Instead of talking about the right way to raise revenue, we should focus on spending. Again, Foster: “Spending and spending alone – both the Obama spending surge and the entitlement wave now building – produces these deficits.”
As Congressional Republicans search for common ground – compromise is out, common ground is in –they are showing a lot of leg on taxes, while insisting on entitlement reform in return. Not surprisingly, they are being rebuffed. After President Obama met with labor leaders, National Journal reported Democrats shut down talk of entitlement reform.
None of this should come as a surprise. The Left has never wanted less spending. When Berman accused President Obama of caving in 2010, he went on to lament that we’d be spending “$60 billion a year on tax cuts for millionaires and billionaires rather than, for example, a national infrastructure plan that would rebuild America and put people back to work.”
Last week, I debated Cornell University professor and New York Times columnist Robert Frank. He explained that the “extra money that we manage to raise if the tax rates go back up on the top earners will not compromise economic growth because it will be spent on other things that we don’t now have money to do, like fixing the roads.” Senator Chuck Schumer (D-NY) also echoed the desire for a Keynesian stimulus.
Will President Obama cave? It is too early to tell, but if he does not, Republicans in Congress may very well end up signing off on tax increases, stimulus spending and superficial entitlement reform.