Changes

Obama's first two budget deficits (FY 2009 and FY 2010) were more than $1 trillion, or 9% of [[GDP]]. The [[Democrat]]ic Congress failed to pass, and President Obama did not sign, a budget for fiscal year 2011, as required by law. But the administration continued spending anyway with a deficit projected to be at least another $1 trillion again for 2011. Combined with a shrinking economy, the publicly held federal debt increased by over 20% of GDP in Obama's first two years, and was projected to increase by another 7% in 2011. Experts warned the President that deficits of this size were not sustainable in the long run because the federal debt cannot indefinitely grow faster than economic output. Eventually a greater and greater share of national income would be devoted to interest payments, until eventually the government would be forced to finance the debt through money creation ([[inflation]]) or [[default]].

Obama's first two budget deficits (FY 2009 and FY 2010) were more than $1 trillion, or 9% of [[GDP]]. The [[Democrat]]ic Congress failed to pass, and President Obama did not sign, a budget for fiscal year 2011, as required by law. But the administration continued spending anyway with a deficit projected to be at least another $1 trillion again for 2011. Combined with a shrinking economy, the publicly held federal debt increased by over 20% of GDP in Obama's first two years, and was projected to increase by another 7% in 2011. Experts warned the President that deficits of this size were not sustainable in the long run because the federal debt cannot indefinitely grow faster than economic output. Eventually a greater and greater share of national income would be devoted to interest payments, until eventually the government would be forced to finance the debt through money creation ([[inflation]]) or [[default]].

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><small>"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 FPL (about $48,677 in 2016)6 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 2016.7 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."</small></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><small>"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 FPL (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."</small></ref>

===Obama Care===

===Obama Care===