If you’re getting the feeling the debt ceiling deal will look more like what the Senate is proposing than the House’s “cap, cut and balance” plan — well… me, too. Here’s why:
Obama urged Senate Majority Leader Harry Reid, a fellow Democrat, and Senate Republican leader Mitch McConnell to start “talking turkey” about it.
Senate Budget Committee Chairman Kent Conrad, one of the six Democratic and Republican senators who have been working since December on a deficit-reduction plan, said the proposed $3.75 trillion in savings over 10 years contains $1.2 trillion in new revenues.
Plenty of new taxes, and no real cuts. Yep, that’s the ticket.
I’m waiting to see the details on the tax half of the plan. Are the new taxes going to hit just “the rich?” You know, those “millionaires and billionaires” who got that way on $200k a year?
Here are the tax hikes Obama already plans on getting, even before a deal:
In his most recent budget request, the president proposed letting the top two income tax rates revert to 39.6% and 36%, up from 35% and 33% today. He also called for an increase in the capital gains and dividend rates to 20% that high-income households pay, up from 15% today. And he would reduce the value of their itemized deductions and personal exemptions.
In addition, ObamaCare removes the cap on Medicare payroll taxes, and adds a Medicare tax on investment income. (My hurting retirement fund thanks you in advance, Mr. President.)
So if the new new taxes coming out of the Senate fall only the rich — well, how many times can we go back to that well before it runs dry?
Please, also keep in mind that the ObamaCare taxes are deficit-neutral at the very best; they pay for the new program. If, that is, you believe it when Rosy Scenario tells you ObamaCare itself is deficit-neutral. Now also remember that the expiring Bush tax cuts only amount to an extra trillion over the next tens years. At current spending, those ten years of tax hikes cover a mere nine months of deficits.
Something’s gotta give. And it ain’t the rich.
They’re coming for you and my, baby — and they’ve gotta come soon.