Remember when President Barack Hussein Obama stood up in front of a joint session of Congress and the American people, to propose his American Jobs Act of 2011? Do you remember when the President told us that the proposed bill wouldn’t add anything to the deficit, but it would be paid for?
The American Jobs Act will not add to the deficit. It will be paid for. And here’s how.
The agreement we passed in July will cut government spending by about $1 trillion over the next 10 years. It also charges this Congress to come up with an additional $1.5 trillion in savings by Christmas. Tonight, I am asking you to increase that amount so that it covers the full cost of the American Jobs Act. And a week from Monday, I’ll be releasing a more ambitious deficit plan — a plan that will not only cover the cost of this jobs bill, but stabilize our debt in the long run.
This approach is basically the one I’ve been advocating for months. In addition to the trillion dollars of spending cuts I’ve already signed into law, it’s a balanced plan that would reduce the deficit by making additional spending cuts, by making modest adjustments to health care programs like Medicare and Medicaid, and by reforming our tax code in a way that asks the wealthiest Americans and biggest corporations to pay their fair share. What’s more, the spending cuts wouldn’t happen so abruptly that they’d be a drag on our economy, or prevent us from helping small businesses and middle-class families get back on their feet right away.
But, when the President’s plan came out, guess what: it was all tax increases!
WASHINGTON — The Obama administration announced on Monday a series of tax policy changes that officials say will pay for the costs of the president’s job creation plan.
The provisions, announced by Office of Management and Budget Chair Jack Lew, would raise a projected $467 billion over the course of 10 years. The American Jobs Act, as outlined by the president last week, will cost an estimated $447 billion.
The president is set to offer those pay-fors as part of a larger package of debt and deficit reduction measures that he will present to the congressional committee tasked with finding $1.5 trillion in savings. Whether the committee incorporates those measures is up to them, Lew said. If they choose not to, however, the administration said it would welcome Congress as a whole taking up the proposal.
The provisions the White House is offering as an offset are largely rehashes of tax policy changes that the president has pushed before. The primary piece would be to limit itemized deductions for individuals making over $200,000-a-year and families making over $250,000 — which Lew said would raise $400 billion over 10 years. Another pay-for would be to treat carried interest as ordinary income rather than capital gains, which Lew said would raise $18 billion. The White House is also calling for the end of tax subsidies for certain oil and gas companies, which the administration believes would raise $40 billion, and the axing of a tax break for corporate jet owners, which it believes could save $3 billion.
Much more at the link. But this much certainly tells you one thing: no matter what President Obama says he’s going to do, he is lying to you!
The President told us that he would propose even deeper spending reductions than what were agreed to during the debt ceiling increase negotiations, letting us know that the American Jobs Act would be paid for, in part, by additional spending cuts. He was honest in saying, as he has all along, that the top producers in this country should pay more — their “fair share,” he keeps calling it, even though the wealthiest taxpayers already pay a far greater share of federal income taxes (nearly twice as much) than their share of income¹ — but what he has proposed is to pay for the American Jobs Act through tax increases alone.
So, the President lied to us, again. I wish I could say that I’m surprised, but no, I’m not. After all, his lips were moving! It was a magnificent speech, starting out strong, and raising crescendo to an outright black Southern Baptist preacher stem winder by the time he was done, but it was still nothing but a lie.
¹ – The top 1% of income earners, as quantified by Adjusted Gross Income, earned 20.00% of AGI in 2008, but paid 38.02% of all federal income taxes. The top 5% (including the top 1%) earned 34.73% of total AGI, but paid well over half of all income taxes, at 58.72%. The top 10% earned 45.77% of total AGI, but paid 69.94% of total federal income taxes. Their “fair share” would be to pay less in taxes, not more. (Source)
Cross posted on Truth Before Dishonor