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: 1
- Turkey Bowl brawl: Central players suspended, no discipline for Trinity team - 5
- John Stark's 'We the People' gears up for civics competition - 0
- MCC students get hands-on experience building Manchester home - 0
- Manchester board holds off seeking $22m for building projects - 0
- Nashua survey reveals class sizes as major issue - 1
- Young teacher puts education in motion - 1
- New UNH logo draws mixed reactions - 12
- Nashua school board approves changes in design, hospitality, music programs - 0
- Claremont seeks alternatives to demolishing Stevens High School stage - 0
READER COMMENTS: 0
- Bow man robbed after leaving Manchester YMCA - 0
- Police say Keene robbery victim was targeted through online dating site - 0
- Keene police investigating attempted robbery at grocery store - 0
- Nashua teacher contract ratified - 0
- College roundup: Local men's teams go 3-0 for the night - 0
- Girls basketball: Derryfield, Bow girls' teams win - 0
- Hollis teen mourned after fatal crash on turnpike - 1
- LGC subsidiary accused of violating its own bylaws - 0
- PSNH on defense over scrubber cost 'escalation' - 3
Exeter drug sweep nets four
Where is Benghazi? Kuster's refusal to stand
Shea-Porter: GOP ad about ACA in NH is false
Bird blenders: 'Green energy' sacrifice