Thursday, March 05, 2009
Tax deduction limitations: legit or gimmick?
Part of Obama's budget proposal that is meeting huge resistance, including from Dems, is the plan to cap the amount that earners in the top two brackets can deduct to 28%. This would, for example, limit the tax benefit of charitable donations from the wealthiest in our country who give the most.
This proposal from Obama is, on the face of it, so stupid and absurd that I have to wonder if it is a legitimate point of contention between Obama and Congress, or a gimmick? That is, did he throw a few items like that into the budget that he knew were absurd and never really wanted, such that he could then "concede" to take them out and appear like he is a true compromiser and willing to be bipartisan? Or does he really want them included? As hypocrisy grows between what he pledged on the campaign trail (e.g., no earmarks and line-by-line budget analysis) vs. reality (spending bill with thousands of earmarks he is unwilling to veto), I'm skeptical. I think he will concede to remove this limitation, but it was nothing more than a gimmick all along.
This proposal from Obama is, on the face of it, so stupid and absurd that I have to wonder if it is a legitimate point of contention between Obama and Congress, or a gimmick? That is, did he throw a few items like that into the budget that he knew were absurd and never really wanted, such that he could then "concede" to take them out and appear like he is a true compromiser and willing to be bipartisan? Or does he really want them included? As hypocrisy grows between what he pledged on the campaign trail (e.g., no earmarks and line-by-line budget analysis) vs. reality (spending bill with thousands of earmarks he is unwilling to veto), I'm skeptical. I think he will concede to remove this limitation, but it was nothing more than a gimmick all along.
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1 comments:
Given the fact that his already rosy budget estimates show Obama quadrupling the debt load he inherited from W, I think O is facing the inevitable "does not compute", as his campaign promises become impossible to fund. He is seeking revenue wherevever he can find it, and will happily limit upper income deductions, even if it hurts poor people the most. Chances are, the poor will blame Republicans and "rich people" anyway, and O can always say he was just trying to get them to pay their fair share.
It's vintage old-school misrepresentation and class-envy politics, going back to the old liberal well one more time.
So much for "new tone," the "new politics," "hope" and "change."