VIDEO: Barack Obama On Entitlement Reform Leadership

Then-Sen. Obama Says During The Presidential Debates That Entitlement Reform Is Something That He Would Like To Do In His First Term. BROKAW: Would you give Congress a date certain to reform Social Security and Medicare within two years after you take office? Because in a bipartisan way, everyone agrees, thats a big ticking time bomb that will eat us up maybe even more than the mortgage crisis. OBAMA: Well, Tom, were going to have to take on entitlements and I think weve got to do it quickly. Were going to have a lot of work to do, so I cant guarantee that were going to do it in the next two years, but Id like to do in the my first term as president. (Sen. Barack Obama, Remarks At Presidential Debate,
Nashville, TN, 10/7/08)

VIDEO: Barack Obama Promised To Fix Entitlements In His First Term

Then-Sen. Obama Attacked Sen. John McCain For Proposing To Cut Medicare To Pay For His Health Care Overhaul. OBAMA: But the Wall Street Journal recently reported that it was actually worse than we thought. It turns out, Senator McCain would pay for part of his plan by making drastic cuts in Medicare $882 billion worth. $882 billion in Medicare cuts to pay for a ill-conceived, badly thought through health care plan that wont provide more health care to people, even though Medicare is already facing a looming shortfall. (Sen. Barack Obama, Remarks At A Campaign Event, Roanoke, VA, 10/17/08) VIDEO: Flashback October 08: Obama Attacked McCain For Wanting To Cut Medicare To Pay For Health Care

Obama Said We Are Going To Have To Craft A Grand Bargain On Entitlements Because We Have Kicked This Can Down The Road, Were Now At The End Of The Road, And We Are Not In A Position To Kick It Any Further. OBAMA: The real problem with our long-term deficit actually has to do with our entitlement obligations and the fact 55

that historically if our revenues range between 18 and 20 percent of GDP, theyre now at 16, its just not sustainable. So, were going to have to craft, what George Stephanopoulos called a grand bargain, and I try not to use the word grand in anything I say, but were going to have to shape a bargain. This by the way is where there is going to be some very difficult choices, and issues of sacrifice and responsibility and duty are gonna come in because what we have done is kicked this can down the road, were now at the end of the road, and we are not in a position to kick it any further. (President Barack Obama, Remarks Before The
Washington Post Editorial Board, Washington D.C., 1/15/09)

VIDEO: Barack Obama Remarks On The Need To Save Social Security And Medicare

Obama Said If We Want To Get Serious About Fiscal Discipline We Will Also Have To Get Serious About Entitlement Reform OBAMA: Along with defense and interest on the national debt, the biggest cost drivers in our budget are entitlement programs like Medicare, Medicaid, and Social Security -- all of which get more and more expensive every year. So if we want to get serious about fiscal discipline, and I do, then were going to not only have to trim waste out of our discretionary budget -- which weve already begun -- we will also have to get serious about entitlement reform. (President Barack Obama, Remarks at Georgetown
University, Washington, D.C., 4/14/09)

VIDEO: Obama: If You Want Fiscal Reform, Get Serious About Entitlements

Obama Said The Problem With Entitlements Is Not Social Security, Its Medicare. OBAMA: The big problem we have with entitlements is not Social Security, its Medicare. Medicare and Medicaid, the two health care programs that the federal government helps support, those are the things that are really breaking the bank. (President
Obama, Remarks At A Town Hall, Arnold, MO, 4/29/09)

VIDEO: Obama: Medicare And Medicaid Are Really Breaking The Bank

Obama Acknowledged That Unless We Act, Within A Decade Within A Decade The Medicare Trust Fund Will Be In The Red. OBAMA: But we all know that right now, weve got a problem that threatens Medicare and our entire health care system, and that is the spiraling cost of health care in America today. As costs balloon, so does Medicares budget. And unless we act, within a decade -- within a decade -- the Medicare trust fund will be in the red. (President Barack Obama, Remarks In An AARP Tele-Town Hall On Health Care Reform, Washington D.C., 7/28/09) VIDEO: Obama Admits To AARP That Medicare Will Become Insolvent

Obama Said That Medicare Is Becoming Unstable And If We Do Nothing We Will Probably End Up Seeing More People Uninsured. OBAMA: On that trajectory, health care costs will probably double again -- your premiums will probably double again over the next 10 years. They may even go up faster than that. The costs of Medicare are going to keep on rising a lot faster than tax revenues coming in, which means that the trust fund -youve got more money going out than is coming in, which makes that more unstable. And we know that if we do nothing we will probably end up seeing more people uninsured.
(President Barack Obama, Remarks In An AARP Tele-Town Hall On Health Care Reform, Washington D.C., 7/28/09)

