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PostPosted: 11/29/09 11:57 am • # 1 
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It's my understanding that one of the reasons for the HUGE jump in deficit is because Obama put the Iraq and Afghanistan war expenses ON the books [as opposed to gwb, who intentionally kept those expenses OFF the books] ~ this "war tax" proposal actually makes sense, especially when compared with the proposed dollar-for-dollar demands in health care ~ altho I readily admit I will be VERY pissed off paying a tax for a war I didn't and still don't support ~ btw, I tried to embed the CNN video clip via html, but it wouldn't post ~ the video clip can be viewed at the end link ~ Sooz

November 29, 2009
Posted: November 29th, 2009 04:55 PM ET

From CNN Associate Producer Martina Stewart

Washington (CNN) - A leading congressional Democrat who is the chief proponent of a new tax that would fund future military operations in Afghanistan suggested Sunday that continuing to fight the Afghan war under current conditions is "a fool's errand" and, at the same time, said that his tax proposal would create a sense of shared sacrifice that has been missing in the last eight years.

Rep. David Obey, a Democrat from Wisconsin, is expressing serious reservations about the U.S. military effort in Afghanistan - just days before President Obama is expected to announce a substantial increase in U.S. troops in the country.

"The problem is that you can have the best policy in the world, but if you don't have the tools to implement it, it isn't worth a beanbag," Obey said on CNN's State of the Union, "And I don't think we have the tools in the Pakistani government and I don't think we have the tools in the Afghan government. And until we do, I think much of what we do is a fool's errand."

Although Obey praised the process the president has used to revamp military strategy in Afghanistan, the Wisconsin Democrat who is chairman of the House Appropriations Committee, said his differing opinion of the war is caused by consideration of the country's long term fiscal resources and needs.

"The Pentagon has only one job, and that's to talk about this war and this war only," Obey told CNN Chief National Correspondent John King, "But [Obama] has, and I have jobs that require us to look at everything else that's tied into it.

"I have to look at the entire federal budget, as chairman of the committee, for instance. I have to see what $400 billion or $500 billion, $600 billion, $700 billion, over a decade, for this effort, will cost us on education, on our efforts to build the entire economy. And - and when you look at it that way, I come to a different conclusion than [Obama] does."

To fund continuing operations in Afghanistan, Obey has proposed what some observers are calling a "war tax." The "Share the Sacrifice Act of 2010" would impose a one percent tax increase on most Americans. Obey's proposal exempts service members who have served in Iraq or Afghanistan since 2001 along with families who have lost an immediate relative in either military conflict.

The point of the proposed new tax, Obey told King, is "in this war, we have not had any sense of shared sacrifice. The only people being asked to sacrifice are military families. They've had to go to the well again and again and again. And yet everybody else in society - you know, they're essentially told to go shopping by the previous president."

"I just think that, if this war is important enough to engage in the long term, it's important enough to pay for," Obey said Sunday.

Discussing the hundreds of billions of dollars that a possible long term commitment in Afghanistan could cost, Obey also linked funding the war to how President Obama and Democrats have chosen to pay for health care reform, one of the top Democratic policy initiatives in Obama's first year in office.

"We've been told for a year that we need to pay for every dollar that it's going to cost us to reform our health care system," Obey told King, "That's about $900 billion over 10 years. If we wind up being committed in Afghanistan for eight to 10 years, that's also going to approach $800 billion to $900 billion. And if we're going to do that, it seems to me that if we're being told we have to pay for health care, we certainly ought to pay for this effort as well."

http://politicalticker.blogs.cnn.com/20 ... more-79588



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PostPosted: 11/29/09 12:35 pm • # 2 
It's my understanding that one of the reasons for the HUGE jump in deficit is because Obama put the Iraq and Afghanistan war expenses ON the books [as opposed to gwb, who intentionally kept those expenses OFF the books]

That's not correct. The Bush administration did not include most of the war costs in its budget proposal submitted to Congress, and the appropriations for war costs were handled through supplemental appropriations bills. But those costs were on the books and were included in the annual expenditure total for the federal government, thus contributing to the determination of the annual deficit. The deficit is, after all, the amount by which annual expenditures exceed annual revenues. Inclusion or exclusion of expenditures in the budget proposal or Congressional budget resolution has no bearing on whether or not expenditures contribute to the annual deficit or surplus.

The huge jump in the deficit for FY 2009 was the result of a huge increase in expenditures and a sizeable decrease in federal tax revenue.


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PostPosted: 11/29/09 3:09 pm • # 3 
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Thanks, gop ~ so ... would it be correct to say the reason for the HUGE jump in the budget is because Obama made war costs a line item while gwb used "supplemental appropriations"?

Sooz


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PostPosted: 11/29/09 3:38 pm • # 4 
No, because when you look at the Obama budget for FY 2010 (which started October 1) he proposed $3.591 trillion in spending, as opposed to approximately $3.6 trillion in actual spending (including war costs) for FY2009 when all was said and done. So spending is going to be about flat versus FY 2009, because TARP has essentially ended. But the total is proposed to be about $800 billion more than FY 2008 as a result of increased program spending and the stimulus spending that will happen in FY2010.

The unfortunate thing about the Obama budgets is he isn't projecting any net spending decrease in the budget even after the stimulus spending has been exhausted, meaning he's going to increase base federal spending by more than the annual stimulus cost in FY2010. That's why his projected deficit in FY2017 (the end of an 8-year Obama administration) is still projected to by $675 billion and rising.

http://www.whitehouse.gov/omb/budget/fy2010/assets/summary.pdf


Last edited by gopqed on 11/29/09 3:41 pm, edited 1 time in total.

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