Share & Connect
President Obama unveiled his deficit reduction plan on Monday and his tone was widely different. Gone were the days of Obama holding out an olive branch to the Republicans. Obama, finally, took aim and fired.
In his plan, Obama clearly stated that millionaires and billionaires would have to begin to pay their fair share of taxes. He promised to veto any legislation proposed by the super congress that cut Medicare and did not include raising taxes for the wealthy. “This is not class warfare.
It’s math,” Obama declared, anticipating Republican criticism. He also called out Speaker John Boehner for his approach in earlier Bush tax cut debate. Boehner had stated that Obama would have to make some concessions. After concession after concession, Boehner and his party refused to budge, taking the same approach that they criticized Obama for taking.
The president’s proposal would focus on upper-income taxpayers, called the “Buffet Rule” after billionaire Warren Buffet has vocalized his low tax rate. The plan would also target tax loopholes and subsidies. Most of the cuts in Medicare would hit health care providers and not beneficiaries.
Although some benefit programs, including Medicare and Medicaid, however far less cuts that the GOP proposes. His cuts also include $1 trillion over ten years from the troop withdrawal in the Middle East.
The deficit-reduction plan represents Obama’s longer-term follow-up to the $447 billion in tax cuts and new public works spending that he has proposed as a short-term measure to stimulate the economy. The new proposal also inserts the president’s voice into the legislative discussions of a joint congressional “supercommittee” charged with recommending deficit reductions of up to $1.5 trillion.
Defending his emphasis on new taxes rather than only spending reductions, Obama said: “We can’t just cut our way out of this hole.” Republicans reacted exactly as expected. They used talking points about tax increases destroying jobs, but did not provide any real substance. Boehner said exactly as Obama thought so, calling it “class warfare.”
“Veto threats, a massive tax hike, phantom savings and punting on entitlement reform is not a recipe for economic or job growth or even meaningful deficit reduction,” said Senate Republican leader Mitch McConnell. “The good news is that the Joint Committee is taking this issue far more seriously than the White House.”
Sounds nice from the right, but it is wrong. There are easy charts and facts that show when we had a higher tax rate; we had a hell of a lot more jobs. So, I am not sure why Republicans keep up with this myth, but so many people believe it. Trust me—in the words of George Bush—read my lips—taxing the rich will NOT cause any job loss.
The rich have had this awesome tax cuts for 10 years, and we have just lost jobs. So, this rationale is illogical.