VIDEO: Obama Says Increasing Medicare Costs Creates Instability

Obama Said Mark My Words If We Do Nothing, At Some Point Medicare In About Eight To Nine Years Goes Into The Red. Somebody Mentioned Its Going Broke Yes, It Is Going Broke. OBAMA: And whats going to end up happening is -- mark my words -56

if we do nothing, at some point Medicare in about eight to nine years goes into the red. Somebody mentioned its going broke -- yes, it is going broke. (President Barack Obama, Remarks At A
Town Hall On Health Care, Grand Junction, CO, 8/15/09)

VIDEO: Obama In 09: Medicare Is Going Broke

Obama Said If We Dont Fix Medicare Well Either Have To Cut Medicare, In Which Case Seniors Then Will Bear The Brunt Of It, Or Well Have To Raise Taxes, Which Nobody Likes. OBAMA: So heres whats going to happen if we dont change the delivery systems and change some of the incentives -- well have a choice. Well either have to cut Medicare, in which case seniors then will bear the brunt of it, or well have to raise taxes, which nobody likes. (President Barack Obama, Remarks At A Town Hall On Health Care, Grand Junction, CO, 8/15/09) VIDEO: Obama In 09: If We Dont Do Anything, Well Have To Cut Benefits Or Raise Taxes

President Obama Tells ABCs Jake Tapper That One-Third Of ObamaCare Is Funded By Cuts to Medicare. ABCs JAKE TAPPER: One of the concerns about health care and how you pay for it -- one third of the funding comes from cuts to Medicare. BARACK OBAMA: Right. TAPPER: A lot of times, as you know, what happens in Congress is somebody will do something bold and then Congress, close to election season, will undo it. OBAMA: Right. TAPPER: You saw that with the doc fix. OBAMA: Right. TAPPER: Are you willing to pledge that whatever cuts in Medicare are being made to fund health insurance, one third of it, that you will veto anything that tries to undo that? OBAMA: Yes. I actually have said that it is important for us to make sure this thing is deficit neutral, without tricks. I said I wouldnt sign a bill that didnt meet that criteria. And what I also said in that speech to the joint session was that Im willing to put in some safeguards where if we dont obtain the savings that have been promised, that weve got to make adjustments in terms of the benefits, because the goal here is to reduce costs for families, give them more security, but do so in a way that is not adding to our deficit, that, in fact, over the long-term, if we can bend the cost curve, will reduce our deficit. And I promise you, were already starting to look at the, you know, fiscal year 2011 budget and the out years. And although we are in the midst of recession and we inherited a big structural deficit, nobody is more mindful of me -- than me of the fact that we cant have a -- a bill that simply blows up an additional entitlement thats not paid for. TAPPER: So Congress needs to know that youll veto any attempt to walk back what they pass? OBAMA: Congress needs to know that when I say this has to be deficit neutral, I mean it. (ABC News, 11/9/09) VIDEO: Obama In November 2009: Right, One-Third Of ObamaCare Funding Comes From Cuts To Medicare

Obama Recognized That If We Failed To Control Our Debt It Could Lead To A DoubleDip Recession. OBAMA: It is important though to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession. (Fox News,
Interview With Major Garrett, 11/18/09)

VIDEO: Obama: Failure To Control Our Debt Could Cause Double-Dip Recession

Obama Said That Entitlement Reform Wont Happen If People Demagogue Proposals To Fix The Problem. OBAMA: And I raise that not because we shouldnt have a serious discussion about it. I raise that because were not going to be able to do anything about any 57

of these entitlements if what we do is characterizedwhatever proposals are put out thereas, well, you know, thatsthe other party is being irresponsible; the other party is trying to hurt our senior citizens; that the other party is doing X, Y, Z. (President Barack Obama,
Remarks To The GOP Issues Conference, Baltimore, MD, 1/29/10)

Obama: Thats Why I Say If Were Going To Frame These Debates In Ways That Allow Us To Solve Them, Then We Cant Start Off By Figuring Out, A, Whos To Blame, B, How Can We Make The American People Afraid Of The Other Side. (President Barack Obama, Remarks To The GOP Issues Conference, Baltimore, MD, 1/29/10) VIDEO: Obama Says Dont Let Politics Get In The Way Of Serious Entitlement Reform

Obama Wondered When We Can Have A Serious Conversation About Medicare And Entitlements In Which Were Not Simply Trying To Position Ourselves Politically? OBAMA: And so the question is, at what point can we have a serious conversation about Medicare and its long-term liability, or a serious question abouta serious conversation about Social Security, or a serious conversation about budget and debt in which were not simply trying to position ourselves politically? Thats what Im committed to doing. We wont agree all the time in getting it done, but Im committed to doing it. (President Barack Obama,
Remarks To The GOP Issues Conference, Baltimore, MD, 1/29/10)

VIDEO: Obama: When Can We Have A Serious Discussion About Entitlements?

