House Republicans released an election-year budget on Tuesday that they said would cut $5.3 trillion in spending over the next decade compared to President Obama’s budget while slashing tax rates for households and businesses.
Rep. Paul Ryan (R-WI) has thrown down the gauntlet again:
The plan from House Budget Committee Chairman Paul Ryan (R-Wis.) would collapse the current system of six tax brackets for individuals into two marginal rates: 10 percent and 25 percent, according to GOP aides. The proposal would also lower the top corporate tax rate to 25 percent, and scrap the Alternative Minimum Tax.
Because “janitor” sounds so much like “Jew”
A couple of days ago, I posted that the Gang of Six Plan was about the best we could hope to get… now, prodded by a man whose economic wisdom far outstrips mine, I’ve decided to change my mind. Here’s what that man–Keith Hennessy–has to say in summary:
First I’ll flag a few things I like in the plan.
- I support making a technical correction to CPI, even though it would result in higher revenues.
- Repeal of the CLASS Act is great.
- It’s good they included medical malpractice reform.
That’s it. Others right-of-center are salivating at the low marginal income tax rates described in the plan, both for individuals and corporations. I think those low rates never materialize, for both arithmetic and legislative reasons, and explain why below.
Here’s the money–literally–quote, emphasis added:
“So, when you hear folks saying ‘Well, the president shouldn’t want massive job killing tax increases when the economy is this weak.’ Nobody’s looking to raise taxes right now. We’re talking about potentially 2013 and the out years.”
Sounds like he’s channeling Walter Mondale, who famously said:
Mr. Reagan will raise taxes, and so will I. He won’t tell you. I just did.
Admittedly, Obama stepped back from proclaiming that the GOP nominee–whoever he or she is–will raise taxes, but the rest of the statement rings pretty true.
How’d that tactic work for Mr. Mondale? Hmmm…
Score it Boehner 1, Obama 0.
“Despite good-faith efforts to find common ground, the White House will not pursue a bigger debt reduction agreement without tax hikes,” Boehner said in a statement Saturday. “I believe the best approach may be to focus on producing a smaller measure, based on the cuts identified in the Biden-led negotiations, that still meets our call for spending reforms and cuts greater than the amount of any debt limit increase.”
Boehner had initially backed an effort to pursue a comprehensive agreement said to include more than $4 trillion in budget savings over 10 to 12 years. His top lieutenant, Majority Leader Eric Cantor (R-Va.), had opposed the plan because, an aide said, it would include more than $1 trillion in tax increases that Republicans have ruled out.
Obama can’t seem to wrap his mind around the idea that when Boehner and Cantor say “no tax increases,” they mean it, and thus, everyone is back more or less to their starting positions.
For Obama, this is really bad news, because his starting position has the looming debt and spending problems squarely in the face of the public coming into the 2012 elections. Taking them out of the public eye is likely to boost his re-election prospects, but it’s beginning to look like it ain’t gonna happen.
Another blunder Obama has made is demanding new taxes in a struggling economy. His $1 trillion demand is actually $300 million more than the $700 million package known as the “Bush Tax Cuts,” which also makes it another broken promise by Obama and the Democrats… after all, they promised to leave the lower “Bush Tax Cuts” rates in place for two years, and that time isn’t up yet.
The White House is, of course, trying to spin it, but they have a real uphill battle on their hands… the public doesn’t want to send more of their hard-earned dollars to DC, and so Obama’s insistence on tax hikes is not going to play well at all. Even prominent lefties like Bono and John Kerry do all they can to avoid high taxation, even while hypocritically proclaiming that they support higher taxes for everyone else.
Lefties are also proclaiming that you can’t fix a budget shortfall without new revenues, but thanks to the Obamanomic economy, millions of Americans now have first hand experience with doing just that in their own household budgets, and the first step is to cut spending, another thing the Obamacrats refuse to do.
Boehner may have finally realized that he, not Obama, has the upper hand in these talks, especially with a solidly GOP House, which almost certainly won’t pass any tax hike deal. Let’s hope he continues to use it.
From the “do as I say, not as I do files” comes this entry from Claire McCaskill:
My colleague Dave Catanese reported last week that Senator Claire McCaskill, seven years before coming under fire for her use, and government reimbursement, of a private jet, ran a tough and successful campaign against the incumbent Democratic governor whose key points included … attacks on his use of a private jet.
Just more Democrat hypocrisy… “don’t vote for my opponent because of his private jet, but, hey, just ignore the fact that I have one myself… that I’m not paying the taxes on until I get caught at it.”
Hat Tip: HotAir