According to the Washington Post, Obama will release his budget this week. He claims his budget will cut the deficit in half by in the next four years! Wow, that is quite ambitious, and completely unrealistic! His budget will do the exact opposite. He is preaching fiscal responsibility and limiting or cutting governmental spending. BUT…this is the same President that pushed for and signed the “Spendulous” Bill. Where is the intellectual honesty? This is just plain hypocrisy.
With this budget, he is breaking more campaign promise. He said he would cut taxes of 95% of Americans. Well…he is NOT. He raising them by default by allowing the Bush tax cuts to expire. He never set in stone what he would raise the capital gains tax. Well, he has now—he is raising it from 15% to 20%.
The results from raising government spending, debt, and raising taxes has been tried before. It did not work for Clinton, FDR and others. It eventually rapes the American economy of its much needed capital. The net result will be that economy will lose its greatest resource, the cash capital of all Americans—not just the rich, but all of us. This results in an eventual slowdown and a deeper recession or even depression.
This is exemplified during the Clinton years. The G.H. Bush tax increase slowed the economy by the end of Bush’s tenure and in the beginning of Clinton’s. A recession that helped Clinton get elected. Then, the recession G.W. Bush dealt with was the result from Clinton’s tax increases. Sometimes tax policy has an immediate effect while other times it takes a few quarters to affect the economy. The immediate improvement could be seen by Bush’s tax cut but it took longer for Reagan’s to take hold. However, the result from tax increases is ALWAYS a slow economy. And, that is exactly what Obama is going to get here.
However, he already has an economy in a recession. By raising taxes in a recession, he is just going to worsen the economy, and by taking more income and capital from it, he could possibly push the entire country into a depression.
By trying to cut the deficits created by the tax and spending Liberals and the fiscal irresponsible Republicans by raising taxes, he is going to lower the tax revenues even further. This is simple economic suicide. As the economy slows further from the tax increases, the government tax revenues will decrease. Without the tax revenue, the deficits will soar. This generates countless perils in our economy by affecting the value of our dollar to too many other issues to name here. Putting it simply, his entire economic policy with the “Spendulous” Bill and his budget will do exactly the opposite of its intent. It will increase deficits and slow the economy even further.
By the time Obama is done, he would tax and spend America into economic oblivion with tax rates punishing businesses and the wealth creators of our economy, and the government wasting whatever resources we would have on programs that have never worked.