Obama Said Were Going To Have To Tackle The Big Stuff If Were Going To Get Our Budget Under Control. OBAMA: Most of the budget is Medicare, Social Security, Medicaid, defense spending, and interest on the national debt. That accounts for about 70 percent of the budget. And so all this other stuff that sometimes we argue about, thats not the big stuff. Were going to have to tackle the big stuff if were going to get our budget under control. (President Barack Obama, Remarks During A Discussion On Jobs And The Economy, Charlotte, NC, 4/2/10) VIDEO: Obama: Were Going To Have To Tackle The Big Stuff If Were Going To Get Our Budget Under Control.

Obama Said Weve Got To Refresh And Renew Medicare, To Make Sure That Its Going To Be There For The Next Generation As Well. OBAMA: But in the same way that Social Security has to be tweaked, because the population is getting older, weve got to refresh and renew Medicare, to make sure that its going to be there for the next generation as well. And the key problems are not just that more people as they retire are going to be part of Medicare. (President Barack Obama, Remarks At A Discussion With Ohio Families On The Economy, Columbus, OH,
8/18/10)

VIDEO: Obama In 10: Weve Got To Refresh And Renew Medicare

Obama Said Medicare Is The 800-Pound Gorilla. OBAMA: But youre absolutely right that were going to have to keep on making these changes to continue to make it stronger. And that will affect not just Medicare; itll affect the entire health-care system, because theres no doctor out there who doesnt see Medicare as the 800-pound gorilla.
(President Barack Obama, Remarks At A Discussion With Ohio Families On The Economy, Columbus, OH, 8/18/10)

VIDEO: Obama In 10: Medicare Is The 800-Pound Gorilla

Former President Bill Clinton Said Democrats Are Going To Have To Give Up Some Short Term Political Gains By Whipping Up Fears To Work On Reasonable 58

Entitlement Reforms. BILL CLINTON: I think we can have bipartisan cooperation. And I think the Democrats are going to have be willing to give up some short term political gains by whipping up fears on some of these things, if its a reasonable Social Security proposal, a reasonable Medicare proposal. Weve got to deal with these things. You cannot have health care devour the economy. (Fmr. President Bill Clinton, Remarks At The Peter Peterson Foundation Fiscal Summit,
Washington D.C., 5/25/11)

VIDEO: President Clinton Tells Dems To Stop Playing Politics With Health Care

Former President Bill Clinton Told Rep. Paul Ryan That He Hoped Democrats Didnt Use Politics As An Excuse To Do Nothing. BILL CLINTON: Im glad we won this race in New York, but I hope the Democrats dont use it as an excuse to do nothing. PAUL RYAN: My guess is its going to sink into paralysis is whats going to happen. You know the math. Its just -- we knew we were putting ourselves out there, but youve got to start this, you got to get out there. Youve got to get this thing moving. CLINTON: Do you want to talk about it? RYAN: Yes. Ill give you a call. Thanks. (Exchange Between Fmr. President Bill Clinton And Rep. Paul
Ryan, Washington, D.C., 5/25/11)

VIDEO: May 2011: Rep. Paul Ryan Talks With Bill Clinton on Entitlement Reform

Then-Chief Of Staff Bill Daley Said That Medicare Has Got To Be Strengthened. It Will Run Out Of Money In Five Years If We Dont Do Something. AMANPOUR: So does the president still call for cuts and changes to Medicare, Social Security? Is that still on the table? DALEY: Social Security is not about the deficit. AMANPOUR: Medicare. DALEY: Weve got to strengthen Social Security. Medicare has got to be strengthened. It will run out of money in five years if we dont do something. Obviously, there has to be improvements to it. (ABCs This Week, 7/10/11) VIDEO: Bill Daley Says That Medicare Will Run Out Of Money In 5 Years

