You just can’t make this stuff up. President Obama wants more stimulus spending to offset the expected drag on the economy that his proposed tax hikes would cause. Good grief.
But President Obama’s first offer to avoid going over the “fiscal cliff” holds out the hope of at least some stimulus. This would include extending the 2 percentage point Social Security payroll tax cut, boosting a tax incentive to businesses, establishing a $50 billion bank for long-term infrastructure projects, and extending unemployment benefits.
The total bill: about $255 billion out of the federal government’s pocket – an amount the GOP would likely say needs to be offset by spending cuts elsewhere.
The argument in favor of such stimulus? The tax measures, at least, could minimize the drag on the economy from Mr. Obama’s proposed tax increases on the wealthy.
“The increases in the top two income tax brackets would put a drag on consumption, so I think, from the Obama point of view, the spending or tax cuts are designed to offset that drag to consumption,” says Michael Brown, an economist at Wells Fargo Securities in Charlotte, N.C. (Read More)
This guy’s unbelievable. He makes all of these ludicrous demands and then takes his show on the road to call anyone standing in his way “Scrooge.”
Update: Linked by the First Street Journal – thanks!