Forecasts and Trends
Obama’s 2013 Budget Targets the Rich
By Gary D. Halbert

Some weeks there is so much to write about, it is difficult to know where to start. Today, for example, it is so tempting to write about President Obama’s attempt to require the Catholic Church and all of its hospitals and universities to provide free birth control, abortion and sterilization for women, only to walk it back a few days later.
While many Americans viewed Obama’s reversal as a victory, it was not. Unwilling to accept defeat, Obama merely shifted this healthcare burden to the health insurance companies. Does anyone believe the insurance companies are going to provide all these extra services for free? Not! I could write for hours on this topic, but I will leave that to others.
Instead, we’ll focus on President Obama’s new federal budget proposal for fiscal 2013 which was announced on Monday. ‘s an annual ritual for me to criticize presidents’ budgets that increase spending every single year. For newer readers, please note in advance that I criticized every one of President George W. Bush’s budgets for eight years, so I’m not breaking new ground today.

Obama’s 2013 Budget Targets the Rich
The Obama Administration has unveiled its federal budget request for FY2013 which begins on October 1. As expected, the budget request was record-large at $3.8 trillion, up from $3.73 trillion in the request for FY2012. The latest budget forecasts a federal deficit of $1.3 trillion for FY2012. That will make a record four consecutive annual budget deficits over $1 trillion under Obama. The budget deficit estimate for FY2013 is $901 billion. We’ll see.
The latest budget was seen by many as a re-election campaign document in that it frames Obama’s economic pitch to voters and seeks to shift the focus from deficits to economic growth. The myriad of tax increases embrace his recent theme of fairness” and shared responsibilities.
The president’s annual budget request is only that – a request. Congress is under no obligation to accept the president’s annual budget request. However, Congress is required to at least give it an up or down vote. Typically, the vote is down since members of Congress prefer to craft their own budgets for federal spending each year – at least until the last few years, that is. The Democrat-controlled Senate, for example, has not been able to produce a federal budget in almost three years, which is an embarrassment.
Last year, Obama’s record-large budget request of $3.73 trillion for FY2012 was roundly rejected in the Senate by a vote of 97-0! The budget request the Obama administration recently released which is even bigger and more complex, is likely to face a similar fate. Even if it is voted down, Congress will come up with something similar, sadly.