Obama Admitted That The Democrats Do-Nothing Plan On Medicare Will Result In Medicares Bankruptcy. OBAMA: What Ive tried to explain to them is, number one, if you look at the numbers, Medicare in particular will run out of money, and we will not be able to sustain that program no matter how much taxes go up. I mean, its not an option for us to just sit by and do nothing. And if youre a progressive who cares about the integrity of Social Security and Medicare and Medicaid, and believes that it is part of what makes our country great, that we look after our seniors and look after the most vulnerable, then we have an obligation to make sure that we make those changes that are required to make it sustainable over the long term. (President Barack Obama, Remarks At A Press Conference, Washington, D.C., 7/11/11) VIDEO: Obama Admits Democrats Do-Nothing Plan Will Bankrupt Medicare

Obama Said He Was Open To Means Testing Medicare. ABC NEWS JAKE TAPPER: In the interest of transparency, leadership and offering also showing the American people that you have been negotiating in good faith, can you tell us one structural reform that you are willing to make to one of these entitlement programs that would have a major impact on the deficit? Would you be willing to raise the retirement age? Would you be willing to means test Social Security or Medicare? OBAMA: Weve said that we are willing to look at all those approaches. Ive laid out some criteria in terms of what would be acceptable. So for example, Ive said very clearly that we should make sure that current beneficiaries, as much as possible, are not affected, but we should look at what can we do in the out years so that, over time, some of these programs are more sustainable. Ive said that means testing 59

on Medicare, meaning people like myself, if -- you know, Im going to be turning 50 in a week, so (President Barack Obama, Remarks At Press Conference, Washington, D.C., 7/15/11) VIDEO: Obama in July 2011: Means Testing for Medicare

White House Senior Advisor David Plouffe Said Cuts In Medicare Are Necessary. PLOUFFE:Were going to do historic amounts of domestic spending cuts, entitlement reforms in areas of Medicare, and its been reported the president is willing to look at things like raising the retirement age in Medicare, additional savings in Medicare, even willing to look at some adjustments in Social Security down the line. So weve been very clear and I think the American people are clear about the approach they want which is a balanced approach. (CBS, Evening News, 7/27/11) VIDEO: Obama Advisor David Plouffe in July 2011: Obama Will Look at Raising Retirement Age in Medicare

Obama Deputy Campaign Manager Stephanie Cutter Bragged About ObamaCares Cuts To Medicare. CUTTER: Well, you know ask the wealthy to pay a little bit more. Cut waste from the government. Reform Medicare. More than $300 billion in savings from Medicare. On top of the savings weve already achieved. You know I heard Mitt Romney deride the $700 billion cuts in Medicare that the president achieved through health care reform. (CBS Face The Nation, 8/12/12) VIDEO: Obama Deputy Campaign Manager Cant Articulate Obama Plan For Fiscal Crisis

Obama Campaign Adviser Robert Gibbs Cant Explain The Presidents Plan For Medicare. MSNBCS CHUCK TODD: Does the President owe us a plan then? Ryans got a plan on Medicare, does the president owe us a Medicare sort of what do you do for Medicare after 2024. Should he be having to put a plan on the table before November? ROBERT GIBBS: Lets be clear that the President has taken important steps to not only make the Medicare benefit stronger, again by adding things like preventative healthcare TODD: Right but what comes next GIBBS: and weve extended the life of the healthcare TODD: So what comes next? GIBBS: Look I think thats gonna certainly be part to the debate in this campaign. TODD: My point is do you owe an alternative, youre running against his alternative. GIBBS: Again Im happy to compare what weve done and what they want to do and I dont doubt that well have a chance to have that continued debate.
(MSNBCs Daily Rundown, 8/13/12)

VIDEO: Robert Gibbs Dodges Questions On Where Is The Obama Medicare Plan

Campaign Adviser Robert Gibbs Dodge The Findings Of Medicares Actuary That Obamas Cuts Would Jeopardize Senior Access To Health Care. FOXS CHRIS WALLACE: That is the argument that the Obama campaign makes that the $716 billion is all in cuts to providers and insurance companies and it will have no effect on benefits or services to the beneficiaries. Let me ask my question. Medicares own actuary, own actuary of Medicare - not of the Romney campaign - says that is impossible. That you cant have the same services for $716 billion less. And lets put up some of what the Medicare actuary says. They say that 15 percent of Medicare providers will be unprofitable by 2019. 25 percent of Medicare providers will be unprofitable by 2030. And the Medicare actuary concludes this is his quote - in practice Medicare providers could not sustain continued negative margins and, absent legislative changes, would have to withdraw withdraw 60

