Friday, February 27, 2009

Battle lines forming over Obama budget

As news came out that the recession in the fourth quarter of last year was deeper than previously thought, Democrats and Republicans prepared to battle over President Barack Obama's budget.

Despite the apparent "tax and spend" nature of the Obama plan, many Democrats embrace the administration's frank honest approach as compared to the "fudgeting" so frequent in recent times. Washington has perfected the technique of massaging stats to hide the structural problems in the economy.

On the other side of the aisle, Republicans are digging their trenches for a major battle hoping that some conservative Democrats will defect to their side. Top Republicans have been using words like "socialism" and "socialist" to describe Obama's plan to spend the country's way out of a deep recession or even an economic depression. However, few could argue that the country has not faced this type of troubled economy since the Great Depression of last century.

Also, the truth is that taxes are very near historical lows at the present expecially for the wealthiest Americans. The last time the top bracket earners paid rates lower than today's was just before the market crash of 1929.

IN THE FIELD: US President Barack Obama's proposed budget, unveiled on Thursday, anticipates an economic contraction of 1.2% in 2009, though his projections were more optimistic than those of the Congressional Budget Office.

Cautiously, Democratic lawmakers embrace Obama's budget

San Jose Mercury News - ‎52 minutes ago‎
By Carl Hulse and David M. Herszenhorn WASHINGTON - For years, congressional Democrats tried to avoid anything that would let Republicans slap the tax-and-spend label on them.
Comment by Frances Beinecke President, Natural Resources Defense Council

1 comment:

The Intellectual Redneck said...

Taxing the rich at 100% won't pay for Obama's budget. The Wall Street Journal has reported that taxing the rich at 100% won't pay for Obama's budget. Barack Obama promised not to raise taxes on anyone making under $250,000 per year. Where is he going to get the money? The numbers indicate Obama will need to take 100% of the income of everyone making over $75,000.

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