There he goes again. More than six months after surrendering to Republican demands that this isn’t the time to raise taxes on a weak, jobless economy, President Obama is peddling the same old snake oil medicine of higher taxes again.
In December, after Republicans crushed the Democrats in the mid-term elections, largely on economic issues, Mr. Obama suddenly changed his tune and agreed to extend all of former President George W. Bush’s tax-rate cuts for another two years, including the top rates for the richest taxpayers. The argument that raising income taxes when the economy was on life support turned out to be a clear political winner for the GOP, even drawing support from Democrats in Congress.
Now, seven months later, with the U.S. economy weaker than it was in December and job growth virtually at a dead halt, Mr. Obama is saying that the solution to our fiscal and economic troubles is to raise taxes on investors, employers and big corporations.
What planet is the president living on? At one point in his Monday news conference, he said it was fair to tax more income from the wealthy because they don’t “need it” and poor people do. Where did he learn this school of economics? To each according to his needs? Where have we heard that one before?
At another point in his news conference, he said wealthier people were not paying their “fair share” of the nation’s income taxes. But the Congressional Budget Office said earlier this year that the richest 20 percent of Americans pay 86 percent of all federal income taxes.
One has to ask how closely Mr. Obama studied the U.S. Bureau of Labor Statistics’ June jobs numbers that came out Friday. That report, a snapshot of the economy at the halfway point in the third year of his presidency, stunned the White House, sent shock waves through the financial markets and deflated any hope the economy is going to rebound before the 2012 elections.
In a nation of more than 300 million people, the Obama economy added a pathetic 18,000 jobs to payrolls in June, less than a fifth of what administration economists had expected and nowhere near what is needed to cut unemployment down to normal levels in this decade. That pushed the jobless rate up to 9.2 percent, while previous job growth was revised downward by a combined 44,000 jobs for April and May. The economy is creating fewer jobs than the government said it was.
Making matters bleaker, temporary employers slashed 12,000 jobs, while about 272,000 discouraged Americans stopped looking for work.
If you count the unemployed, workers forced to take just part-time jobs and Americans who have dropped out of the workforce, the real unemployment rate climbed last month from 15.8 percent to 16.2 percent.
Curiously, the economy isn’t getting mentioned much in the stalled three-way negotiations between the White House, Republicans and the Democrats over how to bring down the $1 trillion-plus deficits and a nearly $15 trillion debt.
The national news media, parroting the White House line, blamed the impasse on GOP ideologues and tea party-backed lawmakers for stubbornly opposing any tax increases in a budget- cutting deal to raise the debt limit.
But the Republicans’ economic policy is no different now than it was last year when Mr. Obama reluctantly bought into it: You don’t raise taxes in a critically weak economy that is still struggling to climb out of a de facto recession.
Yet this is the dismal anti-growth, anti-jobs policy Mr. Obama and the Democrats are urging that we adopt by raising taxes on anyone who earns more than $200,000 a year and ending a sea of business tax breaks that will only increase the tax burden on the one sector of our economy that creates most of the jobs.
The focus in the government’s current debt crisis is justifiably on bringing down the rate of spending. But it must also be on boosting economic growth above the anemic 1.9 percent growth rate under this administration’s failed policies. That’s going to require new tax incentives to unlock capital investment, encourage new start-up firms and expand export markets.
Mr. Obama, who didn’t want to get into this budget battle until it was late in the game, is operating from a position of strategic weakness on two sides. The Democrats won’t vote to reform Social Security and Medicare. That’s the only issue they’ve got heading into 2012.View Entire Story
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'Your papers, please' must never be heard in America
By Susan Crabtree - The Washington Times
President Obama forgot to return the salute of a U.S. Marine while boarding Marine One Friday morning, then came back out to shake the Marine’s hand, according to a tweet by CBS News’ Mark Knoller.