from providing services to Medicare beneficiaries, merge with other provider groups or shift substantial portions of the Medicare costs it to their non-Medicare non-Medicaid providers. In other words, according to the actuary, Medicare patients, millions of them will lose access to Medicare benefits. OBAMA ADVISER ROBERT GIBBS: If Medicare companies that are involved in the program continue doing what they are doing, which is inefficient. WALLACE: Wait a minute. The actuary says, in practice, Medicare providers could not sustain continuing negative margins. GIBBS: If Medicare providers continue to do what we are doing. Right now, under the old program, Chris, if a senior got readmitted over and over and over to the hospital for the same illness, they got paid every single time the senior got admitted into the hospital. Why not strengthen the benefit by adding preventive health care to it and trying to ensure that the patient gets accountable care and treated before they get that disease. WALLACE: If the providers dont do it, then what happens is, under your plan, this unelected board, 15 bureaucrats come in and they decide what, well, you are laughing at it but that is it. The IPAB. GIBBS: I guess I am laughing at your characterization of it. WALLACE: Are they an elected board? GIBBS: They are medical professionals, they are people we trust to make medical decisions. WALLACE: Are they elected by anybody? They are an unaccountable unelected board that comes in and will make decisions on what the providers and what hospitals have to do and Congress either has to vote it all up or all down. (Foxs Fox News Sunday, 8/19/12) VIDEO: Obama Senior Adviser Dodges Questions About Impact Of Medicare Cuts Video Available, Not Captured Rep. Wasserman-Schultz In 2005: The Crisis We Should Be Talking About Is Medicare And The Looming Problem That Is Going To Present Because That Is What Is Facing Insolvency. WASSERMAN SCHULZ: The report that came out from the Social Security and Medicare trustees 2 weeks ago shows that the crisis we should be talking about is Medicare and the looming problem that is going to present because that is what is facing insolvency. (Rep. Debbie Wasserman-Schultz, Remarks Before The 30-Something Working Group, Washington D.C.,
4/5/2005)

VIDEO LINK (04:03:00)

Obama Said A Discussion Around Entitlements Would Be A Central Part Of Plans To Approach The Deficit. OBAMA: As you point out, the key is going to be medium-term and long-term, how do we bend the curve so that we start getting these deficits down to a manageable level? And entitlements are going to be a part of that. We will -- we are working currently on our budget plans. We are beginning consultations with members of Congress around how we expect to approach the deficit. We expect that discussion around entitlements will be a part, a central part, of those plans. And I would expect that by February, in line with the announcement of at least a rough budget outline, that we will have more to say about how were going to approach entitlement spending, how were going to approach eliminating waste in government, one of Nancys tasks. So we will have some very specific outlines in terms of how its going to be done. (President-Elect Barack Obama,
Remarks Announcing the Appointment of Nancy Killefer as Chief Performance Officer, Washington, D.C., 1/7/09)

VIDEO LINK

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Obama:The Big Problem Is Medicare, Which Is Unsustainable. . . . We Cant Solve Medicare In Isolation From The Broader Problems Of The Health-Care System. (Michael
D. Shear, Obama Pledges Entitlement Reform, The Washington Post, 1/16/09)

Obama On Keeping Social Security & Medicare From Bankrupting The Country: You Have To Have A President Who Is Willing To Spend Some Political Capital On This. And I Intend To Spend Some. (Michael D. Shear, Obama Pledges
Entitlement Reform, The Washington Post, 1/16/09)

AUDIO AVAILABLE

In February 2009, Obama Said In The Coming Years He Would Be Forced To Make Tough Choices And Do Much More To Address Our Long-Term Fiscal Challenges. OBAMA: In the coming years, well be forced to make more tough choices and do much more to address our long-term challenges, from the rising cost of health care that Peter described, which is the single most pressing fiscal challenge we face by far, to the long-term solvency of Social Security. (President Obama, Remarks By The President And The Vice President At Opening Of Fiscal
Responsibility Summit, Washington D.C., 2/23/09)

VIDEO LINK

Obama: I Wont Lie To You, We Cant Keep On Just Printing Money And Saying Well Let Our Children Worry About It. Those are the kinds of things -- those are the kinds of steps that we need to take. And we are going to go through this budget line by line. And some of these choices may be difficult. I wont lie to you, we cant keep on just printing money and saying well let our children worry about it. But we have to do it in a way that right now focuses on just getting people back on their feet, getting the economy running again. (President Obama, Remarks By The President, Costa Mesa, CA, 3/18/09) Obama: And Then Were Going To Have To Make Some Difficult Choices -Especially Over Some Of These Longer-Term Entitlements Like Social Security And Medicare. (President Obama, Remarks By The President, Costa Mesa, CA, 3/18/09) VIDEO LINK

