Shocking secret revealed: Taxing the rich can’t pay for all of Obama’s programs

posted at 1:45 pm on August 1, 2009 by Allahpundit

First CBO tells us that nationalizing health care won’t actually be “deficit-neutral,” as The One has long and insanely claimed, and now this. Everything I thought I knew about economics has been proven totally, er, true.

Normally it’d be a moral victory that the Times is even reporting this, but come on. Was there anyone so naive as to think they wouldn’t end up being shaken down by a utopian liberal with a Democratic Congress to do his bidding? Besides Christopher Buckley, I mean.

As these analysts recognize, taxing the rich has its limits both economically and politically, such that members of Congress are not likely to tap that well again and again…

Mr. Burman and others recall that in the creation of Social Security and Medicare, Presidents Franklin D. Roosevelt and Lyndon B. Johnson insisted that beneficiaries contribute through payroll taxes, both to finance the programs and to give all Americans a vested interest. The same philosophy should apply to seeking universal health coverage, they say.

“This idea that everything new that government provides ought to be paid for by the top 5 percent, that’s a basically unstable way of governing,” Mr. Burman said…

Administration officials recently began promoting a fallback. Rather than tax individuals, it would single out insurance companies that sell “Cadillac” plans. David Axelrod, a White House strategist, has described the proposal in populist terms, saying it would hit “the $40,000 policies that the head of Goldman Sachs has” and “not impact on the middle class.”

That position, analysts predict, cannot hold over time.

“There is no way we can pay for health care and the rest of the Obama agenda, plus get our long-term deficits under control, simply by raising taxes on the wealthy,” said Isabel V. Sawhill, a former Clinton administration budget official. “The middle class is going to have to contribute as well.”

Note well: Burnam and Sawhill are Clinton veterans, not conservatives. They have no skin in this game except warning their party that a 57 percent combined marginal rate on top earners may, perhaps, result in some of those unintended consequences we dare not mention lest we be branded fearmongers.

No worries, though. The stimulus is working. The economy is recovering. All is well.


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

Comment pages: 1 2

The only pleasure I will take from the looming passage of the healthcare disaster will be the (surprising) number of educated professionals I work with, under the age of 45, the lot of them clueless Obama goo drinkers, who will pay dearly for their stupidity.

bloviator on August 2, 2009 at 10:35 AM

The only pleasure I will take from the looming passage of the healthcare disaster will be the (surprising) number of educated professionals I work with, under the age of 45, the lot of them clueless Obama goo drinkers, who will pay dearly for their stupidity.

bloviator on August 2, 2009 at 10:35 AM

Pretty much says it all…IF the rules do not exempt democrat special interests like unions and government.

JIMV on August 2, 2009 at 10:43 AM

Spread the Wealth and the Debt!

BigMike252 on August 2, 2009 at 11:28 AM

“The middle class is going to have to contribute as well bend over and take it up the ass.”

But he’s Teh One! We know he’ll be gentle.

infidel4life on August 2, 2009 at 11:44 AM

Uh… you could raise taxes to 100% on every single American and it wouldn’t cover Barack Hussein Obama’s spending.

DANEgerus on August 2, 2009 at 12:34 PM

Hey Amos!

Do the math over again.
We all need to be better with exponents.
8.9 x 10**6 times 1 x 10**6 = 8.9 X 10**12 . That is 8.9 Trillion.

Don’t give them any ideas, OK?

Jimmy Doolittle on August 2, 2009 at 6:33 PM

The dollar will drop like a stone in the coming years as our debt spirals out of control. The deficit will exceed two trillion this year and will be over a trillion/year for the coming years. Obamacare is really insignificant as we are hopelessly indebted to Medicaid and Medicare already. The baby boomer retirements have already started and so the squeaky wheels on our government will soon shriek as the bearings seize…There is only one way out for the federal government, inflate away the debt…They will print money first, last and always as they cheapen the dollar to ignite the inflation that will cut away its debtload…Taxes are way too unpopular to do the job and there is not enough money anyway to pay for the entitlement committments we have which will explode with the babyboomer retirements. Now you know why the government wants to legalize our twelve million or twenty million illegal aliens…They desperately need more taxpayers. Too bad we didn’t ramp up legal immigration so that we would not now be forced to keep the criminals and illiterates along with all the others who crawl across our borders in search of a better life. We could have gotten a few million very bright, educated eastern europeans, indians and asians instead of a steady stream of illiterates from south of the border. The feds are betting the farm on these new Americans…Our farm that is to say…No matter, our new Americans will be no more successful paying our debts as the total destruction of our society as a merit based success oriented freedom loving one has been successfully corrupted so that ours no longer no right from wrong. The world watches in amazement as we de-construct the most successful economic, military, and cultural power of the twentieth century…Obama and the dems mearly get to climb to the top of the ashheap for one last socialist rave…

Nozzle on August 2, 2009 at 9:49 PM

First, I have noticed the news reports all talking about George Bush’s “Read my lips” moment. However, no one is talking about Clinton’s huge tax hike. This scenario reminds me more of the early 90s when, after Clinton promised not to raise taxes, he explained that the economy was so much worse than he thought, that he had to raise taxes.

Second, I love Obama’s citation to “many economists” believe that the economy is getting better b/c of the Recovery plan. I assume these “many economists” are the same ones that a) told Obama we had to do this, b) predicted with the “plan” unemployment would not top 8%, and c) told him that his health care proposal will lower the deficit.

Conservative in NOVA on August 3, 2009 at 10:06 AM

What happened the last time he went to Elkhart? I know he went there before and they were not impressed. It’s been months now & things are still getting worse. How’s he gonna explain that to em-with more “eventually” things will get better bs?

scottm on August 3, 2009 at 10:55 AM

Comment pages: 1 2