Obama’s Debt Plan: $7 in New Taxes for $1 in Spending Cuts

Written on:September 23, 2011
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Arizona Republic columnist Bob Robb has written one of the clearest explanations of the “math” involved in Obama’s debt proposal:

So, Obama actually is proposing over $1.7 trillion in additional federal revenue, making the ratio $4 in increased taxes and fees for every $1 in spending cuts.

But that still doesn’t tell the whole story. Obama, of course, is proposing increased stimulus spending now. Net, Obama is only proposing to decrease actual federal spending by about $245 billion over 10 years. So, the real ratio is $7 in increased taxes and fees for every $1 in actual spending cuts.

In short, Obama has proposed a massive tax increase while doing very little to control federal spending.

That’s bad enough, until you think about how this sort of “grand bargain” usually works out in the Washington game. As James Valvo, one of our AFP policy wonks explained to me, “The tax hikes would bite immediately and the spending cuts would supposedly come across a ten-year window. We’ve seen this play out in the past. The spending cuts never materialize because the next Congress doesn’t honor them.”

Read the rest of Robb’s article here:

For Liberty, Tom

Tom Jenney
Arizona Director
Americans for Prosperity
(602) 478-0146

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