Washington, D.C. – White House Chief of Staff Jack Lew took to the airwaves this past weekend to tout the Obama 2013 budget, repeatedly claiming “that for every dollar of new revenue the budget includes $2.50 in spending cuts”.
But the top Republican on the Joint Economic Committee, Rep. Kevin Brady (R-TX), its Vice Chairman, took a closer look at that claim and came up with a much different conclusion.
“When we fact checked this claim it quickly earned a rating of ‘untrue’”, said Brady. “The White House counted spending cuts already enacted into law and also disguised interest savings on tax increases as spending cuts. A math teacher would call that cheating. ”
“The true ratio is a mere 83 cents in spending cuts for every dollar in tax increases, which means that President Obama wants to force forcing hardworking taxpayers to tighten their belts before Washington tightens its belt. That’s not fair, especially when President Obama wants to take more of your income to fund a bloated, unsustainable government.”
The key budget gimmick is this: The President’s proposed budget counts $1.72 trillion in spending cuts already enacted into law and another $800 billion in interest effects as spending cuts. In reality his budget proposes a mere $1.25 trillion in spending cuts and a record $1.51 trillion in new tax increases which yield a much different ratio: 83 cents in cuts to each dollar in new tax increases.
The analysis was conducted by the Joint Economic Committee Republican staff.