Bipartisan spanking of Obamanomics
by Tom Donelson on November 12, 2010 at 9:32 AM
The Obama Deficit reduction commission did something totally unexpected; they proposed a plan that actually promoted tax and budget reforms. I realize that one could find something to disagree with on this, and this is the opening salvo of serious budget deficit debate, but it does several things:
- It calls for reduction of individual tax rates and the elimination or reduction of deductions. One can argue that this could or will lead to overal tax increases with the deduction elimination but it accepts in principle, marginal tax rate matters. It calls for lower tax rates.
- It calls for the lowering of corporate tax rates to be more competitive with the world.
- It calls for reform of major entitlement programs and while some of these reforms will place a higher price for wealthy, it does recognize what should be obvious- Social Security and Medicare are not retirement programs but welfare programs to provide base coverage for our seniors. (The reality is that Social Security is organized as Ponzi scheme and if a private company organized a retirement plan in the same way, they'd be in jail.)
- It places suggested percentage for the optimal government spending as part of the Gross National Product. As one business pundit noticed, this would eliminate much of the spending mandated by Obamacare.
There is much to agree with and much to disagree with but Democrat Erskine Bowles and long time Republican Alan Simpson put the intellectual case for Obamanomics in the shredder and simply rejected it. This is a bipartisan spanking of Obamanomics.