June 25, 2011

WE'RE THIRTY MOINTHS IN...:

Obama, The Deficit, And The Long Game (Jonathan Chait, June 24, 2011, New Republic)

If Obama wins reelection, he can refuse to extend any tax cuts on income over $250,000. That will prompt Republicans to refuse to extend tax cuts on any income under $250,000 (as they signaled last December, and in keeping with their longstanding priorities, which deem the middle class tax cuts mere sweetener to get the tax cuts for the rich they really want.) Then the tax cuts expire while Obama blames Republicans for holding the (popular) universal tax cuts hostage to the (unpopular) tax cuts that only benefit the rich.

A combination of spending cuts now, gaining bipartisan credibility, winning reelection, then a tax cut showdown would be the ideal scenario. However, it depends on Obama winning reelection, which is far from assured. More importantly, it depends on Obama actually carrying out this plan. Will he?


...yet there are still pundits who think the UR has plans?


Posted by at June 25, 2011 8:41 AM
  

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