Pres. Obama Announces Debt Reduction Plan
Stop the presses, President Obama has a plan!
While the details – as always – will be released later, those close to the President say that it will include $3 trillion in debt reduction over 10 years. Half will, of course, come from tax hikes – but don’t worry, those tax hikes are just a campaign promise: re-elect President Obama, and see your taxes go up in 2013. Great slogan.
Conservatives, naturally, still oppose tax hikes, especially in a poor economy. And that poor economy is expected to persist through 2014, after these tax hikes go into effect. The CBO estimates the unemployment rate to be above 8% through 2014, so how will taxing job creators help that?
The President and liberals can claim that the wealthy and corporations need to “pay their fair share” all they want, but it doesn’t hold any water. Considering the top 10% of earners (those making $114,000 or more a year) paid roughly 70% of all taxes last year, it’s pretty clear they are paying more than their fair share.
His plan also cuts doctor’s Medicare payments again. These will probably be ignored in the future with a doc fix, but even suggesting it brings back the argument of health care rationing for Medicare patients. We already see it with Medicaid. How many times do we have to tell the President that if doctors get paid less to see Medicare patients they won’t want to accept them? He’s had nearly 3 years of on the job training, how much longer until he learns how the economy works?
His debt reduction (aka tax hike) plan includes:
- $248 billion in Medicare cuts (doctors payments)
- $72 billion in Medicaid cuts
- $800 billion from expiring the Bush Tax cuts (aka huge tax hike on job creators)
- $400 billion from limiting charitable contributions for the “wealthy”
- Closing tax breaks for oil and gas companies (even though other industries get them)
- Closing corporate jet tax breaks (target much?)
- Closing loopholes for investment fund managers (think George Soros will get an exception?)
- $1 trillion in assumed savings from winding down the wars
- $180 billion in cuts to other mandatory programs (not yet defined)
Liberals are no doubt pleased with this rehash of ideas. It barely affects entitlements (the largest drivers of the debt by far) and heavily taxes job creators, what could be better?
How will this measure up to the Republican plan to lower tax rates, reform entitlements, cut spending and regulations in order to grow the economy? Well, they had a plan that did all of these things, the Ryan budget. Oh wait, they’ve abandoned that. Earlier this year, the Ryan Budget was a blue print for conservatives on how to get the economy moving again, but now:
“Fast forward just four months later, and many of those same people are walking away from Paul Ryan’s budget, which they ‘fully support[ed]’ and claimed ‘set the bar in terms of the kind of targets that we need to meet.’”
We know that President Obama’s plan is terrible for an economy that just can’t seem to get moving. The President can’t think of any ideas aside from the same failed-policies he’s been trying the past two and a half years, policies which have led to 9.1% unemployment and record deficits three fiscal years in a row.
Now is the time for conservatives to set clear lines – like the Ryan Budget – and show not only where they stand, but also that they are committed to the conservative principles of lower spending and taxes.