- The President is not, as he claims “proposing real, serious cuts in spending.” His proposals would result in a tiny net reduction in spending: -$86 B over 10 years. Almost all of the spending cuts for which he wants to claim credit have already been enacted or accounted for. Almost all the new spending cuts he proposes would be used to offset higher spending in his Jobs bill proposal and for more Medicare spending on doctors.
- The President is proposing about $1.5 T in higher taxes over ten years, offset by about $250 B of tax relief, for a net tax increase of almost $1.3 T.
- Almost all of the President’s new proposed deficit reduction comes from tax increases
And it appears of those tax increases will focus on rich people. It's actually a pretty smart move politically. Obama can tax rich people (as the majority of Amercians support) to pay for what he calls a "jobs" bill. The GOP is already being viewed as obstructionists. Obama can allow them to obstruct job creation and at the same time pin Republicans as publically favoring rich people. That's nothing new, but it's politically smart if he doesn't cave and plays hs cards right.
P.S. I'm not for tax increases on anyone right now, but if you're going to tax, tax rich people. It'll do the least damage to AD.
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