We have good news and bad news.
The good news is that President Obama has unveiled his final budget.
The bad news is that it’s a roadmap for an ever-growing burden of government spending. Here are the relevant details.
- The President wants the federal budget to climb by nearly $1.2 trillion over the next five years.
- Annual spending would jump by an average of about $235 billion per year.
- The burden of government spending would rise more than twice as fast as inflation.
- By 2021, federal government outlays will consume 22.4% of GDP, up from 20.4% of economic output in 2014.
I guess the President doesn’t have any interest in complying with Mitchell’s Golden Rule, huh?
While all this spending is disturbing (should we really step on the accelerator as we approach the Greek fiscal cliff?), the part of this budget that’s really galling is the enormous tax increase on oil.
As acknowledged in a report by USA Today, this means a big tax hike on ordinary Americans (for what it’s worth, remember that Obama promised never to raise their taxes).
Consumers will likely pay the price for President Obama’s proposed $10 tax per-barrel of oil, an administration official and a prominent analyst said Thursday. Energy companies will simply pass along the cost to consumers, Patrick DeHaan, senior petroleum analyst for GasBuddy.com, which tracks gas prices nationwide, said in an interview with USA TODAY. ….a 15-gallon fill-up would cost at least $2.76 more per day. It would also affect people who use heating oil to warm their homes and diesel to fill their trucks.
Isn’t that wonderful. We’ll pay more to fill our tanks and heat our homes, and we’ll also pay more for everything that has oil as an input.