Obama Issues Veto Threat On Bush Tax Cuts

[kpete]

Source: Talking Points Memo

BRIAN BEUTLER NOVEMBER 22, 2011, 9:40 AM 9194 161
President Obama has threatened to veto any legislation that attempts to eliminate the automatic penalties for Super Committee failure. But on January 1, 2013 — the same day the automatic, across the board spending cuts are scheduled to take effect — all of the Bush tax cuts are set to expire. And the White House plans to use the threat of full expiration the exact same way they’re using the threat of sequestration — to force Republicans to accept a higher tax burden on wealthy Americans.

“He won’t sign a full extension,” said one Senior Administration Official at a White House background briefing for reporters on the Super Committee.

“I think if you look at everything that happens in January 2013, it is a compelling argument that there’s a need to make real policy,” said another Senior Administration Official. “And I think the fact the sequester will hit in January 2013 and the expiration of the tax cuts hits in 2013, the right thing to do is tax reform that has both positive impact on the economy and is fair in terms of distribution of the tax burden, and then balanced savings that share the burden amongst all the different parts of the budget from the very rich to people on Medicare and Medicaid.”



Read more: http://tpmdc.talkingpointsmemo.com/2011/11/obama-will-veto-attempts-to-avoid-automatic-cuts-and-full-extension-of-bush-tax-cuts-senior-official.php?ref=fpa

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President Obama immediately threatened to veto any attempt to undo the spending cuts. That means that Republicans would have to get a 2/3 rds majority to undo the first meaningful cutback in the Military budget in 60 years. In addition, if Obama also threatens to veto any attempt to restore the Bush Tax cuts in 2012 (they expire automatically on January 1, 2013), progressives will have totally changed the inequality dynamic, without having to pass a single piece of legislation.

So why aren't progressives celebrating this morning? Got me. As long time readers know, it has been my contention that the key to revival of our democracy and our economy lies in radically reordering where we spend our collective resources. That more than 60% of our discretionary budget flows to the Military Industrial Complex is just the most egregious example of Crony Capitalism. If you had suggested to me last spring that a Republican House would pass a bill cutting $600 billion from the Pentagon budget over ten years, I would have called you crazy. But that is just what happened.

MORE:
http://tpmcafe.talkingpointsmemo.com/2011/11/22/the_great_rope_a_dope_trick/index.php?ref=fpblg

[FiveGoodMen]

1. “He won’t sign a full extension”

Not a full one.

So keeping at least part of the Bush tax cuts IS on the table?

Again?

[Tippy]

6. The way I read it...this is from TPM

"If you had suggested to me last spring that a Republican House would pass a bill cutting $600 billion from the Pentagon budget over ten years, I would have called you crazy. But that is just what happened."

[frazzled]

7. The part he won't budge on is for people making $250K or more

Their cuts go. They'll have to pay higher taxes. Middle and lower middle class will, for the time being, remain.

Of course, they'll ALL go if he doesn't get a bill that ends tax breaks for the top earners. They're set to expire. So either way, taxes will go up--either on all Americans or on just the wealthier Americans.

[nineteen50]

2. All talk and balk no walk.

[Maven]

3. He won't sign a FULL extension.

There's your keyword, folks.

So essentially, the rich will still end up better off than they were before Bush, but Obama and his team will still claim they raised taxes on the wealthy.

[tcaudilllg]

4. By 30b over ten years?

[Southerner]

5. The same Bush tax cuts he approved just last year?

Yea, whatever. We're adding over $1.5 trillion in debt every year and according to this, the Bush tax cuts are only worth $60 billion a year:

http://www.politicsdaily.com/2010/12/06/obama-cuts-deal-to-extend-all-bush-tax-cuts-renew-unemployment/

His threat means very little.

[frylock]

8. bwahahahaha!!!

:rofl:

[mvd]

9. Failure, while disappointing, was better

Imagine having the thing that hurt the deficit so much being extended. If Obama sticks with the veto threat for all spending cuts including defense, this isn't so bad a move.

[red dog 1]

10. Bush inherited a budget Surplus from Clinton when he took office in 2001.

THE BUSH REPUBLICAN FISCAL LEGACY

"The Bush administration had the worst fiscal record in American history"

"When President Bush took office, he inherited from President Clinton a projected 10 year budget surplus of $5.6 trillion.
When President Obama was inaugurated, he inherited from President Bush a deficit of
$1.3 trillion for FY 2009 alone.and nearly $10 trillion more in deficits over the next 10 years."

http://www.democraticleader.gov/issues?id=0067

[Southerner]

11. Sorry, I'm not going to drink the Kool-Aid with respect to 2009

Do some research and go here: http://www.gpoaccess.gov/usbudget/browse.html

Click on the summary tables for each year. What you will find is this:

Bush proposed outlays for 2009: $3.1 trillion
Amount actually spent by the Obama administration in fiscal year 2009: $3.9 trillion

This while revenues were dropping sharply.

As far as I know, this does not include TARP, the Stimulus, nor the wars.

I guess the strategy, lacking any other, for the party I have been involved in for so long and love, is to blame Bush for the deficit regardless of the facts. I for one will hold my party accountable for most of this fiscal mess and do what I can to right the wrong. That includes informing anybody who will listen.

Let's find another candidate to replace Obama.

[red dog 1]

12. 2009 Democratic-led Congress adopted a budget that slashed the deficit in half

http://www.democraticleader.gov/issues?id=0067



"Let's find another candidate to replace Obama"?..............Are you serious?
Do you really think that would unite the Democratic Party?

I think you already drank the Kool-Aid!