Home » Opinion » Editorials
Rates and revenue: Obama's strange obsession
President Obama's fixation on raising the official tax rate on Americans with incomes of more than $200,000 a year borders on the pathological. Financially, it makes no sense. There are better ways to stimulate the economy, reduce the debt and balance the budget. But Obama is determined to force higher tax rates on higher-income Americans regardless of the effects on the budget or the economy.
"There can be no deal without rates on top earners going up," White House Spokesman Jay Carney said last week. "There's not going to be an agreement without rates going up," Treasury Secretary Timothy Geithner said on CNN on Sunday.
But raising rates does not necessarily raise federal revenue (see Thomas Sowell's column on this page). And Republicans have offered a plan that would raise $800 billion in revenue without raising rates. Based on a proposal from Democrat Erskine Bowles, it would reduce loopholes that allow richer Americans to avoid paying the higher rates already on the books.
Obama rejected it. A White House spokesman said it wasn't "balanced." It reportedly raises revenues by $800 billion and shaves spending by $1.4 trillion. Obama's offer raises taxes by $1.6 trillion, trims entitlements by $400 billion, cuts another $110 billion and adds $50 billion in new spending. There's a $600 billion gap between new revenues and spending cuts in the GOP plan, and a $1.04 trillion difference in Obama's plan. What's that about balance?
Balance is not what Obama wants. He wants total ideological victory over the Republican Party. For that, he is willing to risk plunging the country into another recession.
READER COMMENTS: 2
- Charles M. Arlinghaus: Taxation without representation again? - 3
- Another View -- Betsy McCaughey: Our free lunch President - 3
- Another View -- Karlyn Borysenko: Workplace bullying is a serious problem, governor - 1
- Another View -- Fred Hiatt: Disengage from the world, and this is what happens - 1
- David Harsanyi: Are teachers really underpaid? - 10
- Jonah Goldberg: The U.N. club needs higher standards - 0
- Another View -- Mike Biundo: Where is Shaheen's gas price outrage now? - 20
- Deroy Murdock: What if Gaza were San Diego instead? - 1
- Another View -- Jayne Millerick: Dems scaring women by misleading them on contraception - 55
READER COMMENTS: 0
- Havenstein says he has always opposed Obamacare, though company he led was paid to implement parts of it - 0
- Some sex assault charges dismissed against former Nashua coach - 0
- Jury deliberating in Plaistow lawyer’s sex assault trial - 0
- Meriam Ibrahim, Sudanese family arriving in Manchester tonight - 1
- Pembroke couple recovering from injuries in Dixville ATV crash - 0
- Patriots Notebook: Physical Browner brings it - 0
- Heroes all? A word cheapened by overuse - 5
- City Matters: Market Basket workers' outlook challenges the skeptics among us - 2
- Punch line: The NFL blows it - 2
Canobie Lake Park shuts down popular ride
Supporters are now 'Abby Strong'
Dover man sought in Rochester shooting
Heroes all? A word cheapened by overuse
Mark Hayward's City Matters: Market Basket workers' outlook challenges the skeptics among us
Punch line: The NFL blows it
Havenstein says he has always opposed Obamacare, though company he led was paid to implement parts of it
George Will: A conservative internationalism