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A Closer Look at the President's Deficit Proposal

Created on September 21, 2011

A Closer Look at the President's Deficit Proposal

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

Enacted Policies

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.