On Obama’s political goal and strategy with regard to Republicans in the upcoming fiscal cliff stand-off…
What Obama is attempting, in the fiscal cliff deal, is to get John Boehner and therefore all Republicans to confess. If he can get the Republicans to raise taxes on the rich, then Obama feels he is helping the Republicans destroy their brand, destroy how it is that they're known and understood. And in the process, what are we talking about? The fiscal cliff, what's that? We're trying to save the country. What Obama wants is for the Republicans to agree that tax cuts, from Reagan forward to Bush, created the current climate. The recession is because the rich didn't pay their fair share. In fact, the entire situation of economic inequality is because the rich haven't paid their fair share. They want the Republicans, by agreeing to raise taxes on the rich, to essentially confess that it's been tax cuts, low taxes on the rich that explain the economic calamity. Not liberalism. Not wanton federal spending. Not socialism. Not Obama. Not the Democrats. Not entitlements. Not spending. No, none of that's to blame. Those are all the fixes, you see. All the Democrat policies are how we save America from what the Republicans believe in: tax cuts for the rich.
Mark Steyn is filling in for Rush today… On the utter irrelevance of the payroll tax controversy…
Economists say that to sustain a healthy housing market, this country needs to sell 700,000 new homes every year. It was 315,000 in 2011. Now, that 700,000 figure is not going to be reached under any conceivable circumstances because Fannie and Freddie and the subprime mortgage and all the rest of it so distorted the housing market that this country now has about twice as many large family homes as it’s gonna need for the foreseeable future. So the problem here is an immense structural one. And the idea that giving you an extra $20 a week for another eight weeks… if you earn $50,000 a year, you will benefit from this dramatic Christmas gift from the President, $20 a week for an extra eight weeks, so what’s that? Two, twenty by eight, that’s $160. One hundred and sixty dollars. And we are supposed to be grateful that President Obama was so serious about this $160 – he cared so much, about you getting your extra $20 a week – that he was willing to stay in Washington, and not fly out to Hawaii for his vacation until today.
On how "tax cuts for the rich" increase revenues to the government.
There is something that happens when you lower tax rates. The first thing you do is create a positive outlook and attitude on people who hire other people. You create a positive financial outlook on people who invest their money in the growth of their business... you end up creating more jobs. As tax rates fall, small businesses have more money to grow. They're not sending as much to Washington, they keep it, they can hire more people, they can invest in the growth of the business, which is what they want to do, because that's where everybody involved in the business benefits. Is when it grows. When the business grows, large and small, obviously it creates more revenue, and more people are hired. And that's called the tax base. So you have more people earning income. More people paying taxes. So where it may not be the case that the individual rich guy sees his personal income tax bill go up, there is an increase in the number of rich guys paying taxes, so that there is more revenue generated.