Obama budget to raise taxes, crush economy
The debt will equal the GDP by September of this year. Senator Sessions reminded America that this is Obama’s final opportunity to change the course from unsistainable spending to fiscal responsibility.
By Michael Whipple, Editor usACTIONnews.com
Earlier the International Monetary Fund projected that the US debt would reach its GDP in 2015. New estimates show that it happens in September of this year.
The amount of spending cuts being debated amount to less than 1.5% of spending.
Obama’s ideologically driven tax policies will do nothing but exacerbate the problems.
Obama’s new budget will be another record setter at $1.6 TRILLION. Alan Greenspan said “Deficit spending is simply a scheme for the confiscation of wealth.” As Obama said, his plan is to “spread the wealth around” and therefore he must first confiscate it.
When it was pointed out to Obama that raising the capital gains tax would actually lower revenues he replied that he would raise the capital gains tax ‘for purposes of fairness’. He also blamed higher debt under Bush for ‘helping undermine our economy’.
The same is true of corporate taxes. Studies show that higher corporate tax rates actually reduce revenues. Kevin Hassert at Bloomberg.com points out that “corporate taxes “are the most harmful type of tax for economic growth,” according to a November 2010 report by the Organization for Economic Cooperation and Development.”
An exhaustive report by The Heritage Foundation shows that presidents Coolidge, Kennedy and Reagan all created robust economies and increased revenues by cutting taxes.
Senator Sessions does not seem optimistic that Obama’s budget will provide the requisite leadership in reducing spending:
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