Obama Said Theres Been A Tendency To Spend A Lot Of Time Scoring Political Points Instead Of Rolling Up Sleeves To Solve Real Problems. OBAMA: All of these efforts will require tough choices. All these efforts will require compromise. But the difficulties cant serve as an excuse for inaction -- not anymore -- which brings me to one final point Id like to make today. Ive talked a lot about the fundamental weakness in our economy that led us to this day of reckoning. But we also arrived here because of a fundamental weakness in our political system. For too long, too many in Washington put off hard decisions for some other time on some other day. Theres been a tendency to spend a lot of time scoring political points instead of rolling up sleeves to solve real problems.
(President Obama, Remarks By The President On The Economy, Washington, D.C., 4/14/09)

VIDEO LINK

Obama Said Make No Mistake: Health Care Reform Is Entitlement Reform. OBAMA: Nothing will be more important to this goal than passing health care reform that brings down costs across the system, including in Medicare and Medicaid. Make no mistake: health care reform is entitlement reform. (President Barack Obama, Remarks at Georgetown University,
Washington, D.C., 4/14/09)

VIDEO LINK 62

Obama Said If We Keep Borrowing From China To Pay For Our Entitlements At Some Point Theyre Just Going To Be Tired Of Lending To Us Because Theyve Got Their Own Senior Citizens That They Want To Take Care Off. OBAMA: Now, there are only a handful of ways to make these changes. Number one, you could just keep on trying to borrow a trillion dollars, or a couple trillion, or however much it takes from China. But thats not such a good solution, because youd end up having to pay interest on it and at some point theyre just going to be tired of lending to us because theyve got their own senior citizens that they want to take care off. (President Obama, Remarks At A Town Hall, Arnold, MO, 4/29/09) VIDEO LINK

Obama Said That If We Fail To Reform Entitlements Than In The Future They Will Consume The Federal Budget. OBAMA: What we face long term, the biggest problem we have is that Medicare and Medicaid -- health care costs are sky-rocketing, and at the same time as the population is getting older, which means were using more health care -- you combine those two things, and if we arent careful, health care will consume so much of our budget that ultimately we wont be able to do anything else. We wont be able to provide financial assistance to students; we wont be able to help build green energy; we wont be able to help industries that get into trouble; we wont have a national park system; we wont be able to do what were supposed to do on our veterans. Everything else will be pushed aside because of Medicare and Medicaid. Thats the problem that we really confront. (President Obama, Remarks At A Town Hall, Arnold, MO, 4/29/09) VIDEO LINK

Obama Said His Administration Would Work With Congress To Execute Serious Entitlement Reform That Preserves A Safety Net For Our Seniors OBAMA: But what is true about the budget -- is absolutely true -- is that we can cut programs, we can eliminate waste, we can eliminate abuse, we can eliminate earmarks; we could do all that stuff, and were still going to have a major problem, because Social Security, Medicare, Medicaid, interest on the national debt. And so I have said before and I will repeat again that my administration is going to seek to work with Congress to execute serious entitlement reform that preserves a safety net for our seniors, for people with disabilities, but also puts it on a firmer, stable footing so that peoples retirements are going to be secure not just for this generation, but also for the next generation. (President Obama, Remarks At A
Town Hall On Credit Card Reform, Rio Rancho, NM, 5/14/09)

VIDEO LINK

Obama: Let Me Talk About Medicare. Medicare Will Be Broke In Eight Years If We Do Nothing. OBAMA: Let me talk about Medicare. Medicare will be broke in eight years if we do nothing. Right now we give -- we give about $17 billion in subsidies to insurance companies through the Medicare system -- your tax dollars. But when we tried to eliminate them, suddenly there were ads on TV -- Oh, Obama is trying to cut Medicare. I get all these seniors writing letters: Why are you trying to cut my Medicare benefits? Im not trying to cut your Medicare benefits. Im trying to stop paying these insurance companies all this money so I can give you a more stable program. The point is this: None of the big issues that we face in this country are simple. Everybody wants to act like theyre simple. Everybody wants to say that they can be done easily. But theyre complicated. Theyre tough. The health care system is a big, complicated system, and doing it right is hard.
(President Barack Obama, Remarks During A Town Hall, Elyria, OH, 1/22/10)

