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View Full Version : Obama WSJ take on the "Obama Plan"


HonestChieffan
04-14-2011, 06:51 AM
Any hope for a faster recovery from the recession was dashed on the rocks by Obama's speech. Business cannot be expected to move with expansion when they have the uncertainty hanging over the economy and a President who proposes to take more money out of the hands of small business with his tax proposal and the continued threat of ObamaCare. When he had the opportunity to really move forward and lead, he regressed.

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The Presidential Divider
Obama's toxic speech and even worse plan for deficits and debt.

Did someone move the 2012 election to June 1? We ask because President Obama's extraordinary response to Paul Ryan's budget yesterday—with its blistering partisanship and multiple distortions—was the kind Presidents usually outsource to some junior lieutenant. Mr. Obama's fundamentally political document would have been unusual even for a Vice President in the fervor of a campaign.

The immediate political goal was to inoculate the White House from criticism that it is not serious about the fiscal crisis, after ignoring its own deficit commission last year and tossing off a $3.73 trillion budget in February that increased spending amid a record deficit of $1.65 trillion. Mr. Obama was chased to George Washington University yesterday because Mr. Ryan and the Republicans outflanked him on fiscal discipline and are now setting the national political agenda.

Mr. Obama did not deign to propose an alternative to rival Mr. Ryan's plan, even as he categorically rejected all its reform ideas, repeatedly vilifying them as essentially un-American. "Their vision is less about reducing the deficit than it is about changing the basic social compact in America," he said, supposedly pitting "children with autism or Down's syndrome" against "every millionaire and billionaire in our society." The President was not attempting to join the debate Mr. Ryan has started, but to close it off just as it begins and banish House GOP ideas to political Siberia.

Mr. Obama then packaged his poison in the rhetoric of bipartisanship—which "starts," he said, "by being honest about what's causing our deficit." The speech he chose to deliver was dishonest even by modern political standards.

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The great political challenge of the moment is how to update the 20th-century entitlement state so that it is affordable. With incremental change, Mr. Ryan is trying maintain a social safety net and the economic growth necessary to finance it. Mr. Obama presented what some might call the false choice of merely preserving the government we have with no realistic plan for doing so, aside from proposing $4 trillion in phantom deficit reduction over a gimmicky 12-year budget window that makes that reduction seem larger than it would be over the normal 10-year window.

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Bloomberg News
Mr. Obama said that the typical political proposal to rationalize Medicare's gargantuan liabilities is that it is "just a matter of eliminating waste and abuse." His own plan is to double down on the program's price controls and central planning. All Medicare decisions will be turned over to and routed through an unelected commission created by ObamaCare—which will supposedly ferret out "unnecessary spending." Is that the same as "waste and abuse"?

Fifteen members will serve on the Independent Payment Advisory Board, all appointed by the President and confirmed by the Senate. If per capita costs grow by more than GDP plus 0.5%, this board would get more power, including an automatic budget sequester to enforce its rulings. So 15 sages sitting in a room with the power of the purse will evidently find ways to control Medicare spending that no one has ever thought of before and that supposedly won't harm seniors' care, even as the largest cohort of the baby boom generation retires and starts to collect benefits.

Mr. Obama really went off on Mr. Ryan's plan to increase health-care competition and give consumers more control, barely stopping short of calling it murderous. It's hardly beyond criticism or debate, but the Ryan plan is neither Big Rock Candy Mountain nor some radical departure from American norms.

Mr. Obama came out for further cuts in the defense budget, but where? His plan is to ask Defense Secretary Bob Gates and Joint Chiefs Chairman Mike Mullen "to find additional savings," whatever those might be, after a "fundamental review." These mystery cuts would follow two separate, recent rounds of deep cuts that were supposed to stave off further Pentagon triage amid several wars and escalating national security threats.

Mr. Obama rallied the left with a summons for major tax increases on "the rich." Every U.S. fiscal trouble, he claimed, flows from the Bush tax cuts "for the wealthiest 2%," conveniently passing over what he euphemistically called his own "series of emergency steps that saved millions of jobs." Apparently he means the $814 billion stimulus that failed and a new multitrillion-dollar entitlement in ObamaCare that harmed job creation.

Under the Obama tax plan, the Bush rates would be repealed for the top brackets. Yet the "cost" of extending all the Bush rates in 2011 over 10 years was about $3.7 trillion. Some $3 trillion of that was for everything but the top brackets—and Mr. Obama says he wants to extend those rates forever. According to Internal Revenue Service data, the entire taxable income of everyone earning over $100,000 in 2008 was about $1.582 trillion. Even if all these Americans—most of whom are far from wealthy—were taxed at 100%, it wouldn't cover Mr. Obama's deficit for this year.

Mr. Obama sought more tax-hike cover under his deficit commission, seeming to embrace its proposal to limit tax deductions and other loopholes. But the commission wanted to do so in order to lower rates for a more efficient and competitive code with a broader base. Mr. Obama wants to pocket the tax increase and devote the revenues to deficit reduction and therefore more spending. So that's three significant tax increases—via higher top brackets, the tax hikes in ObamaCare and fewer tax deductions.

Lastly, Mr. Obama came out for a debt "failsafe," which will require the White House and Congress to hash out a deal if by 2014 projected debt is not declining as a share of the economy. But under his plan any deal must exclude Social Security, Medicare or low-income programs. So that means more tax increases or else "making government smarter, leaner and more effective." Which, now that he mentioned it, sounds a lot like cutting "waste and abuse."

Mr. Obama ludicrously claimed that Mr. Ryan favors "a fundamentally different America than the one we've known throughout most of our history." Nothing is likelier to bring that future about than the President's political indifference in the midst of a fiscal crisis.

http://online.wsj.com/article/SB10001424052748703730104576260911986870054.html?mod=WSJ_Opinion_LEADTop

The Mad Crapper
04-22-2011, 01:28 PM
Hopey Change™

Jaric
04-22-2011, 01:36 PM
He has a plan?

KC Dan
04-22-2011, 01:38 PM
He has a plan. Raise taxes on the job creators and continue spending while he campaigns 24 hrs a day

ROYC75
04-22-2011, 03:51 PM
He has a plan. Raise taxes on the job creators and continue spending while he campaigns 24 hrs a day

Liberals like the way you type. :D