Hey, I'm back from vacation! Here's the first nugget of the day from the Hill: "CBO estimates Obama's 2013 budget plan would hit economic growth." In sum, they estimate it could slow growth between 0.5 and 2.2% because of federal borrowing sucking all the oxygen from business:
Larger deficits caused by the budget would cause the government to issue more bonds, sucking up private capital to finance its debts and thereby reducing the funds businesses could use to expand and hire, the CBO said. An increased tax on capital gains included in the president's plan would also tend to reduce private capital, it says.So business can't grow, meaning the government can't collect much-needed corporate and personal income taxes, which then leads to calls by Obama to increase spending to help Americans affected by the economic downturn. Smartest President ever.