Give Obama what he wants: Restore tax rates to the Bush era for everyone making under $250,000.
That’s nuts, you say? No, it’s not:
- Republicans will avoid the political consequences of defying 60 percent of the American people.
- The rich are avid Obama supporters. Republicans should make them pay for that.
- And, most importantly, even if passing just the middle class tax cuts averts the fiscal cliff, $1.2 trillion in spending cuts will still kick in. Obama will have no leverage to stop that! That’s good policy and good politics, since, as Keynesians will tell you, in the short term those spending cuts will help deepen the coming recession:
Non-defense discretionary spending, which includes housing assistance and energy subsidies for low-income people, would drop by 8.2%.
And non-defense mandatory spending, including the U.S. Forest Service and social services block grants, would be cut 7.6%. Certain low-income programs, such as Medicaid and food stamps, are shielded.
If these cuts are enacted, it would hurt the economy, experts say. In fiscal 2013 alone, federal spending would fall an estimated $65 billion, according to the Congressional Budget Office. This could shave off two-thirds of the expected economic growth for the year and boost the unemployment rate by as much as 1.5 percentage points, according to Steve Fuller, director of the Center for Regional Analysis at George Mason University.
We need a deep, long recession to cleanse Democrats from office. Giving Obama what he wants is a way to get that recession, while cutting $1.2 trillion in federal spending immediately. He’ll have no one to blame but himself.
Cynical, you say? Nowhere near as cynical as Obama using $8.5 billion of your hard-earned tax dollars to buy the election. In this case, all I’m urging is “bipartisanship”, AKA giving Democrats what they want.