The Political Showdown Over Obama's Budget

(CBS)  The budget showdown rolls on this week in the nation's capital, reports CBS News correspondent Kimberly Dozier. On Sunday, Democrats and Republicans took to the airwaves in another preview of what is fast becoming a bitter fight.

The battle lines have been drawn, Dozier reports, Democrat versus Republican, over the White House's multi-trillion-dollar budget.

"We've laid out a vision: start to invest in America, invest in your middle class, make the tough choices, be honest with the American people," said White House Chief of Staff Rahm Emanual on CBS' Face The Nation.

"I think it's terrifying in the policy implications, as well as mind-boggling in the numbers," Jon Kyl, a Republican Senator from Arizona, said on Fox News Sunday.

It comes down to a difference in philosophy, Dozier reports.

The $3.6 trillion budget pours money into education, transportation and energy. In all, it maps out $500 billion dollars of increased federal spending over the next decade - not counting the cost of planned health care reform. The budget is supposed to pay for itself by raising taxes on the wealthy and on corporations, and cutting many corporate tax breaks.

Republicans call it a plan to re-distribute wealth - robbing from the rich to pay the poor, and leaving future generations to pick up the massive tab.

"It's got a $1.4 trillion tax increase in it, in the middle of a recession," said Congressman Paul D. Ryan, a Wisconsin Republican. "It doubles the debt in eight years. It never balances the budget, in fact, it proposes for the next 10 years that our deficits are the highest we've ever had on record."

Republican heavyweight, Newt Gingrich calls Mr. Obama's plan a game changer for the future.

"He said, 'I want to become a more left-wing country with a bigger government, with higher taxes.' Now, do you want to go that way or not?" Gingrich asked on CBS' Face The Nation.

The White House says the course the last administration took relied on consumer spending and tax cuts for corporations and the higher paid - and that got us where we are now - in trouble.

"Clearly, this budget is changing course," says Peter Orszag, director of the Office of Management and Budget. "It's, like, you know - and the GPS system is recalculating the route and people are getting used to that."

The White House hopes to pass most of the budget by April, Solorzano reports. Advisors say now is the time to do it - early in the administration. They've got high approval ratings and maximum political capital to push this through.

[claydowner]

The Republicans complaining about this $3.6 trillion budget raising the deficit to around $1.6 trillion is a remarkable feat of amnesia. The mantra of the Republicans was deregulate the markets and let banks and corporations regulate themselves. The result has been a disaster in the subprime mortgage meltdown, the bailout of Wall Street investment banks due to highly leveraged credit default swaps, and on top of fighting two wars giving tax cuts to the top 2% on borrowed money from China. All of these actions have doubled our national debt. These policies gutted our economy of capital and froze the credit markets while ruining many trillions of dollars in private investments in retirement accounts. Republicans need to eat some crow and come up with better ideas for helping unemployed people. Tax cuts have been tried and their whole philosophy of deregulation a total failure leading to the current disasters of this deepening recession.

The Obama budget is a sorely needed correction to all of the tax breaks oil companies, huge banks, and other corporations were given under the Bush Administration. We need to invest in our infrastructure and in health care, education, and on developing renewable sources of energy to get off of imported OPEC. We need to start making investments into the future like educating more engineers, mathematicians, teachers, and technicians of all kinds. We must get free of the noose of OPEC oil because when oil was $140 per barrel we were sending $700 billion overseas so Dubai can build skyscrapers. Other OPEC countries freely support terrorists. The Pickens energy plan, wind farms, solar thermal plants, and cars that get 50 MPG, like European turbodiesels or electric hybrids must be built here at home. Reclycling and the insulation and weatherization of homes to conserve energy are imperatives for our national economy. We also need to develop bullet trains like the French TGV. There is plenty to do and President Obama's budget is only a start. Also Americans are going to be paying considerably more taxes. We have 77 million retiring baby boomers who will need medical care and pensions. The days of owning a 4,000 square foot house and two huge gas guzzling SUV's are going to be replaced by smaller homes, smaller electric hybrid cars, and higher fees and taxes from the federal, state, and local governments. These are the facts of life we have to deal with as a nation in the 21st century.

[dhutch88]

spend spend spend, tax tax tax. Stock market crash. Great way to start your 100 days.

[wvu74621]

Bob and weave, Bob and weave...whoops he dropped his pork sandwich................

[omega39-2009]

Republicans call it a plan to re-distribute wealth - robbing from the rich to pay the poor, and leaving future generations to pick up the massive tab.

And where were all these "stalwart" fiscal conservatives when Bush was launching us into two wars while shelving a treasury report that outlined massive chronic debt while he pushed tax cuts geared to the wealthiest? Where was the outrage as wealth was transferred upwards while debt was being passed on to future generations? This is exactly the reason that the GOP will never again be taken seriously by anyone other than the bunch that believe Sarah Palin would make a good presidential candidate.

[wvu74621]

Am I the only one who finds the government spending $11,883.00 PER PERSON nuts?
Posted by mjvwsr at 6:38 AM : Mar 2, 2009
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Wow thats really breaking it down. When you look at it in that way it is even more shocking than when you hear it straight from the horses mouth.

[wvu74621]

I can't even listen to ten seconds of it. They failed. They lost. Thank God.
Posted by Barry Kay at 6:10 AM : Mar 2, 2009
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Don't get ahead of yourself, you will probably be saying the same thing about Obama in 4 years.

[mjvwsr]

Am I the only one who finds the government spending $11,883.00 PER PERSON nuts?

[JoeChemicalEngineer]

What is a left wing government?? Does it have something to do with Angels? Do the Republicans have the right wing of the Angel??

Do you believe in Angels?

There is no god. Until we get this straight the world is doomed.... Its such a beautiful place and yet so ugly too......

[wvu74621]

We tried following Bush ... look where that got us! It's Obama time ... let's get behind the guy ... this recovery means a leader will be in charge ... how's about we support the guy!
Posted by emelder2 at 5:57 AM : Mar 2, 2009
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I would support him if he was'nt pulling the same old cra-p that NEARLY every other President has pulled. He is'nt even giving anyone the benefit of a reach around. He has to repay his secret promises to his campaign contributirs before he worries about you or I, hence the budget wrapped in a pork sandwich. Politicians should only be allowed to use campaign contribution made by taxpayers through mail in donations. No contributions should be allowed by banks, special interest groups, corporations, oil conglamorats etc and So what they may not have billions to spend on their campaigns, but who says they have to go to the extent that they have to get elected. They should get enough free media attention to speak to the people.

[grumpas]

Where were all these self-righteous screaming conservatives when the Republican's were destroying the country?????? Don't tell me let me guess??? They didn't necessarily believe in the rape of this country but went along with it anyway. That's what that weeny who calls himself my Congressman did. All the kool-aid drinkers in my state voted the arrogant jerk right back into office. Now he is the loudest voice protesting the 'spending money we don't have'! All while he was Bush's favorite lap dog 'spending money we didn't have'!