Obama and Senate Democrats solution to Sequester?: Increase government spending by $62.4 billion, raise taxes by $55.1 billion, raise the deficit by $7.2 billion!
CBO estimates that S. 388 would increase direct spending by $62.4 billion and revenues by $55.1 billion over the 2013–2023 period. Thus, the cumulative deficit would increase by $7.2 billion from those changes.Obama has been critical of what he claims is a "meat cleaver" approach to cutting the deficit. But his solution is to increase the deficit. His offer to Republicans who are trying to cut the deficit is to increase it.
UPDATE: IBD claims that Obama's own proposal is even worse, though as they point out the plan has been well hidden.
. . . Turns out, Obama did have one [though he] . . . hasn't exactly been promoting this so-called plan. . . .
There are no details, for example, about the $200 billion in cuts to defense and domestic discretionary programs, other than that Obama wants them split evenly.
And while he offers $400 billion in "health savings," 30% are lumped in a bucket labeled "other."
Worse, Obama's "balanced" plan actually counts hundreds of billions of new revenues from taxes, fees and rebates as "spending reductions." Examples:
• His plan to "strengthen" unemployment insurance is labeled as a cut, but it's really a $50 billion tax hike.
• The $35 billion from the federal worker retirement programs involves boosting worker contributions.
• Most of the $35 billion in Medicare savings comes from charging wealthy seniors more.
• The $140 billion in "reduced payments to drug companies" are in fact rebates Obama wants drugmakers to pay Uncle Sam for selling drugs to poor seniors.
• Then there's the $45 billion in spectrum fees and asset sales that Obama lists as spending reductions.
Viewed correctly, it turns out that more than $300 billion — about a third — of Obama's proposed "spending cuts" are actually revenue increases. . . .