Payne: Should Ilitch keep it – or Obama spend it?
Posted by hpayne on July 9, 2012
From Gilbert to Ilitch to Penske, Detroit’s entrepreneurs are pouring money into Michigan trying to revitalize its economy and expand their businesses. But if Barack Obama has his way, they’ll be putting more money ” not into jobs, research, and the community – but into Washington’s fiscal black hole.
Flip-flopping his 2009 position during economic hard-times, Obama has decided to raise taxes on America’s most productive class – those earning more than $250k a year – in the midst of 2012’s economic hard times.
The president was for lower tax rates before he was against them. What has changed? In 2009 he was governing; today he is campaigning. In his signature selfish style, Obama would take America over the so-called January 1 “fiscal cliff” to feed his class-war campaign strategy.
How selfish? Obama’s position puts many members of his own party as risk in the November election. Even the liberal Associated Press couldn’t miss the president’s blatant politicking. “Obama has long supported expiration of the tax cuts for those making more than $250,000,” wrote AP today. “But the White House and the president’s re-election team are reviving his arguments now as a way to paint congressional Republicans as obstructionists and Romney as a protector of the wealthy, suggesting the GOP push for an across-the-board extension of the tax cuts puts the middle class at risk.”
Yes, the man is that shallow.
Yet, the estimated tax hike revenue would do little to restrain America’s deepening, trillion-dollar-annual deficit (reducing it by just 5 percent) – a crisis driven, not by lack of tax revenue, but by unbudgeted, unsustainable entitlement expenditures.
As little as lifting the Bush tax cuts would effect DC red ink, it would have profound effects on the national economy (the CBO estimates it would cut already anemic economic growth by 10 percent) – and in Detroit by robbing the region’s chief jobs engines of needed capital.
In 2010 – when the U.S. faced the same expiration of Bush’s tax cuts – The Michigan View consulted financial experts who estimated the increase in the top tax rate plus a capital gains hike would rob Ilitch of $50 million over five years. That is, take millions away from of one of Michigan’s most productive citizens and send it to the Washington sausage mill where politics, favoritism, and bureaucracy would grind it into nothing.
How is this good for the jobless? How is this good for Michigan?