Obama economics = willful blindness
Obama outlined his economic policy yesterday on his campaign bus among (fawning) reporters. Apparently, his palns consist of ignoring proven principles and clinging to politically expedient promises of more class warfare (Wall Street Journal link);
Sen. Barack Obama shed new light on his economic plans for the country, saying he would rely on a heavy dose of government spending to spur growth, use the tax code to narrow the widening gap between winners and losers in the U.S. economy, and possibly back a reduction in corporate tax rates.
Um, a heavy dose of spending means a heavy dose of taxation.
He didn’t say how deeply he would cut the [capital gains tax] rate, but said it could be trimmed in return for reducing corporate tax breaks, simplifying the tax system. With existing loopholes, he said, “How much you pay in taxes as a corporation a lot of times is going to depend on how good your lobbyist is.” With “a level playing field,” he said, the rates could be reduced.
“Level playing field” is Marxist code for redistribution of wealth. The redistribution of misery.
He stressed the idea was not a move toward Sen. McCain’s broader tax-cutting philosophy. While Sen. McCain has argued that tax cuts — particularly on business — spur growth, Sen. Obama rejected that as flawed economics. “I’ve seen no evidence that…would actually boost the economic growth and productivity,” he said.
No evidence? In order to see now evidence of reduced taxation spurring growth you have to slam your eyelids shut and stick your fingers in your ears for the last three decades. Just between 2003 and 2006;
The New York Times was even admitted that the economy and tax revenues expanded after tax cuts;
An unexpectedly steep rise in tax revenues from corporations and the wealthy is driving down the projected budget deficit this year, even though spending has climbed sharply because of the war in Iraq and the cost of hurricane relief.
On Tuesday, White House officials are expected to announce that the tax receipts will be about $250 billion above last year’s levels and that the deficit will be about $100 billion less than what they projected six months ago. The rising tide in tax payments has been building for months, but the increased scale is surprising even seasoned budget analysts and making it easier for both the administration and Congress to finesse the big run-up in spending over the past year.
The unemployment rate dropped and has stayed low – well, until the Democrats raised the minimum wage and priced many young workers right out of the market.
So Obama’s economic plans are a mix of willful blindness and political rhetoric. That’s change you can believe in.
Category: Barack Obama/Joe Biden, Economy, Politics
