President Obama on Monday submitted his 2016 proposed budget that includes more than twenty new tax increases to the tune of $2 trillion over the next ten years, supposedly to benefit the middle-class, Fox News reported. However, when Office of Management and Budget (OMB) Director Shaun Donovan was asked at Tuesday’s budget hearing if Obama’s budget exceeds the legal limit, he refused to answer.
When asked several times at Tuesday’s budget hearing, Donovan would not answer a simple question of a yes or a no on the legality of the president proposed budget, which would violate the 2011 Budget Control Act, to which the president agreed to abide by and supported. At the hearing, Sen. Jeff Sessions (R-Ala.) told Donovan, “The problem is your policies… tax more, spend more, borrow more, regulate more, Obamacare more… an immigration policy that dominates the market with workers from abroad when we don’t have enough jobs for American workers, pulling down wages of Americans. That’s what’s caused this problem, in my opinion.”
“We’ve got a problem, but your ideas will not work, they will never work,” Sessions said. Sessions then asked Donovan if his budget would spend more than the current law allows and while Donovan sidetracked the question several times, Sessions asked, “Let me ask you this simple question. Does your budget spend more or less than we agreed to with Pres. Obama in the Budget Control Act of 2011?” Donovan replied, “Our budget, overall, reduces spending relative to current law.”
Sen. Sessions shot back and said, “I just asked a simple question. You work for the taxpayers, Mr. Donovan. I’m asking you on their behalf a simple question: Does your budget spend more money next year than the current law of the Budget Control Act allows?” Donovan replied and said, “Overall, our budget reduces spending compared to current law.” Sen. Session again asked, “Overall, your budget spends $74 billion more next year than allowed by current law, isn’t that true?”
Donovan said, “I think what you’re focused on senator is discretionary spending and I think there is broad agreement that sequestration is hurting our military readiness; the Joint Chiefs of Staff testified to that this past week and it is hurting our ability to invest in things…” Sessions cut off Donovan and said, “You work for the American people, Mr. Donovan, I ask you… do you propose spending more money next year on discretionary accounts than was agreed to in the Budget Control Act? Yes, or No?”… Are you not going to answer that question?” Donovan said, “I believe I have answered it.” A visibly angered Sessions responded by saying, “No, you haven’t.”
According to a report released by Sen. Sessions in January 2015, he pointed out that American workers face a perilous economic terrain in which family incomes have plummeted and that one in four people in the prime working-years are not working, and labor force participation is at a nearly four-decade low. Debt has surpassed $18 trillion, while the crisis of unfunded fiscal obligations grows nearer. The President has added to this a budget proposal that explodes the debt even further, and an immigration plan that substantially boosts current, already-record immigration flows, further undermining the wages and financial position of struggling workers in America.
In light of the president’s proposed budget, Fox News also reported on Monday that the federal government stands to be the largest moneymaker that would allow the top income earners to take tax deductions at the 28 percent rate, even if their income is taxed at the top 39.6 percent rate. That would bring into the federal government’s coffers $603.2 billion in revenue over a ten-year period.