The Leader's Ledger

Posted by Brian Patrick on

Good morning, 

Yesterday, the President delivered a Rose Garden speech detailing the latest iteration of his plan to address the debt and deficit situation in this country. The President’s plan calls for a whopping $1.5 trillion in new taxes on working families and job creators – effectively the largest tax increase in modern history. With the economy stalled and unemployment at 9.1%, this new call for tax increases runs counter to the President’s own statement that, “you don’t raise taxes in a recession.” Members of the President’s own party are already pushing back, with Senator Ben Nelson saying, “There’s too much discussion about raising taxes right now, not enough focus on cutting spending.” And Senator Schumer – one of the party’s staunchest liberals – is raising concerns with the President’s plan to hike taxes. Simply put, it is time to grow the economy and create jobs, not raise taxes and increase uncertainty on the very small businesses that we are counting on to get people back to work. As Leader Cantor said yesterday, “The point is this: it's about jobs right now. You don't create jobs by raising taxes.”

Today In History: In 1973, in a highly publicized "Battle of the Sexes" tennis match, top women's player Billie Jean King beats Bobby Riggs.

Birthdays: Upton Sinclair, Sophia Loren, Gary Cole, and Moon Bloodgood Yesterday: Rep Tim Scott

Here is what’s in today’s Ledger ...

State Of Play: Bipartisan Opposition To The President’s Plan To Raise Taxes Continues To Mount

Senator Schumer Comes Out Against President Obama’s Plan To Raise Taxes On Working Families & Small Businesses. Schumer said the $250,000 limit is unacceptable since it will hit the metropolitan area disproportionately because of the high cost of living here. CBS New York

  • Senator Ben Nelson: There’re Too Much Talk About Raising Taxes and Not Enough Focus On Cutting Spending. Sen. Ben Nelson (D-Neb.), a key moderate who’s up for reelection next year, didn’t mince words: “There’s too much discussion about raising taxes right now, not enough focus on cutting spending.” Politico

Former Treasury Chief: You Don’t Get Gushers Of Revenue By Raising Taxes, You Get It Through Growth. Shultz ... said a simplification of the code would allow Congress to lower rates on a “revenue-neutral” basis, while economic expansion would boost tax receipts. “You’ll get a gusher,” Shultz said. “If you get this kind of stimulative tax policy and other things into effect, there will be a response and revenue will come in.” ... “You don’t get gushers of revenue by raising tax rates. You get it through expansion.” Bloomberg

Kudlow: President Obama’s Tax Attack Is Detrimental To Jobs, Growth, and Prosperity. It could almost make your head spin. With an economy on the front end of another recession, President Obama's tax attack on the folks who are most likely to succeed, invest, start new businesses, and create jobs is nothing short of staggering. Only liberal-left class-warfare ideology can explain this. In his speech on Monday, Obama laid out $1.5 trillion in tax hikes over ten years, aimed almost entirely at America's well-to-do. This includes $800 billion from rolling back the top rates in the Bush tax-cut plan, $470 some-odd billion to reduce itemized deductions for upper-bracket payers, and -- oh yes -- a millionaire's tax called the "Buffett Rule." ... Tax investment more, and you'll get less of it. If these kinds of tax hikes are ever passed, the economy will be doomed to stagnation over the long-run. Penalizing incentives will do that. And lower growth means higher deficits. ... At the end of the day, it sure looks like our president wants to raise taxes on wealthy Americans and large corporations in order to spend more and enlarge the size and scope of government. From the standpoint of jobs, growth, and prosperity, it just won't work. Real Clear Markets

Bipartisan Opposition To President’s Plan, Bipartisan Support For Creating An Environment For Private Sector Growth Without The Fear Of Tax Increases. The president wants to show the country he's serious about boosting employment, which he proposes to do with a $447 billion package that bears an eerie resemblance to his 2009 stimulus effort. But the country isn't buying. A recent Bloomberg poll found that 51 percent of Americans don't think the jobs bill would have the desired effect. They may never find out, since it faces strong opposition in Congress. Conservative Democrats say they have no interest in voting for Obama's proposed new spending. Among liberals, there is some resistance to cutting employer payroll taxes. Republicans are, shall we say, even less receptive to Obama's demands. ... The federal government can't do much to boost employment in the near term, though it can do a lot to depress it. What it can do on the positive side is create an environment in which the private sector can plan and operate without fear of rising taxes and growing bureaucratic interference, thus fostering a prosperity that will last. The Chicago Tribune

