Monday, September 19, 2011

At last, Obama draws a line in the sand

Now we're seeing Obama do what he should have done much earlier -- drive a harder bargain.

In the past few days, he has augmented his jobs bill by proposing a minimum tax for millionaires, one that is over and above his plan to let the Bush tax cuts for the wealthy expire at the end of this year (because many of them get most of their earnings from capital gains, which are taxed at a low rate, with no payroll taxes on those earnings either; and so some pay almost no taxes).

Now, tonight, his aides have announced that he will veto any Super Committee proposal that cuts Medicare without including tax increases for the wealthy and big corporations.

In the liberals' lamenting about the Super Committee, I don't think anyone talked about the possibility that Congress could pass their plan, and then Obama could veto it -- which presumably would kick in the same trigger cuts that both sides want to avoid.

So maybe the administration had this ace up their sleeve -- actually had a bit more power than anyone was talking about.

Now . . . if he will just stick to it.

Ralph

1 comment:

  1. Something I just read suggests that I am wrong about the "millionaire's tax" being in addition to letting Bush tax cuts expire. It apparently is "instead of," with the idea being that it's more likely to get passed by making the cut-off $1 million instead of $250,000. But will it yield as much?

    Chuck Schumer is reportedly ecstatic and says "this is a game-changer."

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