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: 0
- Pat Buchanan: China has begun prowling Asia like a hungry tiger - 1
- Thomas Sowell: Victimhood and race - 3
- Fred Hiatt: While Obama talked, Assad killed - 4
- Ramesh Ponnuru: Why the latest corporate tax cut plan won't work - 1
- Aidan Connell: Manchester Central educated this Hooksett student very well - 11
- Deroy Murdock; Fracking is 'greener' than environmentalists want to admit - 9
- Margaret Carlson: Is Obamacare challenging enough yet for President Obama? - 4
- George Will: Scott Walker, action figure governor - 1
- Charles Krauthammer: An outbreak of lawlessness - 1
READER COMMENTS: 0
- Convicted drug dealer arrested in Nashua on more drug charges - 0
- Former Plaistow finance director charged with theft - 0
- Police: Laconia man threatened harm to toddler - 0
- Hooksett officer struck by motorist - 1
- UPDATE: Thornton woman dies after being struck by car in Campton - 0
- Sen. Ayotte pushes for bigger broadband bang for buck - 0
- Somersworth man dies in head-on crash with car driven by Dover City Councilor Michael Weeden - 1
- Hanover’s Grabill named top regional soccer coach - 0
- Londonderry's Aliza Simpson chooses UNH for basketball - 0
Somersworth man dies in head-on crash with car driven by Dover City Councilor Michael Weeden
Ex-Tyco CEO granted parole
What Congress? Obama's 'easy way out'
Boy wounded by bullet was to be released
John DiStaso's Granite Status: Scott Brown cites NH as example of Obamacare 'trainwreck,' will keynote NHGOP event
Thomas Sowell: Victimhood and race