A Closer Look at the President's Deficit Proposal
Created on September 21, 2011
The bulk of President Obama's deficit "cuts," highlighted below in orange, are either unrealistic or highly questionable. The likely result: spending reductions totaling a mere $130 billion and taxes hiked by $1.6 trillion.
Figures in Billions of Dollars
2011 full-year appropriations -$357
Budget Control Act discretionary caps - $992
New Spending "Reductions"
"War Savings" -$1,084
Debt service -$715
Health and mandatory savings -$577
Subtotal: Plausible New Spending Reductions -$577
New Spending: American Jobs Act +$447
Net New Spending Reductions -$130
Tax Increases +$1,573
Source: Heritage calculations based on data from Office of Management and Budget, "The President's Plan for Economic Growth and Deficit Reduction," September 2011, Summary Tables, Table S-6, p. 65.