published Wednesday, September 21st, 2011

Obama resorts again to high taxes, spending

It is obvious that the federal government spends too much. The $14.7 trillion national debt is high on the list of Americans' concerns in various opinion polls.

President Barack Obama, however, thinks the problem is that Washington doesn't tax and spend enough. He says he wants to tax more and spend more to boost the economy and start reducing the high unemployment that his previous "stimulus" failed to solve. Meanwhile, he offers uncertain promises of spending cuts.

In addition to the big new stimulus plan he recently proposed, Obama is offering a 10-year plan for $3 trillion in supposed deficit reductions. Here are some of the specifics:

* He would raise taxes $800 billion by ending tax relief for higher-income households (some of which represent job-providing small businesses).

* He would raise an additional $700 billion in taxes by limiting charitable and other deductions for people earning more than $250,000, and raising taxes on oil and gas producers. That would mean less money being donated to charity and higher gas prices for consumers.

* He would -- eventually -- cut Medicare spending $248 billion and cut Medicaid spending $72 billion, as well as reduce farm subsidies and reduce benefits for federal employees. Those changes, if kept in place by future lawmakers and presidents, would reduce deficits $580 billion.

* And he seeks $1 trillion worth of cuts in Afghanistan and Iraq -- though those reductions have been previously accounted for and thus are not "new" cuts. In short, the deficit reductions the president proposes would be far smaller than $3 trillion.

It is appalling that the president is seeking massive tax hikes amid minimal and uncertain spending cuts, especially when he is separately seeking a new $447 billion "stimulus."

We are in a time of severe economic crisis, yet there is no indication that the president is willing to offer proposals with any realistic hoping of turning things around.

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Livn4life said...

Nothing new in this approach, we should not be surprised. He just keeps on with stuff which has been proven not to work. Why is that so? Well it seems he thinks he knows better which is presumptuous and arrogant. Meanwhile the national media laud his efforts to do what has been proven over and over again not to work. There is little wonder we are in such a mess and showing no signs of moving out of it. And lest you think I am a mean old Republican conservative, let me add that Republicans seem to have no idea what to do either. If common sense were used instead of a sense of re-empowerment, maybe we would begin to climb out of the hole. That is not happening from the right or left side.

September 21, 2011 at 6:33 a.m.
nucanuck said...

If we do what we logically should...stop the money printing, cut spending drastically, and carefully target some new taxes...we would have an immediate deflationary wave (maybe needed) that would smash us into an economic collapse instantly...not weeks or months...today.

No President of any stripe would ever be willing to do that. Right or wrong, that is just not a political option.

September 21, 2011 at 1:24 p.m.
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