Understanding the economics the Obama way
OBAMA in Green Bay, Wis., on Thursday: "It's time to use the savings from ending the wars in Iraq and Afghanistan to start paying down our debts here and rebuilding America. Right now, we can put people back to work fixing up roads and bridges. Right now, we can expand broadband into rural neighborhoods and make sure our schools are state of the art.
THE FACTS: If saying things over and over could make them true, this would be true.
But it's not. This claim is the kudzu of the Obama campaign, the weed that regrows no matter how many times it's whacked.
The wars were financed mostly with borrowing, so ending them does not free a pile of cash for anything else. "Rebuilding America" with war savings merely means continuing to borrow and pile up debt, but for purposes other than war.
by The Jester Is A Mirror November 2, 2012 8:35 PM
Sort of like bundling up a lot of small loans that most of the borrowers cannot repay and calling that as asset. Of course all that swamp land is prime real estate.
by lil_oh_me November 2, 2012 9:00 PM
OBAMA in Green Bay: "If we're serious about the deficit, we've also got to ask the wealthiest Americans to go back to the tax rates that they paid when Bill Clinton was in office."
THE FACTS: His tax plan is not just a return to the good old days. Yes, he wants to return to Clinton-era tax rates for couples making over $250,000 and individuals making over $200,000. That means a top rate of 39.6 percent, up from 35 percent. But there's more. His administration has already enacted new taxes on the wealthy, through the health care law, imposing a 0.9 percent Medicare surcharge on richer households and a 3.8 percent tax on investment income for high earners.
Apart from the health care law, the president is also proposing a rule to ensure that households earning over $1 million pay a 30 percent minimum tax rate. And he supports raising Medicare premiums for well-to-do retirees.
by The Jester Is A Mirror November 2, 2012 9:35 PM
Was this from the 2012 or 2008 speech? Sounds like it's the same to me.
by Lex Parsimoniae November 2, 2012 9:38 PM
Just the other day , now here is something he said back in 09'
President Barack Obama said in February 2009 that his presidency would be "one-term proposition" if the economy did not recover in three years. http://www.youtube.com/watch?v=CCN5-ovvFL0
by The Jester Is A Mirror November 2, 2012 10:44 PM
Now you mean insensitive people need to just stop this. This election is NOT about what our President HAS done in the last four years, it's about what Romney MIGHT do in the next four...
by MichiganTed November 3, 2012 12:33 AM
Its better than trickle down tax cut policies that have crushed the middle class since Reagan. The Teaparty minions sitting around waiting on their trickle like the say the poor wait on the gov't checks. All the while the wealthy and Hannity drive home everyday laughing at the mass of fools buying into the same old VOoDoo
by Concerned American November 3, 2012 1:08 AM
Actually, no it's not...though your perception of trickle down is misguided.
Or you haven't been following along.
How is a Romney tax plan trickle down?
Lower rates across the board at all income levels.
Eliminate most of the tax loopholes, exemptions (with exceptions like the EIC),
and deductions, which typically favor the higher income earners (rich paying more).
Lower corporate income taxes, along with the elimination of loopholes, so small and medium businesses have less of a tax burden and mega corps like GE, Apple etc don't get away with paying no tax or very little tax.
Amazingly, ideology trumps you doing your own due diligence.
Even TF admitted the Romney tax plan taxes the rich greater and reduces taxes on the middle and lower income levels.
by Lex Parsimoniae November 3, 2012 8:03 AM
Romney can't change the tax code himself without Congress and NO WAY we will see a 20% reduction across the board. The numbers don't add up at all. He depends on growth projections that may not even happen.
Once the dust settles it will be back to tax cuts to the job creators which has been GOP policy since Reagan. VooDoo Trickle down theory is their practiced policy and to get any support that is what Romney will embrace.
If he wins I will bet you the tax code doesn't get changed and loopholes don't get eliminated at all in his term.
by Concerned American November 3, 2012 11:27 AM
What do you base the numbers not adding up on.
True, just like the income bracket that got the biggest tax cut percentage wise under the Bush tax cuts were the lower income earners.
A 30% reduction in income tax.
Wait that can't be true? You said since Reagan.
I will bet, depending on how the senate turns out after the election, that there will a tax cut across the board, maybe not the full 20%, or maybe going for the 20% phased in over time, either way, coupled with loopholes eliminations, reduction in corp tax (severely needed along with the obligatory loophole removals), and hopefully a reduction or elimination of cap gains tax.
Remember you have to factor in growth, factor in not only more people going on the payroll (thus the tax rolls) and off of the
welfare rolls (reducing costs).
There was nothing wrong with Reagan's plan except that he didn't couple it with cost reductions.
by Lex Parsimoniae November 3, 2012 3:28 PM
CA< Forget numbers for a minute. Do you agree that broadening the tax base, ie closing loopholes and reducing the tax rates to equal an equivalent amount? Same dollars in but from a broader base of payers.
We can argue all month about the arithmatic but if we can't even agree on the concept all we are doing is making noise.
What say you?
by BuySide November 3, 2012 6:49 PM
Buyside, he has to believe in the what he posts regardless of logic, common sense and
reality. If he doesn't, he can't justify
by Lex Parsimoniae November 3, 2012 9:29 PM