Obama’s Hope and Change
Obama’s Hope and Change has brought us to this point. A senate that doesn’t make a budget. Unemployment at 9.2%. Housing values in toilet. And now this debt ceiling crises. Of course, Mr. Hope and Change demonstrated his arrogance in the face of reality by summoning house leaders to the White House on Saturday to “explain how we’re going to avoid default.” Obama has used this entire event to, somehow, increase the likelihood of his reelection in 2012; every move nothing but political posturing aimed at protecting 1) his presidency and 2)big government. He’s not serious about cutting:
The President insists his party is offering serious spending cuts and entitlement reform. He also likes to talk about “balance,” which to him means real tax increases immediately and speculative spending cuts some time in the distant future. Behind the scenes the White House has only ever agreed to token reform and cuts. Here’s a number for the debt history books: Mr. Obama’s final offer in the Biden talks was a $2 billion cut in 2012 nondefense discretionary spending. The federal government spends more than $10 billion a day.
Obama’s line in the sand is that he doesn’t want to have to raise the debt limit again until he’s safely back in the Oval Office in 2012. He fears losing the presidency more than default. What does he really care about what happens to the coutry? He’s set for life. He’s going to Martha’s Vinyard next month. How about you? We just canceled the short family (camping) vacations we’d hoped to take this summer.
And, of course, Obama wants the rich, you know the jet owners and millionairs and billionairs to pay their fair share:
The Tax Foundation reports that between 1986 and 2008, the share of federal income taxes paid by the top 5% of earners has risen to 59% from 43%. Between 1986 and 2009, the percentage of Americans who pay zero or negative federal income taxes has increased to 51% from 18.5%. And all this is accompanied by an increase in our national debt to 100% of GDP today from 42% in 1980.
The problem with increases revenue streams, as Obama and Harry and Nancy refer to raising taxes, is that the taxes increases always happens, while those cuts? Not so much. We fell for this in ’82, when Reagan agreed to modest business tax increases in exchange for spending cuts. $3 in spending cuts for every $1 in tax increases. Who could oppose that?
You don’t have to be a Washington veteran to predict what happened next. The tax increases were promptly enacted — Congress had no problem accepting that part of the deal — but the promised budget cuts never materialized. After the tax bill passed, some legislators of both parties even claimed that there had been no real commitment to the 3-to-1 ratio.
In fact, spending for fiscal year 1983 was some $48 billion higher than the budget targets, and no progress was made in lowering the deficit. Even tax receipts for that year went down — a lingering effect of the recession, which the additional business taxes did nothing to redress.
Promised cuts mean nothing. They never happen. They haven’t happened in the past, and they won’t happen this time. Promises will disappear into the ether.
Cut. Cap. Balance.
OH – and an important read about those folks who don’t have to pay income taxes- the tax takers. In the efforts of “fairness”, we’ve got a wealth redistribution scheme that takes tax money from some folks and just flat-out gives it to others.
I mentioned the tattoo joke above. It turned out to be the truth in the only anecdotal story I heard during my stint at the IRS. A golfing buddy said his girlfriend’s daughter claims EITC among other things and received a U.S. government check for $6,000. She used the money to take her toddler daughter and the child’s ne’er-do-well father to the Monterey Bay Aquarium — a couple hundred bucks — and spent the remainder for a giant tattoo on her back. I’m so glad I could help.