Video: CNN notices how out-of-touch Obama is

posted at 10:00 am on July 26, 2011 by Ed Morrissey

Has the media begun to notice the wheels coming off at the White House? First, Politico notices that Barack Obama still hasn’t offered any solutions despite the late hour of the fiscal crisis at hand. Last night, CNN’s Gloria Borger noticed that Obama seems out of the loop on the actual proposals floating around the Beltway, too. Obama tried to pump up support for tax increases, which makes him a chorus of … one:

Of course, Obama tried to avoid using the phrase “tax increases,” instead using the catchphrase “balanced approach.” However, he did give a Rosetta Stone key to this euphemism in this passage, the only place where he says “tax increases”:

Keep in mind that under a balanced approach, the 98% of Americans who make under $250,000 would see no tax increases at all. None. In fact, I want to extend the payroll tax cut for working families. What we’re talking about under a balanced approach is asking Americans whose incomes have gone up the most over the last decade – millionaires and billionaires – to share in the sacrifice everyone else has to make.

So indeed, “balanced approach” means “tax increases.” Obama wants to tax the top 2% in order to balance the budget, a campaign line that Obama has used since 2007. Unfortunately, that won’t solve the problem, not even if we taxed the top 2% at a 100% rate. The Wall Street Journal researched this in 2009, using data from 2006, at the peak of the last expansion, when everyone was doing well:

Consider the IRS data for 2006, the most recent year that such tax data are available and a good year for the economy and “the wealthiest 2%.” Roughly 3.8 million filers had adjusted gross incomes above $200,000 in 2006. (That’s about 7% of all returns; the data aren’t broken down at the $250,000 point.) These people paid about $522 billion in income taxes, or roughly 62% of all federal individual income receipts. The richest 1% — about 1.65 million filers making above $388,806 — paid some $408 billion, or 39.9% of all income tax revenues, while earning about 22% of all reported U.S. income. …

But let’s not stop at a 42% top rate; as a thought experiment, let’s go all the way. A tax policy that confiscated 100% of the taxable income of everyone in America earning over $500,000 in 2006 would only have given Congress an extra $1.3 trillion in revenue. That’s less than half the 2006 federal budget of $2.7 trillion and looks tiny compared to the more than $4 trillion Congress will spend in fiscal 2010. Even taking every taxable “dime” of everyone earning more than $75,000 in 2006 would have barely yielded enough to cover that $4 trillion.

Needless to say, even a smaller amount of confiscation would divert capital from actual business-expanding enterprises to government bureaucracies, further slowing, stopping, or even reversing the meager level of growth we have now. That would create a decline in revenue that would probably equal or best the supposed windfall that would come from increasing the top rate to 39.5%, effectively making the deficit situation worse.

That’s the reason no one but Obama is talking about tax increases any longer — they won’t solve the problem. Only substantial reform in federal spending, including and especially entitlements, will address the fiscal catastrophe we face. Instead of showing leadership, Obama is still running his class-warfare 2008 campaign.

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Bank Teller?

Dr Evil on July 26, 2011 at 11:54 AM

In charge of printing ‘cheques’.

slickwillie2001 on July 26, 2011 at 1:30 PM

howard fineman on msnbc made the same observation last night and comrade o’donnell agreed.

it still doesn’t matter…republicans are terrorists!

DrW on July 26, 2011 at 1:33 PM

Cindy Munford on July 26, 2011 at 10:40 AM

betsyz on July 26, 2011 at 10:43 AM

steebo77 on July 26, 2011 at 10:46 AM

Keep the prayers ascending…

OmahaConservative on July 26, 2011 at 10:50 AM

I too hope that canopfor is okay.

I may not be a “big fish” here, but there are a couple places I blog that I am better known.

I realized that if something happened to me, no one would know what. So, I typed out those sites I regularly visit and blog on along with my passwords. I put it in an envelope and told my husband that if something happens to me, he should log on under my name and let those with whom I have been “friends” know about it.

