I really hope he's wrong, but history says he's right: "Get ready for higher taxes and no spending reform."
The Obama tax hikes would both be too much and too little--too much not to dampen already weak economic growth, too little to stop the rapid accumulation of debt.
Meanwhile, National Journal reports that "Senate Democratic leaders . . . rejected putting any entitlement reforms forward ahead of Friday's meeting" with congressional leaders at the White House. "In fact, Senate Majority Leader Harry Reid talked only about what he won't accept during negotiations--namely, any changes to Social Security."
The American Enterprise Institute's James Pethokoukis reports that Obama's budget also calls for some $577 billion in spending cuts. "That's $3 of tax hikes for every $1 of spending cuts. Even if you include interest savings, 60% of the debt reduction comes from tax hikes." And what happens when interest rates go up?And what happens when interest rates go up? That's the real fiscal cliff, one toward which Obama and Democrats apparently intend, as his campaign slogan had it, to keep moving "Forward."
Can we come up with something other than "fiscal cliff," by the way? Lately, I've been hearing people say things like, "Well, maybe they'll go over the cliff for a day or two, but that will panic them into doing the right thing." Maybe I'm just being picky, but once you go over a cliff, THERE'S NO TURNING BACK, OK!?!? You're gonna hit the ground and go Splatt!
