Obama’s Dangerous Expedition

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Obama debt commission member, Republican Sen. Judd Gregg of New Hampshire, launched a scary trial balloon on ABC News. Gregg suggested the debt commission will likely recommend a massive $26.7 trillion tax increase. Here are Gregg’s actual words:

Everything has to be on the table – there’s no question about that… Erskine Bowles, one of the co-chairmen of the commission, has suggested a 75-25 split — 75 percent of the savings being in spending, and 25 percent in revenues… I think it’s likely that there will have to be a revenue component, but it should be significantly, dramatically — and a 3-1 ratio is pretty dramatic — dramatically less than the initiatives in the spending side of the ledger.

According to an analysis by Americans for Tax Reform if Bowles wants $3 in spending cuts for every $1 in tax hikes then the tax increases will be larger than anyone expects:

Bowles and Gregg can only be talking about cutting $3 in promised Social Security and Medicare benefits in exchange for $1 in tax increases. In other words, 1/4 of the unfunded liabilities of Social Security and Medicare would be paid for with tax hikes. So how big is that? According to the 2009 Social Security and Medicare Actuaries’ Report, the long-run insolvency of the Social Security and Medicare systems is $106.8 trillion (with a “t”) over the infinite horizon. To close this gap with one-quarter tax hikes is, therefore, to raise taxes by $26.7 trillion. Of course, this number is undoubtedly higher since the Obama Administration is sitting on (read: hiding) the 2010 version of the report (it’s nearly six months overdue).

On the heels of a huge tax increases included in the over-2000-page ObamaCare package, together with over-2000-page so-called “Financial Reform Package,” together with the expiration of the Bush tax cuts, Obama’s economic policies have guaranteed a double-dip recession.

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  • Omar Muhamed

    Obama will make Jimmy Carter's failed presidency look great in comparison.

  • No Comrade

    We give billions to Pakistan to "help" us against the "extremists." They give our money to the people we're fighting. We're afraid to napalm the poppy fields because we don't want to turn the farmers against us. I have a much better idea. Why don't we give our money directly to al Qaeda and the Taliban and offer to help them distribute their dope? If we really want to commit suicide that's a much more efficient way to do it. And since we're so far in debt perhaps we could borrow some money back from the Palestinians so we can pay Pakistan…

  • Sprinklerman

    Last year we spent $439 million on the United Nations. Instead of giving that money to the UN and their failed missions let's use that to begin funding Social Security and Medicare. I know it's just a drop in the bucket but it's a start.

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