Obama's Tax Plan Would Balloon Deficit, Study Finds

Washington Post:

On the campaign trail, Sen. Barack Obama bashes President Bush for "reckless" economic policies that are "mortgaging our children's future on a mountain of debt." But the Democratic presidential candidate has adopted a key component of Bush's fiscal policy: A novel bookkeeping method that guarantees that the $9.5 trillion national debt will get much bigger.

When Obama promises to cut taxes for the middle class without increasing the deficit, he is measuring his proposals against the large deficits that would result from Bush's plan to extend his signature tax cuts beyond their 2010 expiration date. Because Obama wants to eliminate some of the Bush tax cuts, he would bring more money into the Treasury, permitting him to pay for new programs without increasing the deficit even more.

But under current law, all the tax cuts expire and the deficit disappears completely. Democrats in Congress have vowed to preserve the Bush tax cuts only if they can cover the cost and keep the budget in balance. Measured against current law and against the promises of his fellow Democrats, Obama would rack up huge deficits. According to a recent analysis by the nonpartisan Tax Policy Center, Obama's tax plan would add $3.4 trillion to the national debt, including interest, by 2018.

Read the whole story: Washington Post

Comments

[the964kid]

This is one of those b.s. stories that will let McCain quote it in some upcoming attack ad. Judging my the comments here, fortunately most of us are not buying this stunt.

I'm from the DC suburbs and this is also why I canceled my subscription to the Washington Post.

[the964kid]

Gimme a break, u can't look at this tax plan without taking money into account that tax payers would save by getting out of Iraq. The tax plan is in conjunction with a host of other programs that all bring savings to government spending. This study is ridiculous. I love these partisan studies that may or may not include crucial numbers that would completely change the outcome of the 'study.'

[jrterrier]

but obama wants to move into afghanistan so any savings from moving out of iraq is minimal

[RatgurlSD]

Really? How many troops are we currently paying to be in Iraq? & how much are we paying the mercenaries at Blackwater to be there? And how much are we paying the vendors to support those troops? And how much money are we giving Halliburton to rebuild Iraqi inrastructure? And how about all that money we're giving to Iraqis in CASH to bribe them to police their own country? And just how much of all of that do you think would be transferred to Afghanistan?

[Gabrielle]

TAX THE RICH AS THEY SHOULD BE TAXED AND YOU CAN HELP EVERYBODY ELSE and give tax breaks to the ones who need it most

[RatgurlSD]

OR incorporate a flat tax with no loopholes where EVERY American contributes 15% of their income to the infrastructure with no exceptions. Watch the American world come into balance.

[Podewumun]

So according to you, a minimum wage employee making a whopping $11,960 a year should be required to fork over $1794 in income taxes? Sorry, but that's not only stupid, it's cruel.
The so-called "flat tax" benefits NO ONE but the rich.

[fishsandwichesr2good]

I'm not sure which is more amazing: WashPo running this story or Huffpo linking to this story.

[joebhed]

OK, folks, again.

Here's the gig.

It's the PRIVATE debt-money system, that which FORCES the government to BORROW money that the banks do not have, that is responsible for ALL THIS crap.
So, Obama cannot help you fix the environment without TONS of new Debt.
Of course, neither can McCain.

YOU are the only ones that can stop this system.

Private DEBT_MONEY creation is not necessary.
It was and will soon be illegal again.

We MUST abolish the FED private-banking cabal, and begin what was presented to FDR by the Chicago School economists as the "Chicago Plan".

Look it up!

Begin the pressure NOW to establish a government system of DEBT-FREE credit creation rather than the private bankers franchise on debt.

Do the math.
We can never make any progress without replacing the debt-money system.

This is getting to be like "LAST CALL FOLKS!".

Try this.
We have almost $10TRILLLION right now.
These huge numbers are only for THE TAX PLANS.

EVERY new dollar created in this country is created as DEBT.
So, how can we ever get ahead?

Environmentalists?
Workers?
Economists?

The jig is up.
Read here:
http://www.monetary.org/amacolorpamphlet.pdf

If you can't do monetary reform, you can't do the envirronment, you can't do health care, you can't do infrastrtucture and you can't do jack.

Let's get on with monetary reform NOW.

[Dari]

Respectfully suggest that this 'ONE OFF' of the WaPo article belongs in EAT The PRESS, not under Politics.

More & more WaPo is leaning toward the National Enquirer in its reporting and only a few reporters deserve NOT to have their articles FULLY vetted before copying them on this site.

It's IMPORTANT that HuffPo shows a HIGHER bar for regurgitating MSM drivel and distortions of the facts evident in both the Headline & import of this WaPo column.

[fishsandwichesr2good]

Okay Dari, you make a lot of noise, but reveal nothing. What "distortions" are in the article?

[Modok]

How about that Obama is the main thrust of the title, but shows in story that McChurian's paln is worse. Hows that for "distortions"?

