Obama pushing for tax increases to replace part of the sequester
This morning, Politico reported President Obama wants to delay the sequester even further and replace part of the cuts with tax increases:
President Obama will call on Congress on Tuesday to pass a temporary package of spending cuts and tax reforms that would delay the onset of automatic, across-the-board cuts known as the sequester.
“Uncertainty around the sequester is already having a negative impact on our economic growth, and if it was to take effect it would cost hundreds of thousands of American jobs and have devastating impacts on our economy,” a White House official said in a statement. “…The President will urge Congress to come together and act to ensure these devastating cuts to defense and job-creating programs don’t take effect.”
The President is expected to speak at 1:15 about this push. Here are four reasons why this new proposal is bad:
- First and foremost, the idea that government spending cuts harmed economic growth is not accurate, as Tea Party Patriots highlighted this morning. In fact, spending went up in 2012.
- Tax increases will harm economic growth, as the White House admitted last month in defending special interest tax credits and loopholes for its buddies in the green energy industry.
- Washington needs to cut spending, as the Treasury Department reported in January. Avoiding the sequester without a greater number of spending reductions will be more proof that Washington is not at all serious about balancing the budget.
- It lets the President off the proverbial hook. It was, after all, the President who proposed the sequester. If he really thought it was such a bad idea, why propose it, knowing Congress was likely to fail to come to a satisfactory replacement proposal in the so-called Super Committee?
Before November, the President claimed he was prioritizing deficit reduction. His attempt to avoid his own deficit reduction proposal should prove once and for all any talk about deficit reduction by President Obama pre-election was merely a political maneuver, one designed to make the American people and mainstream media believe he was serious about deficit reduction.