State Of Play (2): President Obama’s Misleading Deficit Plan Fails To Get The Deficit Under Control

Tax Increases Account For More Than 100% Of The President’s Deficit Reduction Plan. Today President Obama’s released a deficit-reduction proposal that was actually written down on paper, the first time he has done so since introducing his laughable 2012 budget back in February (the Senate voted it down 97 to 0). The White House claims that the president’s plan represents a “balanced approach” that, relative to its current policy baseline, will increase the federal deficit initially by $300 billion in fiscal year 2012 (to pay for his “jobs plan“), but will reduce deficits by $3.2 trillion over the next decade. The claim is outrageously misleading. In fact, when you strip away the budgetary gimmicks, Obama’s plan achieves less than half the overall deficit reduction he is claiming, and is as wildly unbalanced as his February budget proposal. ... So, because of the additional spending Obama has proposed as part of his “jobs plan,” tax increases actually account for more than 100 percent of the deficit-reduction he can accurately claim. In his speech at the White House this morning, the president’s said his plan “cuts $2 for every dollar in new revenues.” In reality, it reduces the deficit by cutting $0, spending $1 and raising taxes by $11. Despite this massive tax increase, however, the president’s plan still fails to get deficits under control. Annuals deficits reach decline to $476 billion in 2014, but rise to $565 billion in 2021. Over the 10-year budget window, the plan adds to the deficit by a total of $6.4 trillion by 2021, and gross federal debt reaches nearly $25 trillion, more than 100 percent of the national GDP. National Review Online

  • WaPo: The Obama Administration’s Deficit Reduction Number Is Misleading ... The administration’s claim to have come up with $4 trillion in deficit reduction is misleading. The more accurate amount is barely half that, including about $1 trillion in domestic and security spending cuts already agreed to as part of the debt ceiling deal, and $1.5 trillion in tax increases on the wealthy. The administration gives itself credit for another $1 trillion by counting savings — already incorporated in any realistic base line — from winding down military operations in Iraq and Afghanistan. ... The Washington Post

Fact Check: A Look At The Numbers Quickly Debunks President Obama’s “Buffett Rule.” President Barack Obama makes it sound like there are millionaires all over America paying taxes at lower rates than their secretaries. "Middle-class families shouldn't pay higher taxes than millionaires and billionaires," Obama said Monday. "That's pretty straightforward. It's hard to argue against that." The data tells a different story. ... This year, households making more than $1 million will pay an average of 29.1 percent of their income in federal taxes, including income taxes and payroll taxes, according to the Tax Policy Center, a Washington think tank. Households making between $50,000 and $75,000 will pay 15 percent of their income in federal taxes. Lower-income households will pay less. For example, households making between $40,000 and $50,000 will pay an average of 12.5 percent of their income in federal taxes. Households making between $20,000 and $30,000 will pay 5.7 percent. The latest IRS data is a few years older — and it's limited to federal income taxes — but it shows much the same thing. In 2009, taxpayers who made $1 million or more paid on average 24.4 percent of their income in federal income taxes, according to the IRS. Those making $100,000 to $125,000 paid on average 9.9 percent in federal income taxes. Those making $50,000 to $60,000 paid an average of 6.3 percent. The Associated Press

Keeping Tabs

  • Yesterday’s NYT Headline Makes Clear That President Obama’s Priority Is To Raise Taxes – “Obama Vows Veto if Deficit Plan Has No Tax Increases” The New York Times
  • House Judiciary Chairman Lamar Smith Calls On Attorney General Holder To Appoint An Examiner In Solyndra LLC's Bankruptcy The Wall Street Journal
  • Growing Frustration Within The Technology Sector Towards President Obama’s Refusal To Embrace Repatriation Roll Call

Off The Beaten Path

Running With Lance Armstrong Is Not For The Weak – TMZ

Science: The Butterfly Wing Transplant – The Quad-City Times

Hey Mom!

GOP Health Care Reforms