All this while the economy is flat on its back gasping for breath, families are struggling to make ends meet, and tax revenues have plummeted -- driving up the deficit and sending the Treasury into the bond markets to borrow trillions of dollars that will make the federal debt under President Bush look frugal by comparison.
Obama has already signaled how he intends to pay for his four-year spending spree. He will borrow unprecedented amounts of money from the capital markets, he will raise taxes on people, investors and anything else that still shows signs of life in this bleak economic environment.
Both will seriously undermine any recovery in our economy.
Cash-strapped businesses desperately in need of money will find themselves competing in capital markets with the U.S. Treasury, which will crowd out private investment that will slow economic growth in future years, according an analysis by the nonpartisan Congressional Budget Office.
Obama intends to let two of Bush's across-the-board tax cuts expire at the end of 2010. That means the top-two income tax rates will automatically increase to a new average high of 40 percent when state taxes are included.
Obama said this will tax the rich, who do not pay their fair share. In fact, taxpayers in the top 10 percent not only pay most of all federal income taxes but their share of the tax-revenue pie has been growing.
And Obama's tax hikes do not just hit individuals. They will hit millions of small, unincorporated, often-family-owned businesses that pay their taxes through the personal-income-tax system just like everyone else. Hitting them with a 40 percent rate will kill job creation because this sector accounts for a huge share of the jobs in this country.
Actually, recent policy decisions by the administration have already been killing jobs.
The protectionist "Buy American" mandates in the just signed $800 billion spending stimulus bill have already triggered reprisals from trading partners at a time when U.S. exports are collapsing.
Then came the decision to stop new oil exploration and drilling in the Gulf, along with new restrictions on existing drilling, that instantly killed any new jobs that would have been created in a critical industry. Look for oil prices to rise accordingly.
This is the change Obama was talking about.
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