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VIDEO LINK

President Obama Said His Fiscal Commission Cant Be One Of Those Washington Gimmicks That Lets Us Pretend We Solved A Problem. OBAMA: Now, even after paying for what we spent on my watch, we will still face the massive deficit we had when I took office. More importantly, the cost of Medicare, Medicaid, and Social Security will continue to skyrocket. Thats why Ive called for a bipartisan, Fiscal Commission, modeled on a proposal by Republican Judd Gregg and Democrat Kent Conrad. This cant be one of those Washington gimmicks that lets us pretend we solved a problem. The Commission will have to provide a specific set of solutions by a certain deadline. (President Barack Obama, Address
Before A Joint Session Of Congress On The State Of The Union, Washington D.C., 1/27/10)

VIDEO LINK

President Obama: Social Security We Could Probably Fix The Same Way Tip ONeill And Ronald Reagan Sat Down Together And They Could Figure Something Out. The major driver of our long-term liabilities, everybody here knows, is Medicare and Medicaid and our health care spending. Nothing comes close. Social Security we could probably fix the same way Tip ONeill and Ronald Reagan sat down together and they could figure something out. That is manageable. Medicare and Medicaid: massive problem down the road. Thats wherethats going to be what our children have to worry about. (President Barack
Obama, Remarks To The GOP Issues Conference, Baltimore, MD, 1/29/10)

VIDEO LINK

Obama Said It Is True That If We Do Nothing On Social Security That In The Future The Trust Fund Would Be Exhausted. OBAMA: It is true that if we continue on the current path with Social Security, if we did nothing on Social Security, that at a certain point, in maybe 20 years or so, what would happen is that you start seeing less money coming into the payroll tax, because the population is getting older so youve got fewer workers, and more people are collecting Social Security so more money is going out, and so the trust fund starts dropping. President Barack Obama, Remarks At A Town Hall Meeting, Henderson, NV, 2/19/10) VIDEO LINK

Obama Acknowledged If We Do Nothing About Social Security Than Younger Workers Will See Their Benefits Cut. OBAMA: And if we did nothing, then somewhere around 2040 what would happen would be a lot of the young people who would start collecting Social Security around then would find that they only got 75 cents on every dollar that they thought they were going to get. Everybody with me so far? (President Barack
Obama, Remarks At A Town Hall Meeting, Henderson, NV, 2/19/10)

VIDEO LINK

President Obama Said Were Going To Have To Tackle The Big Stuff If Were Going To Get Our Budget Under Control. OBAMA: Most of the budget is Medicare, Social Security, Medicaid, defense spending, and interest on the national debt. That accounts for about 70 percent of the budget. And so all this other stuff that sometimes we argue about, thats not the big stuff. Were going to have to tackle the big stuff if were going to get our budget under control. (President Barack Obama, Remarks By The President In A Discussion On Jobs And The Economy,
Charlotte, NC, 4/2/10)

VIDEO LINK 64

President Obama Said Weve Got To Get Control Of Entitlement Reform And Added That ObamaCare Went a Long Way Towards Doing That. OBAMA: That means that weve got to get control of entitlement reform. And by the way, health-care reform went a long way towards doing that. But were also going to have to look at Social Security and the other aspects of entitlements. (President Barack Obama, Interview With John Harwood Of CNBC, 4/21/10) VIDEO LINK

Obama Said Weve Got To Make Sure That Social Security Is There Not Just For This Generation But For The Next One. OBAMA: So thats just a small change. Its voluntary, but that in and of itself could end up boosting savings rates significantly. So there are a bunch of ways that we can do -- make sure that retirement is more secure. But weve got to make sure that Social Security is there not just for this generation but for the next one. Okay? (President Barack Obama, Remarks On The Economy And A Question-And-Answer Session, Columbus, OH. 8/18/10) VIDEO LINK

Obama Said The Biggest Driver Of The Federal Debt Is Medicare Costs. OBAMA: We also know that the biggest driver of the federal debt is Medicare costs. Nothing else comes close. We could implement every cut that the House of Representatives right now has proposed and it would not make a dent in our long-term budget, wouldnt make a dent in our long-term deficits -- because of healthcare costs. We know its one of the biggest strains in your state budgets -- Medicaid. (President Barack Obama, Remarks By The President And The Vice
President To The National Governors Association, Washington D.C., 2/28/11)

