Posted by
Bill Crawford on Friday, August 28, 2009 12:33:10 PM
The White House has tacitly agreed to a deficit projection of $9.5 trillion dollars over the next ten years. It looks like they've kicked the can on the campaign promise of "cutting the deficit in half by 2012" and are settling on a number that brings the average below a trillion dollars a year. The OMB people must be passing the Xanax to sign off on dropping standards that fast.
But that's not where the fun truly starts. Follow along on a few assumptions that the OMB takes as given, in order for the deficits to be that low:
1) The Bush tax cuts will be allowed to die, and marginal tax rates will go back up about 10% across the board. This is a no-brainer, as all the Congress needs to do to make this happen is to sit on their hands and not vote to renew them.
2) Whatver health care reform comes down the pike will be revenue neutral. All new taxes and fees, along with cost reductions, will not add a dollar to the deficit. This means that 47 million uninsured (their number, not mine) will have medical converage, and will not make things any more expensive for the government than it is now.
3) This is the best one: under the new cap and trade hydrocarbon legislation, their estimate (not mine) is that the average family will be spending over $1000 a year more in energy, and most of that will translate into federal revenue. Starting in 2010, that is.
Because if you aren't prepared for forking out an extra grand, you will be adding to the deficit. So relax, folks, it's all for a good cause.
And he won't raise taxes on the middle class, "not one thin dime".
Welcome to the world of moral relativism. Say whatever you need today, to serve your needs today. Tommorow, if you need to contradict yourself because of different needs, so what?