In contrast, Obama’s proposed 10-year fix would boost taxes by $1.6 trillion, launch a new stimulus costing at least $50 billion and begin negotiations to cut roughly $600 billion from the government’s spending plans.
Obama’s conditional $600 billion cut amounts to roughly one percent of the planned $45 trillion in spending over the next decade.
Under Obama’s presidency, the federal debt has grown to $11.4 trillion, prompting several credit-rating agencies to downgrade the nation’s credit in 2011 and 2012. Unless the annual deficit and accumulated debt are reined in, financial analysts predict a major economic crash even ore ruinous than the 2008 crash caused by federal housing policy.
Obama and his deputies are using the crises to insist that the GOP break its ideological opposition to higher tax rates, and to formally declare that higher tax rates are needed.
“Rates have to rise, and the Republicans need to acknowledge that,” White House spokesman Jay Carney declared Dec 3. “That’s the only way to get from here to there.”
Republicans have refused to increase tax rates on investors and business owners, saying tax hikes would slow economic growth, reduce employment and boost government’s ambition and reach.
Republicans also say that a concession on tax rates would weaken the party prior to the 2014 midterm elections, when Obama is expected to push for a Democratic majority in the House.
Obama used his Twitter exchange to push for a GOP cave-in on taxes.
The GOP’s proposal to curb tax breaks used by the wealthy won’t raise enough taxes, he said.
“Not enough revenue, unless you end charitable deductions, etc. less revenue=more cuts in education ec,” Obama responded to one questioner.
“Keep pressure on Congress. Call, email, tweet your Member & tell them what 2k means to you. Lets get it done,” he tweeted at 2:28 p.m.
Spending “cuts w/out revenue = reductions in student loans; work/study & college tax credits expire. Bad for growth. like your hair!,” Obama declared.
White House officials say the president types his own Twitter messages.