Obama: So, Yes, We Need A Conversation About Pensions And Medicare And Medicaid And Other Promises That Weve Made As A Nation. OBAMA: So, yes, we need a conversation about pensions and Medicare and Medicaid and other promises that weve made as a nation. And those will be tough conversations, but necessary conservations. (President Barack Obama, Remarks By The President And The Vice President To The
National Governors Association, Washington D.C., 2/28/11)

VIDEO LINK

Obama Said He Favored Lifting The Social Security Cap Because That Would Do A Significant Amount To Stabilize The System. OBAMA: For example -- Ill just give you one example of a change that would make a difference in Social Security. Right now you only pay a Social Security tax up to a certain point of your income. So a little bit over $100,000, your Social Security -- you dont pay Social Security tax. Now, how many people are making less than $100,000 a year? Dont be bashful. The point is, for the vast majority of Americans, every dime you earn, youre paying some in Social Security. But for Warren Buffett, he stops paying at a little bit over $100,000 and then the next $50 billion hes not paying a dime in Social Security taxes. So if we just made a little bit of an adjustment in terms of the cap on Social Security, that would do a significant amount to stabilize the system. And thats just an example of the kinds of changes that we can make. (Barack Obama,
Remarks At Northern Virginia Community College, Annandale, VA, 4/19/11)

VIDEO LINK

Obama Said That During The Debt Ceiling Debate He Offered An Additional $650 Billion In Cuts To Entitlement Programs Medicare, Medicaid, Social Security. OBAMA: Essentially what we had offered Speaker Boehner was over a trillion dollars in cuts to discretionary spending, both domestic and defense. We then offered an additional 65

$650 billion in cuts to entitlement programs Medicare, Medicaid, Social Security. We believed that it was possible to shape those in a way that preserved the integrity of the system, made them available for the next generation, and did not affect current beneficiaries in an adverse way. (President Barack Obama, Remarks By The President, Washington D.C., 7/22/11) VIDEO LINK

Obama Said If We Didnt Do Anything, Then Medicare And Medicaid Would Gobble Up Basically The Entire Federal Budget. OBAMA: The bigger problem is Medicare and Medicaid. And the reason thats a problem is because health care costs keep on going up faster than inflation, peoples wages, peoples incomes at the same time as folks are getting older, so weve got more people into the system. And if we didnt do anything, then Medicare and Medicaid would gobble up basically the entire federal budget. (President Barack
Obama, Remarks At A Townhall Meeting, Alpha, IL, 8/17/11)

VIDEO LINK

Former Clinton Chief Of Staff And Co-Chair Of Obamas Fiscal Commission Said Of Rep. Paul Ryan This Guy Is Amazing He Is Honest, He Is Straightforward, He Is Sincere. BOWLES: Have any of you all met Paul Ryan? We should get him to come to the university. Im telling you this guy is amazing. I always thought I was okay with arithmetic, this guy can run circles around me. He is honest, he is straightforward, he is sincere. And the budget that he came forward with is just like Paul Ryan. It is a sensible, straightforward, serious budget and it cut the budget deficit just like we did, by $4 trillion. The President came out with his own plan. The president as you remember, came out with a budget and I dont think anybody took that budget very seriously. The Senate voted against it 97 to nothing. (Erskine Bowles, Remarks At The University Of North Carolina, Chapel Hill, NC, 9/8/11) VIDEO LINK

Treasury Secretary Timothy Geithner Admitted The Administration Doesnt Have A Definitive Solution To The Long-Term Problems Posed By Our Entitlement Programs. REP. PAUL RYAN: Because we got 10,000 people retiring every day, and healthcare costs going up TREASURY SECRETARY TIMOTHY GEITHNER: Thats right. We have millions of Americans retiring every day, and that will drive substantially the rate of growth of healthcare costs. You are right to say were not coming before you today to say we have a definitive solution to that long-term problem. What we do know is, we dont like yours. (Testimony Before The House Committee On The Budget, U.S. House Of Representatives, 2/16/12) VIDEO LINK

Senator Ron Wyden (D-OR) Said The Ryan-Wyden Plan Protects The Neediest Seniors: The Most Vulnerable Seniors, Who Are Dual-Eligible For Medicare And Medicaid. WYDEN: I do, and this is an area where clearly more work is going to be necessary to come up with a bipartisan approach. If you look at our white paper that we put out in December of last year, you will see a very strong and focused effort to protect the neediest seniors: the most vulnerable seniors, who are dual-eligible for Medicare and Medicaid. (Wyden On The Ryan-Wyden Plan And A Bold Medicaid Alternative, Medscape, 6/22/12) VIDEO LINK

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