[chosenson]

Article Title:
"Obama's Tax Plan would Balloon Deficit"

Body of Article:
Obama's tax plan would increase deficit $3.4 billion INCLUDING INTEREST..
McCain's tax plan would increase deficit by AT LEAST $5 trillion (no mention of interest)
So we can assume that McCain Tax plan would balloon deficit approx TWICE AS MUCH AS Obama's tax plan.

Washington Post distorted the study. This is Press Warfare at its finest!

[Dari]

Read your "other' responses.....

Find it fascinating that you posted this at the EXACT same time.....

fishsandwichesr2good See Profile I'm a Fan of fishsandwichesr2good I'm a fan of this user
I'm not sure which is more amazing: WashPo running this story or Huffpo linking to this story.



So, 2good..... Does this mean you are like many other pols who LOVE having it both ways????

Or, just like to stimulate conversation.......

[Mercedes]

Let's just figure out how the heck to pay for the deficit Bush is leaving US!

If Barack Obama wants to cut my lower-middle-class taxes instead of keeping tax cuts for the rich, like McCain wants to keep on going forever and a day; I will gladly choose Barack Obama's plan.

What is needed is to end this endless 'war on terror' mindset, which can Never be ended, because Terrorism is not a person, place or group, Terrorism is a state of mind, a way of life, and there will be no way to ever find all the terrorists on the planet unless some scientist invents a way to show if one is thinking terroristic thoughts.

Bush thinks that the Iraqi OIL is going to pay us back for all the Billions we've spent on his invasion of Iraq; but now, this is the furthest thing on the Iraqi Government's minds. They want to start making OIL deals with other countries, as is their Right to do. After all, it's Their OIL, not Bush's. So, back to square one...

[tlgeiger62]

Why was this article entitled "Obama plan increases deficit" when the article itself declares that McCain's plan would raise them even higher?

Text directly from the article:

"McCain's tax plans would increase the national debt by at least $5 trillion over the next 10 years."

"Obama's tax plan would add $3.4 trillion to the national debt, including interest, by 2018."

[chosenson]

Because the writer of the article deliberately chose not to be anti-McCain, that's why. Again, a case of the press campaigning against Obama.

Did the writer even mention that in order to clean up this economic mess, we have to take measures that would increase the deficit? Obviously, Senator Obama's plan will bring economic relief to Americans with a smaller deficit increase than McCain.

THE WRITER'S HEADLINE DOES NOT REFLECT THIS!

[nellie]

Really confused and confusing article. I had written a a detailed response, but the moderator probably didn't understand it and so dumped it. Let's just say, economically, the article makes no sense, leaves out important details, and is deliberately misleading. If I feel like writing the whole thing out again, I will.

[joebhed]

Looking forward to it, Nell.

Give it to us in bite-sized bits.

Please.

[Purobi]

Thanks. I am not the only one who could not understand a single point in the article.

[chosenson]

The "point" is simple. It's otherwise known as THE PRESS CAMPAIGNS AGAINST OBAMA!

[ultramagnetic]

Did anyone at Huffingtonpost, actually read the wholre article? Its a Washington Post hit piece that buries in the middle of the story, "According to the Tax Policy Center, McCain's tax plans would increase the national debt by at least $5 trillion over the next 10 years." Hello? Who's plan really ballons the national debt?

[joebhed]

$3.5 TRILLION !

$5 TRILLION !

What's a couple of TRILLION among people who don't understand SQUAT about how the money system works?

They're probably both a little underestimated.

Wait for nellies reply.

[chosenson]

You're not accurate either

$3.5 TRILLION (with interest included)

"AT LEAST" $5 TRILLION (without mentioning interest)

How much do you want to bet it's more like

$3.5 TRILLION

$8 TRILLION

[CyberGal619]

Tsk Tsk, HuffPo. So misleading - but then so was the WaPo headline and article. Its pretty much the gist of all the comments. Ok, back to Talking Heads.

[AliHajiSheik]

I love how the wapo buries in passing in the middle of the article the fact that McCain's plan would result in a deficit of an $1.6 trillion more than Obama's.

Who writes this stuff? This is so misleading.

[kitrat33]

Do you people on the left really think socialism can work without destroying a nation. All you have to do is look at every single nation in the history of the world that has tried it to know that it is a vast failed experiment.

Obama can not give you the world like he promises to get your votes. Wake up out of your utopian dream.

[YunekFlava]

We can always rely on Right-Wing CRAP to jar us back to reality. Thank you kitrat.

[joebhed]

did somebody say something about socialism?

what's that?

[OliverTwist]

This story needs a new headline:
"McCain's Tax Plan Would Baloon the Deficit More, Study Shows."

The anti-Obama spin is what you get from the Washington Post.

[ConcernedAboutRFuture]

That's why it's called the WASHINGTON post.... it just does what Washington says.

[Jrtrollspaceman]

the truth hurts you, sorry