Remember when President Obama invented the sequester in August 2011? Oddly, whoever wrote the President’s “fact sheet” on certain aspects of sequestration forgot to mention that fact:
Unless Congress acts by March 1st, a series of automatic cuts—called a sequester—that threaten thousands of jobs and the economic security of the middle class will take effect. There is no question that we need to cut the deficit, but the President believes it should be done in a balanced way that protects investments that the middle class relies on. Already, the President has worked with Congress to reduce the deficit by more than $2.5 trillion, but there’s more to do. The President believes we can not only avoid the harmful effects of a sequester but also reduce the deficit by $4 trillion total by cutting even more wasteful spending and eliminating tax loopholes for the wealthy.
Unfortunately, many Republicans in Congress refuse to ask the wealthy to pay a little more by closing tax loopholes so that we can protect investments that are helping grow our economy and keep our country safe. Our economy is poised to take off but we cannot afford a self-inflicted wound from Washington. We cannot simply cut our way to prosperity, and if Republicans continue to insist on an unreasonable cuts-only approach, the middle class risks paying the price. The most damaging effects of a sequester on the middle class are:
Feel free to follow the link above, but warning: it’s an incredibly sad story of how spending reductions and cuts will devastate the poor and middle-class, all because those darn Republicans won’t raise taxes on the rich. (Oddly, the “fact sheet” fails to mention tax increases on the wealthy already happened in January. Though that was a rate increases, not loophole eliminations.)
The other odd thing about the Administration’s wish to eliminate loopholes is they didn’t appear to be a priority in the fiscal cliff deal that raised taxes on the rich. As reported by Tea Party Patriots, White House Press Secretary Jay Carney defended over $60 billion in special interest tax credits and loopholes for Goldman Sachs, NASCAR, wind energy, and other largely wealthy, well-connected industries. In other words, eliminating loopholes for tax increases is a good thing if it doesn’t impact the Administration’s friends.
Contrast that with Tea Party Patriots, which supports eliminating as many loopholes as possible in as many industries as possible in order to lower rates for all Americans.
Hat tip to The Washington Post Wonk Blog’s Brad Plumer for the list.