The President’s advisors are scared of the Paul Ryan budget proposal that will be voted through the House of Representatives this Friday. Congressman Paul Ryan of Wisconsin has actually gone to the work of writing down a budget.



The White House had told itself for months that the Republicans would come up with a budget that would be a political liability for all Republicans in 2012. The Democrats hoped that Ryan would rush to balance the budget by cutting and slashing programs. Instead Ryan put forward a well thought out series of reforms that slash nothing in the short run, but instead reform spending programs to slow growth and reduce overall spending over time.

The Ryan budget takes the lessons of welfare reform and applies them to Medicaid, food stamps and almost all means-tested welfare programs. How does the Democrat party attack the very strategy that Bill Clinton signed into law to reform welfare? (Yes, Bill Clinton vetoed the welfare reform plan twice, but that has been written out of the Democrat narrative that praises welfare reform as a Clinton victory.)

If Obama hoped to attack Republicans for reforming Medicare, they are on thin ice. Obama’s own health care legislation slashed $500 billion from Medicare. Ryan’s reforms will not affect anyone over the age of 55. Those near or at retirement will see no change….except the threat of Obama’s budget slash without reforms. How can the Democrats scare older voters when there is no real “threat”?

The current regime and the Democrats are desperate to create a new concept—“spending in the tax code”. This is the theory that if the government fails to take a dollar from you it has in fact given you the dollar. In Obama’s world he owns all your income and if through a tax credit or deduction he deigns to let you keep some he has just “spent” that money.

Tax increases then become “spending cuts”...........................Nice trick.

With Obama’s reasoning no one will ever raise your taxes again. The government will simply reduce “spending through the tax code” by slashing your personal exemption or child deduction and call it a spending cut. Don’t you feel better already?



http://www.foxnews.com/opinion/2011/04/13/obamas-numbers-dont-add/

President Obama unveiled a much different tax-reform vision in his much-anticipated debt speech on Wednesday, Apr 13, 2011. He would raise tax rates on upper-income earners and small businesses. He also would eliminate deductions and credits, or so called “tax expenditures.” The president referred to these tax-expenditure reductions as “spending cuts.” In his context, they most certainly are not. They are more tax hikes.

Basically, the president is giving successful earners and small-business filers a double tax hike. That’s what it really is.

The president’s formula of estimating higher revenues to lower the deficit is completely wrong. The reality is that higher tax rates will slow the economy, inhibit new start-up companies, penalize investors, and may very well lose revenues and increase the deficit.