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Obama Wants To Kill December Tax Deal

From a cheering Associated Press:

Obama first to put tax increases on budget table

By Tom Raum, Associated Press Writer
April 12, 2011

WASHINGTON – Higher taxes have been missing from the fierce budget battle that nearly shut down the federal government. But President Barack Obama is about to put them on the table — at least a modest version that he had pushed before and then rested on the shelf.

So the extension of the Bush tax extension deal that was to last for two years, is now just to last four months? And Mr. Obama said we couldn’t shut down the government because the markets need stability and confidence?

What is the point in making a deal with Obama? What good is his word?

Most economists and budget analysts say a comprehensive mix of spending cuts and tax increases is essential to any viable deficit-reduction plan. Yet few players in the negotiations have gone there.

How many economists believe that you should raise taxes in the middle of a recession when unemployment is still stuck at over over 8%. When fuel prices are going through the roof?

Are these the same economists that the AP always cites to tell us that recovery is just around the corner and that businesses are poised to go on a hiring spree? Or did the AP just make them up out of whole cloth?

It comes in the scramble to heed what is widely viewed as a loud clamor from voters to slam the brakes on runway government spending. There has been no corresponding public demand for raising taxes.

Perhaps the AP is unaware of the fact that the clamor they speak of is coming from the ‘Taxed Enough Already Party.’ (The sad thing is, they probably don’t realize that it is an acronym.)

That’s not surprising, but the top-bracket U.S. tax rate now is the lowest it’s been in decades, and it’s far lower than those in many other industrialized countries, especially in western Europe…

Not that this is really true, since we also have state and local taxes. But look at Europe.

Tax elements of Obama’s broad deficit-reduction plan, to be laid out in a speech Wednesday, seem likely to revive his earlier proposals.

The president is expected to bring back his recommendation, first made in the 2008 campaign, to end Bush-era tax cuts for households earning over $250,000 a year. He temporarily set it aside when he signed onto a late 2010 agreement with Republicans to extend all Bush tax cuts for two years.

However, he did renew the bid earlier this year in his budget for the 2012 fiscal year that begins Oct. 1.

So any ‘deals’ with Mr. Obama are basically meaningless. His ‘word’ means nothing.

Any comprehensive deficit-reduction plan must include a mix of spending cuts and tax increases, experts argue from both sides of the political spectrum…

Well, if the AP’s bipartisan "experts" say we must raise taxes, then we guess we will have to. (And, mind you, this is supposed to be a news article. Not a legal brief for Mr. Obama tax hikes.)

With a presidential election just around the corner, and voters demanding cuts in government spending, few politicians seem eager to climb out on a higher-taxes limb.

Even Obama’s bid to end Bush-era tax cuts for the wealthiest Americans — bitterly fought by Republicans — would just take tax rates on them back to where they were in the 1990s, a decade of strong economic growth

Thanks to the ‘dot com bubble’ and the ‘paper’ real estate boom.

Heavy pressure from the tea party wing of the Republican Party, with its insistence on smaller government and strong opposition to new taxes, has complicated efforts by Republican leaders, especially House Speaker John Boehner of Ohio, to find common ground with the White House…

Which is why they are the hope for America. And why they are so hated by the Democrats and their lickspittle minions at the AP and the rest of the news media.

Obama’s proposal to let the Bush tax cuts expire for families making over $250,000 or individuals earning above $200,000 will be woven into the upcoming presidential election. In emphasizing it now, rather than later, Obama all but assured that outcome.

Who knows what this last sentence is supposed to mean. But one thing is assured. If the Democrats raise taxes and push us into an even deeper recession, they will be driven out of power for a generation.

Obama also is expected to call for other changes in the tax code, which he contends benefits the rich…

Goodbye deductions, including for mortgages. Which will do wonders for the housing market.

This year’s budget deficit is expected to be a record $1.6 trillion. But that’s just for one year. Added to previous years’ deficits, it brings the national debt to a shade under $14.3 trillion. Annual deficits are expected to decline as the economy recovers from the worst downturn since the 1930s, but then climb again as millions of baby boomers qualify for government Social Security and Medicare benefits.

As even Mr. Boehner likes to say, we don’t have a revenue problem, we have a spending problem. Let’s try cutting spending first. And real cuts. Not pennies on the dollar.

Any politician from either party who even suggests raising taxes, should be ignore and un-elected at the first opportunity. We are taxed enough too much already.

This article was posted by Steve on Tuesday, April 12th, 2011. Comments are currently closed.

4 Responses to “Obama Wants To Kill December Tax Deal”

  1. Rusty Shackleford says:

    Emboldened by the results of the latest “negotiations” to stave off a *gasp* government shutdown, the chairman now thinks the fruit is ripe for the picking of injecting more socialism into the system which is currently on life-support and is being administered last rites.

  2. proreason says:

    Yep. Little lenin has boner”s hat size now.

    The only question is whether we will be weeping when we agree to 96.2% of what the boy king demands.

  3. Chase says:

    The detailed description Steve provided yesterday in the smoke and mirrors accounting and the already dying programs or whatever that were added into the big $38b slice off the budget was really disheartening. It proves to me that no one in Congress, or not enough of them anyway, really believe in cutting programs completely, dissassembling anything, much as Rusty was calling for.

    The only effective and must be first step to serious and courageous work on our fiscal sensibility, and reversal from the march to a Marxist state is TERM LIMITs. No one in DC is obviously going to vote for any cuts that affect their own constituency, or their own re-election potential.

    So while I am pleased to read that there seems to be a welling of popular and widespread disgust at the spending going on, nothing will happen unless it is combined with a referendum on term limits. Something will happen otherwise to quell the rising and justified sentiment, and we will go back to business and graft and waste and the plodding march to further entitlements and national insolvency, and universal despair and malaise….

    • SinCity says:

      I caught a few minutes of Hannity last night, and was very disheartened. He had some of the freshman class of TEA Party endorsed representatives with their pollster (his name escapes me at the moment). Hannity then asked, by a show of hands, how many of those folks were willing to cut HUD. At first, none raised their hands. Then a couple sheepishly raised theirs. My heart sank, we are toast. Here we have supposedly the toughest fiscal hawks that can be elected, but already they are worried about how it would play in the Make Believe Media as to how they want to throw Aunt Zeituni out on her a**, in the middle of winter.

      The hyperbole that is spewing from DC, especially from the marxists is really sickening. There has to be drastic measures taken to right the financial ship. I fear it is probably already too late. I just wonder when the idiocracy will wake up from their American Idol slumber and demand that the adults be back in charge of the asylum.

      I do realize though that the problem doesn’t lie so much with the idiocracy, but mostly with the morons in DC. The marxists hijacking with the ship of state, and the dim witted Republicans just wanting a chip in the game going along to get along. When is the idiocracy going to realize that all of this deficit spending ($0.40 on the dollar) is a tax on the future earnings of generations not even born yet? When will sanity and critical thinking come back, and when did it leave? Purely rhetorical, I know… now I made myself sad.

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