The plan Obama is pushing to replace the sequester will result in over $1 trillion in new taxes and only $600 billion in cuts. Well it's not really a plan... according to Investors Business Daily
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:
Viewed correctly, it turns out that more than $300 billion — about a third — of Obama's proposed "spending cuts" are actually revenue increases.
- 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.
As a result, instead of $1.2 trillion in spending cuts called for by the sequester over the next decade, Obama would add more than $1 trillion in revenues, while cutting outlays only about $600 billion. And much of those aren't real cuts, but tiny reductions in projected spending growth over the next decade.
I would say that the President is lying but as he is bending the truth about the spending cuts he may be also fudging the "no Jedi" tricks thing and I really don't want to get the Bob Woodward treatment--or worse.