Changes

The President emphasized his proposal to freeze for three years non-defense [[discretionary spending]]. Economist Martin Feldstein observed the president's plan would not apply to [[backdoor spending]]: increases in [[mandatory spending]] programs and [[tax ependiture]]s—new tax rules that substitute for increased government spending,<ref>[http://www.nber.org/feldstein/wsj02182010.html How Obama Should Shrink His Deficit], Martin Feldstein, ''[[Wall Street Journal]]'', February 18, 2010. Retrieved from nber.org</ref> like refundable tax credits.<ref>[http://www.concordcoalition.org/publications/facing-facts/1996/0913/back-door-entitlement The Back-Door Entitlement], The Concord Coalition.</ref><ref>[http://oversight.house.gov/wp-content/uploads/2012/02/10-27-11_Obamacares_Subsidies_and_Tax_Distribution_Final.pdf Impact of the Obamacare Tax Credits], House Committee on Oversight and Government Reform, Staff Report, October 27, 2011. <br>"The Congressional Budget Office (CBO) projects that Obamacare’s refundable health insurance tax credits and Medicaid expansion will increase the nation’s debt burden by $1.36 trillion in the first seven years that these provisions are fully implemented...85 percent of filers who claim the credit will end the year with zero or negative income tax liability. Since the tax credit is refundable, nearly all 11.3 million of these filers will have negative income tax liability and will no longer pay the cost of government by contributing federal income taxes....For example, a family of four at 200 percent of the [Federal Poverty Level] (about $48,677 in 2016) cannot pay more than 6.3 percent of their income for health insurance...The CBO estimates that the average cost of the reference insurance plan (the plan used to calculate the tax credit) will be $14,100 for family coverage in 2016. Therefore, a family of four that qualifies for a credit in 2016 and that makes $48,677 would be required to pay about $3,067 for health insurance (6.3 percent of household income). The difference, $11,033, is the value of this family’s refundable tax credit...According to the CBO, 20 million Americans will receive health insurance tax credits in 2020 at a cost of $130 billion."</ref>

The President emphasized his proposal to freeze for three years non-defense [[discretionary spending]]. Economist Martin Feldstein observed the president's plan would not apply to [[backdoor spending]]: increases in [[mandatory spending]] programs and [[tax ependiture]]s—new tax rules that substitute for increased government spending,<ref>[http://www.nber.org/feldstein/wsj02182010.html How Obama Should Shrink His Deficit], Martin Feldstein, ''[[Wall Street Journal]]'', February 18, 2010. Retrieved from nber.org</ref> like refundable tax credits.<ref>[http://www.concordcoalition.org/publications/facing-facts/1996/0913/back-door-entitlement The Back-Door Entitlement], The Concord Coalition.</ref><ref>[http://oversight.house.gov/wp-content/uploads/2012/02/10-27-11_Obamacares_Subsidies_and_Tax_Distribution_Final.pdf Impact of the Obamacare Tax Credits], House Committee on Oversight and Government Reform, Staff Report, October 27, 2011. <br>"The Congressional Budget Office (CBO) projects that Obamacare’s refundable health insurance tax credits and Medicaid expansion will increase the nation’s debt burden by $1.36 trillion in the first seven years that these provisions are fully implemented...85 percent of filers who claim the credit will end the year with zero or negative income tax liability. Since the tax credit is refundable, nearly all 11.3 million of these filers will have negative income tax liability and will no longer pay the cost of government by contributing federal income taxes....For example, a family of four at 200 percent of the [Federal Poverty Level] (about $48,677 in 2016) cannot pay more than 6.3 percent of their income for health insurance...The CBO estimates that the average cost of the reference insurance plan (the plan used to calculate the tax credit) will be $14,100 for family coverage in 2016. Therefore, a family of four that qualifies for a credit in 2016 and that makes $48,677 would be required to pay about $3,067 for health insurance (6.3 percent of household income). The difference, $11,033, is the value of this family’s refundable tax credit...According to the CBO, 20 million Americans will receive health insurance tax credits in 2020 at a cost of $130 billion."</ref>

=====FY 2012 Budget=====

'''FY 2012 Budget'''

Obama was roundly criticized for ignoring recommendations of his own Deficit Reduction Commission in his proposed 2012 Budget.<ref>[http://www.askheritage.org/where-does-obamas-budget-proposal-fall-short/ Where does Obama’s budget proposal fall short?] [[Heritage Foundation]]</ref> Obama's proposals did nothing to address the burgeoning budget deficit responsible for lagging job creation and the persistent [[unemployment]] which has become the hallmark of his time in office.<ref>[http://www.businessweek.com/ap/financialnews/D9MOJ3VG0.htm Obama's deficit plans run into economic reality] [[Associated Press]]</ref> In response to [[Republican]] counter-proposals, rather than address substantive issues of reform, Obama descended into ''[[ad hominem]]'' attacks against advocates of improving the delivery of government services.<ref>http://www.mcclatchydc.com/2011/04/24/112725/obama-paints-rep-ryan-as-the-gop.html</ref><ref>[http://www.realclearpolitics.com/articles/2011/04/23/the_unhappy_president_109638.html The Unhappy President] [[RealClearPolitics]]</ref>

Obama was roundly criticized for ignoring recommendations of his own Deficit Reduction Commission in his proposed 2012 Budget.<ref>[http://www.askheritage.org/where-does-obamas-budget-proposal-fall-short/ Where does Obama’s budget proposal fall short?] [[Heritage Foundation]]</ref> Obama's proposals did nothing to address the burgeoning budget deficit responsible for lagging job creation and the persistent [[unemployment]] which has become the hallmark of his time in office.<ref>[http://www.businessweek.com/ap/financialnews/D9MOJ3VG0.htm Obama's deficit plans run into economic reality] [[Associated Press]]</ref> In response to [[Republican]] counter-proposals, rather than address substantive issues of reform, Obama descended into ''[[ad hominem]]'' attacks against advocates of improving the delivery of government services.<ref>http://www.mcclatchydc.com/2011/04/24/112725/obama-paints-rep-ryan-as-the-gop.html</ref><ref>[http://www.realclearpolitics.com/articles/2011/04/23/the_unhappy_president_109638.html The Unhappy President] [[RealClearPolitics]]</ref>