ObamaMath: $500 billion in tax hikes for $50 billion in spending cuts [Darleen Click]
Obama is committed to expanding Government and strangling private enterprise
Well, it was former Bush adviser Keith Hennessey who discovered a big obstacle in all this. Team Obama wants a gargantuan $1.6 trillion tax hike over the next 10 years to finance larger government. And Hennessey surmised — and I agree — that the reason the president couched his language in terms of higher tax “revenues” rather than tax “rates” is that he essentially wants both. Raise the top rates and cap or eliminate a number of tax deductions for more revenues. This is going to be a big problem. It could well be a deal-breaker.
House Speaker John Boehner has been pressing for a quasi tax reform, which may be the best Republicans can get. Namely, leave the tax rates alone and put a Mitt Romney-like cap on so-called tax loopholes that mainly concern upper-end earners. This Republican revenue concession would at least preserve economic-growth tax incentives. Yes, it would transfer $1.3 trillion from the private sector to government hands, a huge anti-growth transfer of resources. But at least the Boehner plan leaves tax rates unchanged.
However, raising the two top rates would only produce about $440 billion, which is way below Obama’s $1.6 trillion number. So you can almost sense that the president is going to go for higher tax rates, strict limits on itemized deductions, a phase-out of the personal exemption, and tax-rate hikes on capital gains, dividends, and estates. On top of all that, the Financial Times reports that Team Obama wants a $150 billion business tax hike over 10 years.
Sooner or later this is the Obama agenda. [...]
By making capital less valuable and more expensive, you get less of it. And you can’t have entrepreneurial capitalism without capital. Higher capital costs block business formation, productivity, jobs, and incomes.
Does anyone seriously think we’d be looking at $500 bil in tax hikes if Romney was going to be sworn-in in January?
We are all Julia now.
Tags: big government, obama, tax hikes