Right after the election, it was all peaches and cream and conciliatory
common-ground language when President Obama met with congressional
leaders to discuss the fiscal cliff. Of course, the president campaigned
on tax hikes for the rich, by which he meant raising top income-tax
rates and extending the Bush tax cuts for incomes below $200,000. And
the president’s first meeting post-election was with his union
and liberal-interest-group supporters, all of whom want to raise the top
rates and then some. But instead, the newly reelected president spoke
about “new ideas,” as long as they provided a balance of spending cuts
and tax increases on the most successful upper-end earners.
Now, however, stalemate may be just as likely as solution. Why? Well, it was former Bush advisor Keith Hennessey who discovered a big obstacle in all this. Team Obama wants a gargantuan $1.6 trillion tax hike over the next ten years to finance larger government. And Hennessey surmised -- and I agree -- that the reason the president couched his language in terms of higher tax “revenues” rather than tax “rates” is that he essentially wants both. Raise the top rates and cap or eliminate a number of tax deductions for more revenues. This is going to be a big problem. It could well be a deal-breaker.
Read more: http://finance.townhall.com/columnists/larrykudlow/2012/11/21/obama_wants_higher_revenues_and_rates/page/full/
Now, however, stalemate may be just as likely as solution. Why? Well, it was former Bush advisor Keith Hennessey who discovered a big obstacle in all this. Team Obama wants a gargantuan $1.6 trillion tax hike over the next ten years to finance larger government. And Hennessey surmised -- and I agree -- that the reason the president couched his language in terms of higher tax “revenues” rather than tax “rates” is that he essentially wants both. Raise the top rates and cap or eliminate a number of tax deductions for more revenues. This is going to be a big problem. It could well be a deal-breaker.
Read more: http://finance.townhall.com/columnists/larrykudlow/2012/11/21/obama_wants_higher_revenues_and_rates/page/full/
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