Once a doctrinaire Leftist, always one I suppose. I mean, why change now when things are going so well?
A few details of the president's new plan have come to light, and as I said after his initial speech, it's a warmed over 'stimulus' designed to reward his political allies and beat the class warfare drum.
Out of the proposed $447 billion the president wants Congress to authorize, over $412 billion comes from tax increases - oh, pardon, 'new revenues' in Democrat Newspeak.
The big hit, of course, comes from eating the rich. Anyone with a gross income of over $200,000 or more per year is no longer going to be able to itemize deductions, including those for home-mortgage interest, state and local property taxes and charitable donations. The White House claims that's going to raise roughly $400 billion over 10 years.
Such a lovely proposal..eat the rich! Unfortunately, since those people are also the ones mostly doing the hiring and investing, it's not going to do any wonders for creating employment or actually expanding the economy, which is what actually leads to larger government revenues.
It will lead to less orders from businesses, especially small businesses. The housing market will sink even further into the doldrums, as those 'rich' people who can dump their houses and become renters. it will severely impact charitable giving. It will devastate the auto business and the equipment leasing business, since there's no percentage in doing that anymore unless it's an unavoidable necessity. And it will lead to higher prices across the board as the 'rich' who stay in business figure in the new tax increase- because that's exactly what it is - into what they charge for goods and services, which of course means less sales as people who still have jobs buy less.
In short, it's exactly the sort of idiocy one would expect from a none-too-bright wanna be academic with no actual experience in these matters.
As an added bonus, all these wonderful proposals are set to go into effect in 2013, after the election, which gives people the opportunity to participate in the mother of all selloffs of stocks, real estate, and bonds. That will do things to the markets reminiscent of the old limbo game - 'how low can you go?'
Of course, the president knows full well that the GOP House is going to reject most of this horse manure. In fact, he's counting on it, because he intends to run against Congress.
"We've got to decide what our priorities are," the president said today at the White House. "Do we keep tax loopholes for oil companies, or do we put teachers back to work? Should we keep tax breaks for millionaires and billionaires, or should we invest in education and technology and infrastructure?"
Exactly..another bogus stimulus, with the idea that those Evil Tea Party Republicans are choosing tax breaks for billionaires and those horrible oil companies over jobs for America's unemployed.
A simple minded appeal to the class warfare mob and the sort of people who still think President Obama is the smartest president ever.
Like PT Barnum famously said, there's one born every minute.
*sigh*
As an income tax accountant amd a CPA, I can tell that eliminateing itemized deductions for those making over 200,000 will devestate the economy and will result in lower tax revenues than what are currently received. Fewer people will buy large houses and fewer amounts will be given to charity. This will adversely affect those people who work in construction and it will adversely impact those who depend on charity. Its negaative effects accross the whole economy would be devestating. I just hope and pray the American people can see this.
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