Thursday, July 01, 2010

Obama: Deficit Hawksbill

The AP reported President Obama as saying:

The biggest problem is not the government's stimulus spending or even the bailouts of Wall Street and automakers, but the long-term spending on health care and other benefits.

Fresh off passing health reform, President Obama cited "long term spending on health care" as an element of our biggest problem. Didn't health care reform fix the problem for a decade?

I've questioned how a tapped out government can keep health reform commitments, which don't begin in earnest until 2014.

Uncle Sam got "empty pockets syndrome" from Bush tax breaks and the financial crisis, which required trillions in government intervention and cratered employment. Obama added corporate tax breaks via economic stimulus. They comprised 25% of the stimulus package.

For the fourth time Congress failed to rectify private equity underwriters (PEU's) preferred tax status on carried interest income.

Obama's Deficit Commission is made up of corporate chiefs and their sponsored Congressional representatives. Virtually all want to cut corporate tax rates to make America "more competitive in a global economy," a euphemism for a race to bottom on worker pay/benefits, taxes and regulation.

Obama wants you to believe America has a spending problem, not a taxing problem. Watch the bait from his administration, the Deficit Commission, and Congress. Beware the switch. Change will come very slowly, so citizens don't feel the pain and revolt.

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