PRESIDENT OBAMA’S PROPOSED FEDERAL SPENDING WILL TOP $4 TRILLION this year, about 29 percent of GDP-exceeded only by spending during World War II. Then there are the Administration’s plans to add $1.9 trillion in new taxes. This heady sum can hardly come from just the so-called rich as he claims. In addition, the cap-and-trade carbon tax will demand another $648 billion and will hit anyone who consumes energy, which means everyone. The President tells us that the higher taxes and enormous public spending are necessary to pay for recovery and deficit reduction.
One needn’t look too far to see how a platform of higher taxes, huge budget deficits, and growth of government at the expense of the private sector plays out. California, for the fifth year running in CE’s annual survey of Best and Worst States in which to do business, has taken top honors as the least congenial place to do business.
There are a host of reasons why the
Under Republican governor Schwarzenegger the state budget actually grew even faster-10 percent annually as opposed to 7 percent-than under his spendthrift Democratic predecessor, Gray Davis. The problem is that there are consequences, as