Obama Wants $1.5 Trillion in New Taxes


Oh, this is sure to help the struggling economy. President Obama is going to unveil another deficit reduction plan, including plenty of new taxes and the Buffett Rule, but no entitlement reform. The Washington Post says the plan draws contrasts with the Republican vision. Talk about an understatement.

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President Obama on Monday will unveil a plan to tame the nation’s rocketing federal debt that will draw a sharp contrast with the Republican vision and amount more to an opening play in the fall’s debate over the economy than another attempt at finding common ground with the opposing party.

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The president will propose $1.5 trillion in new taxes as part of a plan to find at least $3 trillion in budget savings over a decade, according to a person familiar with the matter. Combined with his call earlier this month for $450 billion in new stimulus, the proposal represents a more populist approach to confronting the nation’s economic travails than the compromises he advocated this summer.

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Obama will propose new taxes on the wealthy and a special new tax for millionaires, according to White House officials. But he won’t call for any changes in Social Security, officials say, and may seek less-aggressive changes to Medicare and Medicaid than previously considered. In particular, people familiar with the matter say he is unlikely to call for an increase in the Medicare eligibility age from 65 to 67.

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Don’t worry, there’s not a snowball’s chance in hell of this thing passing the House. Paul Ryan made that pretty clear this morning.

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“Class warfare may make for really good politics, but it makes for rotten economics,” Rep. Paul Ryan (R-Wis.), chairman of the House Budget Committee, said on “Fox News Sunday.” “It adds further instability to our system, more uncertainty, and it punishes job creation.”

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This isn’t an economic plan, it’s a campaign slogan. And none of the $3 trillion in “savings” he proposes will be cuts to the budget. I’ve said it before, and I’ll say it again: If Obama was really serious about cutting the deficit, he would call for eliminating baseline budgetingIt’s a total scamspending cuts are nothing but reductions in automatic spending increases. But he won’t tell you that.

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