Obama’s new budget is a bad joke

February 13, 2012

Just as we expected it would be.

Phillip A Klein takes a look at it and compares it to Obama’s promises on entering office. Here’s his takeway:

Obama spent most of last year lecturing the country on how he supported a so-called “balanced approach” on deficit reduction. Time and again, he said he was ready to make real changes to Medicare, Medicaid and Social Security if only Republicans were willing to budge on the revenue side. He repeated this in a lot of speeches and insisted that behind the scenes he was really, really, ready to cut a deal with the GOP during the debt limit talks. But he never presented a tangible plan that could be scored by the CBO and evaluated next to Rep. Paul Ryan’s plan to reform entitlements and put the nation on a sustainable fiscal course. He had his chance with this budget. Instead, Obama decided to forgo tough choices so he could attack Republicans during an election year.

Bear that in mind: we have a president far more interested in his own electoral fate than the fate of the nation.

Meanwhile, James Pethokoukis accuses Obama of doubling-down on class warfare in this budget:

Here’s pretty much all you need to know about Obamanomics: In 2011, the Obama White House suggested raising the top dividend tax rate to 20 percent from 15 percent. Keeping the dividend rate at a relatively low level, the White House said, “reduces the tax bias against equity investment and promotes a more efficient allocation of capital.” Makes sense, right? Basic economics.

Yet in his brand-new, 2013 budget, Obama calls for taxing dividends as ordinary income, essentially raising the top rate all the way to 39.6 percent. And then when you tack on the 3.8 percentage point Obamacare surtax — and an additional 1.2 percentage point itemized deduction phase-out for high-end taxpayers — the rate rises to 44.6 percent.

So apparently Obama is now in favor of a greater bias against equity investment (and in favor of debt) and promoting less efficient allocation of capital. And this helps create an economy “built to last” in some way?

Of course, it doesn’t. Not at all. More like “built to fail.” Then again, Obama’s new budget isn’t about economic growth or cutting debt or creating a “built to last” economy. The Obama campaign is built around the idea of reducing inequality. So in his budget, Obama takes the populist whip to the wealthy and to business…

And to people who depend on dividends for their retirement, whether directly or through pension funds. Including the middle class.

Why does Barack Obama hate retired people?

(Crossposted at Sister Toldjah)


Indexing the capital gains tax

September 21, 2010

Sounds like a snoozer of a topic, right?

Hey, wake up! It’s your money we’re talking about here!

That’s right. If you’re an investor (and everyone should be in some form, even in this lousy economic climate), then you’re being ripped off by the capital gains tax. Not only is it a form of double taxation that should be eliminated, but, even at the current relatively low rates, you still lose because of inflation. In fact, as this Center for Freedom and Prosperity video demonstrates, it is quite possible to pay taxes on a “gain” that is actually a loss:

It’s like getting mugged and then being forced to pay for the mugger’s cab fare. Some fun, eh?

More seriously, this kind of taxation eventually discourages investment, which hampers economic growth and job creation, something we just don’t need.


By Obama, you’ve made enough money!

April 29, 2010

Wrapped up as I was in the desperate efforts to protect the President from terrorist grannies, I missed this gem from his speech in Quincy, Illinois:

Excerpt via Ed at Hot Air:

We’re not, we’re not trying to push financial reform because we begrudge success that’s fairly earned. I mean, I do think at a certain point you’ve made enough money. But, you know, part of the American way is, you know, you can just keep on making it if you’re providing a good product or providing good service. We don’t want people to stop, ah, fulfilling the core responsibilities of the financial system to help grow our economy.

That was not in his prepared remarks, and I’m sure TOTUS wasn’t happy.

Is there any clearer expression of the statism at the heart of this administration? Not only do Obama and the (Social) Democrats claim the power and the requisite wisdom to regulate broad swathes of the economy, but the President himself claims to know better than you when you’ve earned enough money, beyond which, we assume, one enters the realm of “unfair.”

It also shows (again) that he just doesn’t “get” capitalism or market economies. The promise of possibly earning more money is what encourages people to start a business, hire more people (Remember jobs, Mr. President?), and take risks. That incentive system, coupled with a relative lack of government interference,  is why our economy has been phenomenally successful. By saying “you’ve made enough,” you take away any incentive for people to work harder. Why should I or anyone risk capital in an investment, or take a job that eats up most of my time, if you are going to tell us we can only make so much from it? What’s next, wage and price controls a la Diocletian and Nixon?

And the arrogance! That a man who has never worked in private business, whose whole adult life has been in academics, non-profit, and government work should think that he knows how much a businessman or an investor should make in return for their effort and risk? A man who knows next to nothing about economics? How is this even in Washington’s purview?

How about trying to do the jobs the federal government is assigned, rather than everything it isn’t?


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