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: 8
- Strategery: A war by any other name - 20
- Freeh dumb: Favoritism in Vt.? - 5
- Public be damned: Litchfield latest example - 2
- NH's 9/11 victims: We cannot forget - 0
- Celebrating Stark: And America, in Manchester - 0
- NH's Obamabots: Taking their cues from party bosses - 57
- Spending & voting: MayDay's wasted money - 5
- For the NH GOP: Two new stars - 13
- 9/11 memories revived: 'A quiet, unyielding anger' - 8
READER COMMENTS: 0
- Bella, a chihuahua mix, is still missing in Auburn - 0
- Nashua man charged in domestic knife threat - 0
- Manchester man detained on Nashua rape charges involving child - 0
- Pair accused in Hampstead home invasion also face witness tampering charges - 0
- Suicide car bomber kills 3 foreign troops in Afghan capital; Taliban claims responsibility - 0
- City officials to review proposed 'spice' ban - 0
- Widow of chiropractor killed this summer says fatal shooting was no accident - 0
- Manchester's Delana Curtis is left out in the cold - 0
- Another View -- Sharon Day: The Democrats' claim to be the party for women is just not believable - 11
DWI license revocations
Mexican man pleads guilty in international conspiracy to traffic hundreds of pounds of cocaine
Another View -- Sharon Day: The Democrats' claim to be the party for women is just not believable
Strategery: A war by any other name
Freeh dumb: Favoritism in Vt.?
Seabrook mom pleads not guilty by reason of insanity to attempted murder of her two children