Again, I truly hope it is nothing more than a computer crash or something like that.

If you are a regular poster on a site, have that information so your loved ones can let us know if something happens to you.

Jvette on July 26, 2011 at 1:35 PM

“Even taking every taxable “dime” of everyone earning more than $75,000 in 2006 would have barely yielded enough to cover that $4 trillion”

I would love to have a reference for this – maybe the IRS website? Can anyone help? This is key to our argument, I believe. There’s no more blood in the turnip if I understand this correctly.

ort777 on July 26, 2011 at 1:37 PM

Politico notices that Barack Obama still hasn’t offered any solutions despite the late hour of the fiscal crisis at hand.

It’s only baffling to those looking for traditional politics. If one looks through the Cloward-Piven lens it makes perfect sense. Obviously Dear Leader’s team can come up with as many plans as they want, so it is even more obvious that they are purposely choosing not to. So, offering nothing is indeed their plan to further paralyze America.

Dr. ZhivBlago on July 26, 2011 at 1:49 PM

Jvette on July 26, 2011 at 1:35 PM

Great advice…

OmahaConservative on July 26, 2011 at 1:50 PM

This is like a teenage son who is spending $ 1,500 a week on his father’s credit card, when his dad is making only $1,000 a week. When the bills come in, his father yells, “this has to stop!” and the son response’s “we need a balanced approach to fix this problem. I’ll agree to start spending $ 1,450 a week some time next year and you agree to get a second job. After all, we both have to make sacrifices.”

Fred 2 on July 26, 2011 at 1:56 PM

Fred 2 on July 26, 2011 at 1:56 PM

I can top that.

The patient weights 847 pounds. The doctor says “yeah, maybe he should eat less, blah, blah, blah, but he really needs to work out more”.

Really Right on July 26, 2011 at 2:02 PM

Gloria Borger, the face of rabid PMS. *shudder*

infidel4life on July 26, 2011 at 2:08 PM

It was a speech entirely divorced from reality. The Senate Democrats can’t pass tax hikes. The grand bargain can’t get through the Congress with jumbo tax hikes. It is he who rejected a deal that had the agreeement of House and Senate leaders. You have to wonder why he set the bar so high. He’ll face the flood of “President Capitulates!” headlines when it doesn’t come about. But the answer lies in the sole and consuming passion of this White House: reelection. Hence, the class warfare and the excuse-mongering.

Schadenfreude on July 26, 2011 at 2:39 PM

Apparently the financial markets have already priced in a cut in our credit rating, and don’t seem too terribly concerned. I guess Bambi’s transparent attempts to cause a market panic aren’t working, pretty much the way everything else Bambi tries doesn’t work.

http://www.bloomberg.com/news/2011-07-26/rating-downgrade-for-u-s-is-now-base-case-amid-budget-impasse-isi-says.html

eyedoc on July 26, 2011 at 2:39 PM

Obviously, I expect that bill can and will pass the Senate, and be sent to the President for his signature. If the President signs it, the ‘crisis’ atmosphere he has created will simply disappear.” (In other words, after Reid fails to get cloture on his phony cuts, the Senate will go back to the House bill that was actually a joint effort by Reid, Boehner and Minority Leader Sen. Mitch McConnell. Boehner benefits from low or no expectations, and his solid, serious and optimistic address was impressive and effective. No wonder the White House was miffed that he had to share time with the Republican House leader.

Schadenfreude on July 26, 2011 at 2:41 PM

The studies quoted (ref: revenue available from the top % of earners in America) touch on a significant fly in the ointment problem with government rhetoric about spending.

Applying household themes to the government not only doesn’t always work; it also can be potently misleading.

When the President or anyone else talks about government needing to “live within it’s means” just like regular folks, they’re selling snake oil.

Regular folks have a limit to their means. It’s called net income. They know what they’re going to have so they know how much they can spend and still “live within their means.”

The government? The government, on the other hand, gets to move both benchmarks. The means and the living.

