Obama: "Yes" to Higher Taxes, "Meh" to Spending Cuts
There has been a lot of chatter about Barack Obama's recent interview with CNBC's Maria Bartiromo in which he called for a near doubling of capital gains taxes. But I also thought this part was interesting, where Obama talked about possible spending cuts:
Oh, you know, there are probably some weapons programs that I think are not serving our national security interests that need to be examined, and we've got to do an audit there. There are reforms that need to be made in our purchasing processes, where—simple things, you know. If we actually made sure that every government employee had a single, you know, debit card or credit card, then negotiated with large purchasers to get the discounts that any other large purchaser would get, we could lop off 10 percent of some of our major purchases by the federal government. Our travel allowances and expenses are a major problem. We could save several billion dollars just in how we set up government travel. So there are a whole bunch of areas where we can make some significant savings.
My take: In a $3 trillion federal budget, that's it, that's all the fat—just defense and some procedural changes. How about limiting discretionary spending growth to inflation minus 1 percent or such? Oh, and on the subject of taxes, don't think Obama will wait until the 2001 and 2003 tax cuts expire in 2010. As this piece of political analysis from JPMorgan Chase points out:
Is it possible to repeal Bush tax cuts before 2011? Yes! The Democrats have not been able to touch the tax cuts as the Republicans have had two lines of defense. First the Republicans with 49 members of the Senate have more than enough votes to sustain a filibuster that can continue with as few as 41 Senators. Secondly, the President has the votes to sustain any veto should Congress pass a repeal of his tax cut initiatives. However, if there is a Democratic presidential victory this year, there is a way the cuts could be changed in 2009.... What if Obama or Clinton wins? Opposition to the Bush tax cuts, especially those favoring the wealthy, has been a linchpin in Democratic political rhetoric. Furthermore, both Democratic presidential candidates are committed to working with the Democratic Congress on large spending programs ranging from health insurance to infrastructure projects and education.... To fund some of these programs, I think the chances are very high that some of the revenue will come from a Reconciliation Bill that increases the top rate back to 40%, has the capital gains tax revert back to 20% and increases the current 15% rate on dividends.
Tags: taxes | federal budget | Barack Obama | federal spending
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Reader Comments
Jeanette of MA...
Did you even read the article? Holy crow!!!
She is from Ma. it does not matter
People in Ma. are not interesting in facts or logic, I know, I live here. They only vote Democrate just look at who they elected for Gov, another CHANGE and HOPE Candiate that has no experience running anything, liberal feel good politics and will sell out the state and country as long it meets his needs. They think the Government can spend your money better than you can....And if that does not prove to you how crazy people from Ma are when it comes to electing thier reps in Gov, just look at Kennedy, Kerry and the jokes they have for reps.... The democrates and Republicans now buy your votes with your own money. May God help us!
Obama
He is the same old tax and spend dimicrat, that part of him has yet to be exposed.
hussein obamas change
you never hear a distinct remark about his change. what has he changed, since he becme a senator???? i would like some change for those on welfare.who have babies free and checks afterwords.put them to work,so they have less time to make babies.would that be change ???
Barack is just making things up as he goes.
I don't think Barack has thought about the economy (or anything else?), I hope he isn't just stupid. I don't see how people can feel that he can lead our nation.
Sure, his minister is a racist, no wonder his wife is miserable. If you go to that church to get spiritually renewed, you don't come home with any spiritual renewal.
The scary thing is that his problem is not the minister, the problem is that Barack is not capable of leadership.
barack
This man is such a light-weight....inarticulate to boot (guess the "great oratory" is written by someone else and put on the teleprompter). His response is riddled with "you knows" and no meat. Does he even understand basic theories of economics? Where's he been for 20 years that he doesn't know tax cuts PRODUCE revenue and hikes CUT revenues? Does he even realize that MOST Americans own stock, via pension plans or 401K's or own homes which appreciate, thus jacking up the cap gains rate will HURT the economy? Wow..what a maroon!
"The only good thing Hillary ever said I quote "It takes a village to raise a child" which i totaly agree with."
The village better keep it's hands off my children.
"But being a child advocate won't get you into the white house."
That's right, because no body cares about the children. It's not like anyone would ever vote for something that they thought would benefit thier children. That would be absurd, right?
Did it ever occur to you that maybe most people don't consider what passes for 'child advocacy' to be actually good for the children?
"I had my say."
Yes, you did. And the sad thing is that you probably don't wish you could unsay it.
Obama's Budget
So Obama's got an economic pastor as well ... his name is Rev. Dhimmi Carter. No wonder Matthews has a tingling in his leg.
Disillusionment
There is a tremendous need to create more disillusionment with the federal government. In that regard Obama is the best poltician to happen in years.
He just might get us to a trend reversal in domestic policy, as Bush hopefully has with foreign policy.
Bush has been a terrible president, but these two democrats wold be much worse. All the things you dislike about Bush, such as a rampant foreign policy, will be worse under the Democrats. Remember Clinton's meals-on-wheels foreign policy that saw us bombing civilians all over the world and committing troops to decades long occupations? Obama will be worse; he won't get out of Iraq, but he will send US troops and funds (nearly 1 trillion dollars currently proposed) into Africa, probably under UN authority (like under Clinton our military will be wearing blue helmets and taking orders from corrupt UN dictators). Domestically Obama and Clinton will, like Bush, further bloat the federal government with new initiatives that are supposed to help the poor (remember Bush's prescription drugs?) but instead merely rob the people of their property to line corporate interest pockets. So a vote for Clinton or Obama is a vote for Bush's third term.
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Barrack Obama
I think the people of this great country need a new face in the government. Not the same old people with the same old ideas. I think his pastor is wrong for someone who is suppose to be a man of God. If he think that is the way God thinks, he has alot of explaining to do, when judgement day comes. As for Mr. Obama, it doesn't look good for him to go to the same pastor for 20 or so years, knowing he is a racist. z still think if he keeps a good head and faith, he will do great things for this country. Obama wants to stop this grave mistake called war. Bush is also going to have to talk to his maker and explain his vengence. I am a white female and with a new face, it will not only make history, but I hope he can bring our children home. We need to prove to other countries that we are not trying to take over the world. I compare Bush to Hitler. McCain wants to put more troops in Iraq. There have been already over 4,000 deaths and that is just american soldierrs. They are fighting a war that should have never been. We should have been looking for Osama Binladen instead of invading Iraq. Bush never thought this out and lied to everyone on why we were there. Hillary has been in the White House and has the same old policies as when her husband ran this country. The only good thing Hillary ever said I quote "It takes a village to raise a child" which i totaly agree with. But being a child advocate won't get you into the white house. I had my say. I am voting for Barrack Obama and I hope he makes the correct choices.
Mar 28, 2008 17:53:36 PM [permalink] [report comment]