Obama makes a critical decision....
Heads I win....
Tails you loose.
Posted on 07/11/2011 5:46:33 AM PDT by Hunton Peck
In a 75-minute meeting Sunday night, President Obama once again demanded that more than $1 trillion in tax increases be part of any deficit reduction package attached to a vote on the debt ceiling. In the session, Obama rejected a Republican proposal to seek $2.5 trillion in spending cuts and reforms, and insisted on higher taxes on businesses and wealthy individuals. Barack Obama,
It’s a curious position, given the anemic economic growth and rising unemployment. And it’s even more curious considering that Obama himself has warned about the deleterious effects of raising taxes in a struggling economy.
In August 2009, on a visit to Elkhart, Indiana to tout his stimulus plan, Obama sat down for an interview with NBC’s Chuck Todd, and was conveyed a simple request from Elkhart resident Scott Ferguson: “Explain how raising taxes on anyone during a deep recession is going to help with the economy.”
Obama agreed with Ferguson’s premise – raising taxes in a recession is a bad idea. “First of all, he’s right. Normally, you don’t raise taxes in a recession, which is why we haven’t and why we’ve instead cut taxes. So I guess what I’d say to Scott is – his economics are right. You don’t raise taxes in a recession. We haven’t raised taxes in a recession.”
Todd reminded Obama that he had promised to raise taxes on “some of the wealthiest” Americans.
Obama responded by reiterating his opposition to tax hikes during a recession and making an argument about timing. “We have not proposed a tax hike for the wealthy that would take effect in the middle of a recession. Even the proposals that have come out of Congress – which by the way were different from the proposals I put forward – still wouldn’t kick in until after the recession was over. So he’s absolutely right, the last thing you want to do is raise taxes in the middle of a recession because that would just suck up – take more demand out of the economy and put business further in a hole.”
When Obama warned about the consequences of raising taxes, the economy was moving away from recession—growth in the fourth quarter of 2009 was nearly 6 percent. Today, however, economic growth has slowed to less than 2 percent. Even before the horrible June jobs report, economists were warning about the “substantial” possibility of a double-dip recession. Many others agreed after the news last week. “In addition to the shock value…we need to seriously question whether a double-dip is there,” David Ader, chief treasury strategist at CRT Capital, told CNBC. “I would say it’s back on the table.”
If raising taxes in a recession would be “the last thing you want to do,” wouldn’t raising taxes in a struggling economy teetering on a double-dip be the second last thing you’d want to do?
Obama made a similar argument in December, when he signed the bipartisan tax relief agreement – a deal that maintained Bush tax rates (even for the wealthy) and included additional tax breaks for businesses. “Millions of entrepreneurs who have been waiting to invest in their businesses will receive new tax incentives to help them expand, buy new equipment or make upgrades – freeing up other money to hire new workers.”
If Obama was right and the tax breaks in that deal freed up money for job creators to hire new workers, isn’t the reverse true? Isn’t it the case that new taxes on entrepreneurs and other job creators will leave them with less money to hire new workers? And wouldn’t raising taxes on the “wealthiest” just “put business further in a hole,” as Obama believed just two years ago?
His economics were right. So why the change?
A couple of months ago, The Standard publiushed a column by Victor Davis Hanson titled "Obama vs. Obama", about Zer0's conflicting statements on foreign policy. This is a different column, but the title could apply to any of dozens of pairs of 0bama policy positions.
The Republicans had better not fold on this.
NO NEW TAXES!!
NO TAX INCREASES!!!
CUT THE SPENDING!!!
ELIMINATE 0BAMAO-CARE!!
He’s out of money that’s why
“The Republicans had better not fold on this!”
If they do, what would most likely happen?
Just asking a serious question.
Thanks.
> If they do, what would most likely happen?
You and I will be paying more taxes when we can least afford it.
The people who buy our products or pay our paychecks will also be paying more taxes.
That means they will have to do more with less and you and I will lose business or perhaps even lose our jobs.
I think Obama would love to put the Republicans into another "read my lips" debacle. The tax increases will never result in another trillion in revenue. This is Obama playing politics imo.
Actually, Obama has been extremely consistent, over the years. His goal: REDISTRIBUTION.
He sees every crisis as a means to further his goal. Of course, his goal is shared by few of the electorate, so he must hide it. His only inconsistencies come from hiding his true agenda, not from pursuing it.
You guys and gals refuse to get it!!! POTUS Obama and his Democrat ilk is out to destroy the American economy and the nation of America with it. Every move he makes, foreign or domestic is planned to lull Americans into a false sense of trust and security. The exact opposite is true. Whether it is the economy, jobs Libya, Iraq, Afghanistan, Egypt, Israel, Yemen, The Sudan, etc., he positions the USA into a failing or in harm’s way stance as a motive & matter of his planned destroy America mantra. Too bad the American public is asleep at the wheel!!! Obama, you can fool some of us, but....not all of us!!! We are onto your game of America’s destruction!!!! Hopefully, November, 2012 will witness the end of your political career as the American people massively vote you and your cronies out of office!!!
I think Mark Halperin was right about both of them.
If I were going to increase taxes I would start with:. all the federal tax shelters and government (Federal, state local) subsidies given to the Government employees (particularly politicians), News and entertainment industries. Entertainment includes movies, television, all art forms (no non-profit organizations cover for “artists” and “news” providers.e.g., NPR, PBS, etc ), sports (including government funded/subsidized stadiums and forums).
Just dreaming.
Obama is an extortion king. We need to label it for what it is and quickly.
To the death!
Obama makes a critical decision....
Heads I win....
Tails you loose.
If the repubs fold they will have one less voter (speaking for myself). If a Rino is nominated I will stay home.
Thanks for the reply.
If the Repubs let the Democrats have their way, the Press will blame the Republicans for the increases in everything and other negative effects.
If the Repubs stand up and oppose the Democrats, the Press will blame the Republicans for the increases in everything and other negative effects.
So, what will the electorate do in the face of that?
They will of course vote Democrat because it’s always the Republican’s fault. (Thank you Mr. Alinsky.)
IMHO
Thanks for the reply.
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