Technically (not practically but that line is becoming more and more blurred by the day — it’s as if economic principles don’t apply to us because we’re — well, we’re just more special than normal humans), the government’s means are whatever they decree their means to be.

Take the tax rate to 100% (theoretically). It’d be confiscatory but just bear with me for a moment, for fun.

Tax everyone at 100%, no deductions, for individuals or businesses. The government takes everything and parcels it out however it likes.

Uh, what does that sound like?

People assume that, because we don’t have a “socialist” form of government, or so long as we don’t actually call it that, we’re immune from that kind of economic stupidity. But, just take the tax slider (the “means” adjuster for the government) and play with it a bit. See if it doesn’t send a chill up your spine (as opposed to a thrill down your leg for the current occupier of the White House).

IndieDogg on July 26, 2011 at 3:15 PM

There is no such thing as an anti-war left.
There is the left. They are communists whose ONLY goal is the destruction of the USA. They used the war because they thought opposition to it would allow a communist to be elected. They were right.

angryed on July 26, 2011 at 1:23 PM

It certainly looks like the Democrats were swamped by the socialist they cultivated in their party. When Obama was rising, people like Zell Miller were on the decline in the Democrat party. The Democrat party, should be re-branded as The Progressive party or The New Left party. They no longer represent the common man or working man. That old sentiment, only exist in their rote narrative, not in today’s reality. The Democrats have become the party of Big Labor, and Trial lawyers.

Why anyone on Wall Street, who donates to their campaigns should have their heads examined, they are the opposite of the Free Market system.

Dr Evil on July 26, 2011 at 3:22 PM

In charge of printing ‘cheques’.

slickwillie2001 on July 26, 2011 at 1:30 PM

Have you ever noticed there are no Canadian call centers? What happens if something breaks or doesn’t work in Canada….oh yeah right, they put you on a list ;)

Dr Evil on July 26, 2011 at 3:24 PM

We can deplore GWB’s domestic spending, and yet admire him for doing things like this.

We can even applaud Obama for getting Bin Laden (or, more accurately, letting the order to get him be carried out) and deplore everything else he’s doing.

See how that works, bayam? It’s called “nuance“.

Mary in LA on July 26, 2011 at 1:23 PM

President, and Mrs Bush both went to Ft Hood after the massacre. They tried to keep it as low key as possible so the media wouldn’t swamp the recovery efforts, and investigation.

Dr Evil on July 26, 2011 at 3:28 PM

I agree with Obama. If you want rich people to pay more in taxes, ask them to do it. If, as bayam the retard believes, Wall Street is filled with rich people who are heartbroken because Obama isn’t making them pay more taxes, then he should get plenty of voluntary contributions from these folks. The rest of us who have at least two brain cells to rub together can politely decline, and find better things to do with our money besides laundering it through the federal government.

Unfortunately, the liar in chief isn’t asking anyone to do anything, unless paying taxes is now voluntary.

xblade on July 26, 2011 at 4:25 PM

Jvette on July 26, 2011 at 1:35 PM

I use Roboform and have heard good things about LastPass… basically if I go the designated person will close all my accounts, though leave my old material available by putting those with them into hiatus permanently.

ajacksonian on July 26, 2011 at 5:41 PM

80% of Americans want a tax increases.

vcferlita on July 26, 2011 at 10:04 AM

R U f***ing CRAZY?

I challenge you, vcfrlita to go out in the street and ask 10 normal people if they want to pay more taxes. Take your meds bugzilla.

jarhead0311 on July 26, 2011 at 7:14 PM

ajacksonian on July 26, 2011 at 5:41 PM

Thanks, I’ll check it out.

Jvette on July 26, 2011 at 9:50 PM

Meet Misters Cloward and Piven. They described a strategy to bring down the country by overwhelming its institutions. What is happening is right out of their playbook. Obama wants this nation to fail, to fall apart.

{^_^}

herself on July 27, 2011 at 4:23 AM

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