OBAMA and HIS Spending Habit

FACT CHECK: Obama and his imbalanced ledger



FACT CHECK: A tricky juggling act as Obama urges more spending and a freeze on spending


Calvin Woodward, Associated Press
Tuesday January 25, 2011, 10:24 pm EST



WASHINGTON (AP) -- The ledger did not appear to be adding up Tuesday night when President Barack Obama urged more spending on one hand and a spending freeze on the other.

Obama spoke ambitiously of putting money into roads, research, education, efficient cars, high-speed rail and other initiatives in his State of the Union speech. He pointed to the transportation and construction projects of the last two years and proposed "we redouble these efforts." He coupled this with a call to "freeze annual domestic spending for the next five years."

But Obama offered far more examples of where he would spend than where he would cut, and some of the areas he identified for savings are not certain to yield much if anything.

For example, he said he wants to eliminate "billions in taxpayer dollars we currently give to oil companies." Yet he made a similar proposal last year that went nowhere. He sought $36.5 billion in tax increases on oil and gas companies over the next decade, but Congress largely ignored the request, even though Democrats were then in charge of both houses of Congress.

A look at some of Obama's statements Tuesday night and how they compare with the facts:

OBAMA: Tackling the deficit "means further reducing health care costs, including programs like Medicare and Medicaid, which are the single biggest contributor to our long-term deficit. Health insurance reform will slow these rising costs, which is part of why nonpartisan economists have said that repealing the health care law would add a quarter of a trillion dollars to our deficit."

THE FACTS: The idea that Obama's health care law saves money for the government is based on some arguable assumptions.

To be sure, the nonpartisan Congressional Budget Office has estimated the law will slightly reduce red ink over 10 years. But the office's analysis assumes that steep cuts in Medicare spending, as called for in the law, will actually take place. Others in the government have concluded it is unrealistic to expect such savings from Medicare.

In recent years, for example, Congress has repeatedly overridden a law that would save the treasury billions by cutting deeply into Medicare pay for doctors. Just last month, the government once again put off the scheduled cuts for another year, at a cost of $19 billion. That money is being taken out of the health care overhaul. Congress has shown itself sensitive to pressure from seniors and their doctors, and there's little reason to think that will change.


OBAMA: Vowed to veto any bills sent to him that include "earmarks," pet spending provisions pushed by individual lawmakers. "Both parties in Congress should know this: If a bill comes to my desk with earmarks inside, I will veto it."

[Great, but where have you been for the last couple years.  Why promise to veto now?  Why didn't you then??]



THE FACTS: House Speaker John Boehner, R-Ohio, has promised that no bill with earmarks will be sent to Obama in the first place. Republicans have taken the lead in battling earmarks while Obama signed plenty of earmark-laden spending bills when Democrats controlled both houses.

It's a turnabout for the president; in early 2009, Obama sounded like an apologist for the practice: "Done right, earmarks have given legislators the opportunity to direct federal money to worthy projects that benefit people in their districts, and that's why I've opposed their outright elimination," he said then.




OBAMA: "I'm willing to look at other ideas to bring down costs, including one that Republicans suggested last year: medical malpractice reform to rein in frivolous lawsuits."

[So an idea Democrats have ignored and quite honesatly ignored - he is NOW ready to consider.  Why now, if it is good enough to look at now, wasn't it worth considering it two years ago?]

THE FACTS: Republicans may be forgiven if this offer makes them feel like Charlie Brown running up to kick the football, only to have it pulled away, again.

Obama has expressed openness before to this prominent Republican proposal, but it has not come to much. It was one of several GOP ideas that were dropped or diminished in the health care law after Obama endorsed them in a televised bipartisan meeting at the height of the debate.

Republicans want federal action to limit jury awards in medical malpractice cases; what Obama appears to be offering, by supporting state efforts, falls short of that. The president has said he agrees that fear of being sued leads to unnecessary tests and procedures that drive up health care costs. So far the administration has only wanted to pay for pilot programs and studies.

Trial lawyers, major political donors to Democratic candidates, are strongly opposed to caps on jury awards. But the administration has been reluctant to support other approaches, such as the creation of specialized courts where expert judges, not juries, would decide malpractice cases.



OBAMA: Praised the "important progress" made by the bipartisan fiscal commission he created last year.

[That commission decided nothing, achieved nothing, and considering the composition - was not as equally balanced as he suggests.  It is easy to agree to milk toast - we need to cut spending.  What braniac doesn't recognize that imperative - cut spending.  His touting the bipartisanship of this committee is like celebrating the fact your child just graduated from pre-school - and suggesting to anyone and everyone that one graduation (pre-school) indicates you child is well on his/her way to graduating from Harvard.]


THE FACTS: The panel's co-chairmen last month recommended a painful mix of spending cuts and tax increases, each of them unpopular with one constituency or another, including raising the Social Security retirement age, cutting future benefit increases, raising the gasoline tax and rolling back popular tax breaks like the mortgage interest deduction. But Obama has yet to sign on to any of the ideas, even though he promised when creating the panel that it would not be "one of those Washington gimmicks."

Obama missed another chance Tuesday night to embrace the tough medicine proposed by the commission for bringing down the deficit. For example, the president said he wanted to "strengthen Social Security for future generations" -- but ruled out slashing benefits or partially privatizing the program, and made no reference to raising the retirement age. That left listeners to guess how he plans to do anything to salvage the popular retirement program whose trust funds are expected to run out of money in 2037 without changes.


OBAMA: As testament to the fruits of his administration's diplomatic efforts to control the spread of nuclear weapons, he said the Iranian government "faces tougher and tighter sanctions than ever before."

THE FACTS: That is true, and it reflects Obama's promise one year ago that Iran would face "growing consequences" if it failed to heed international demands to constrain its nuclear program. But what Obama didn't say was that U.S. diplomacy has failed to persuade Tehran to negotiate over U.N. demands that it take steps to prove it is not on the path toward a bomb. Preliminary talks with Iran earlier this month broke off after the Iranians demanded U.S. sanctions be lifted.


[And the AP story is not a right wing hatchet job.  I would NOT consider the AP right-wing, by any stretch.]




















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