Obama’s plan won’t put a dent in the deficit. It won’t put a dent in the debt. The Dallas news reported:
The president says raising tax rates would help solve our long-term debt problem, but it’s hard to take this argument seriously, for two reasons.
First: According to the president’s own Treasury Department, the tax increases he is advocating would generate $85 billion in new revenue next year. By comparison, the monthly budget deficit in October was about $120 billion, and the total deficit for fiscal year 2012 was roughly $1.1 trillion.
In other words, the proposed tax hikes would still leave us with a trillion-dollar deficit. Meanwhile, they would do significant damage to our fragile economic recovery.
Simply put: We cannot tax our way back to budget surpluses and economic prosperity. Without major spending cuts and entitlement reforms, we will continue running huge deficits, regardless of what we do on the revenue side.