PayGo Front For Tax Increases

Socialist Barack Hussein Obama‘s PayGo is another lie, another scheme.  It will do nothing to slow down his deficit spending.  PayGo is to make Americans feel good that the Democrats want to stop deficit spending.  Worse it is the vehicle for Obama to break his pledge of no new taxes for those of us earning less than $250,000.

Some schemes Obama comes up with are ludicrous and Obama's re-endorsement Tuesday of "pay-as-you-go" budgeting is a prime example. Coming after $787 billion in non-stimulating stimulus, a $410 billion omnibus to wrap up fiscal 2009, a $3.5 trillion 2010 budget proposal, sundry bailouts and a 13-figure health-care spending expansion still to come, this latest vow of fiscal chastity is an insult to America's intelligence.

Obama must think the press and public are dumb enough to buy it, because there he was Tuesday re-selling the same "PayGo" promises that Democrats roll out every election. PayGo is "very simple," the President claimed. "Congress can only spend a dollar if it saves a dollar elsewhere."

That's what Democrats also promised in 2006, with Nancy Pelosi vowing that "the first thing" House Democrats would do if they took Congress was re-impose PayGo rules that "Republicans had let lapse." By 2008, Pelosi had let those rules lapse no fewer than 12 times, to make way for $400 billion in deficit spending.

Obama repeated the PayGo pledge during his 2008 campaign, and instead we have witnessed the greatest peacetime spending binge in U.S. history. As a share of GDP, spending will hit an astonishing 28.5% in fiscal 2009, with the deficit hitting 13% and projected to stay at 4% to 5% for years to come.

The truth is that PayGo is the kind of budget gimmick that gives gimmickry a bad name. Obama knows but won't tell voters, PayGo only applies to new or expanded entitlement programs, not to existing programs such as Medicare, this year growing at a 9.2% annual rate. Nor does PayGo apply to discretionary spending, set to hit $1.4 trillion in fiscal 2010, or 40% of the budget.

Obama's new proposal includes many loopholes. There's an exception for Congress's annual alternative-minimum tax "patch," which is worth at least $576 billion over 10 years; for any of the Bush tax cuts that Obama decides he wants to extend past 2010; and to protect against planned cuts in Medicare doctor payments. These carve-outs alone spare Democrats from having to come up with some $2.5 trillion in spending cuts or new taxes. To add insult to profligacy, the rules also allow the Administration to run huge early deficits for its looming Obamacare health-care bonanza and only pay for it later, say, after 2012.

The President also revived the myth that PayGo was somehow responsible for eliminating budget deficits during the Clinton years. In fact, that brief era of balanced budgets was due to: mid-decade spending reductions by a GOP Congress elected on a balanced-budget pledge; an excessive cut in defense spending to 3% from 5% of GDP across the decade; and an unsustainable revenue boom due to the dot-com bubble. But harking back to the 1990s lets Obama avoid having to defend his own spending record.

PayGo is another Obama fraud scheme and lie.  It’s to make America think he and the Democrats are working to decrease the deficit as they increase it more and more.  What Obama and the Democrats want to do is increase your taxes and this is their vehicle to do just that.

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