Obama Plans to Slash the Federal Deficit in Half
Hey America, watch me pull a rabbit out of my hat!
Tuesday night, February 24th, President Obama will address a joint session of Congress and is expected to lay out his plan to cut the federal deficit in half by the end of his first term.
This ought to be good. I’ll be parked in front of C-Span with my popcorn because this speech is guaranteed to be good for some laughs. I really want to know how the man who spent nearly a trillion dollars we don’t have earlier in the week thinks he can cut the deficit in half along with “plans to broaden health care coverage to eventually insure everyone. Moving the country toward greener energy sources. Expanding education opportunities. Overhauling financial industry regulation“.
I want to know how a man who a few short months ago said deficits don’t matter can now say “We can’t generate sustained growth without getting our deficits under control,” with a straight face.
It will all be just a lot of hot air, I’m sure since the plan rests “on the assumption that the economy recovers from the current slump” and does not consider “additional spending on economic stimulus or bailouts of the financial or other sectors“.
Where will the money come from? “Winding down the war” in Iraq, eliminating Bush’s tax cuts on families earning more than $250,000 a year (raising their tax rate from 35% to 39.6%), increasing the capital gains tax by 5%, closing corporate tax “loopholes” and taxing the earnings of hedge fund managers as normal income rather than as capital gains.
Not mentioned, of course, is that while “winding down” in Iraq, Obama is “winding up” in Afghanistan and Pakistan. Obama authorized 17,500 additional troops to Afghanistan just a few days ago and The Raw Story reported yesterday that Obama is expanding miliary operations in Pakistan.
There is also no mention of how businesses – especially small businesses – might be able to create jobs when suddenly faced with a much higher tax bill. Common sense says higher taxes will lead to more layoffs and more businesses closing down completely.
Obamanomics. It will make you laugh till you cry.