Obama Demands Tax Hikes to Pay for the Failed Stimulus

Democrats Refuse to Make Meaningful Spending Cuts, Demand that Americans Pay the Bill for their Failed Policies

• Obama on Friday once again defended his failed stimulus—but he did so while also demanding that Americans pay higher taxes specifically to pay for it.
• Let’s remember that under two years of one-party reign in Washington, Democrats ran up the national debt by $3.6 trillion. Now they’re trying to shift blame for their failed policies onto the American people.
• Meanwhile, Obama’s House Democrat allies are insisting on a new credit card without any spending cuts whatsoever to make government live within its means.

BACKGROUND:

Obama on Friday once again defended his failed stimulus—but he did so while also demanding that Americans pay higher taxes specifically to pay for it:

OBAMA SAYS RECESSION “REQUIRED” STIMULUS, BUT NOW SAYS IT HAS TO BE PAID FOR WITH TAX HIKES: “[W]e had a bad recession thatrequired a Recovery Act and stimulus spending and helping states –– and all that accumulated and there’s interest on top of that.

“And to unwind that, what’s required is that we roll back those tax cuts on the wealthiest individuals, that we clean up our tax code so we’re not giving out a bunch of tax breaks to companies that don’t need them and are not creating jobs, we cut programs that we don’t need, and we invest in those things that are going to help us grow.” (“Press Conference by the President,” The White House, 7/15/2011)

BUT OBAMA ALSO THINKS HIS STIMULUS’ FAILURE TO CREATE ITS PROMISED JOBS IS FUNNY … HA HA?: “Obama smiled and interjected,‘Shovel-ready was not as … uh .. shovel-ready as we expected.’ The Council, led by GE’s Jeffrey Immelt, erupted in laughter.” (“Obama Jokes at Jobs Council: “Shovel-Ready Was Not as Shovel-Ready as We Expected,” Fox News, 6/13/2011)

OBAMA CLAIMS HE WANTS DEFICIT REDUCTION, BUT WON’T CUT HIS OWN BUDGET: “Proposed House cuts to the Executive Office of the President’s (EOP) budget will hurt administration efforts to cut the deficit, the White House argues.” (Peter Kasperowicz, “White House: Budget Cuts to President’s Office Hurt Debt Efforts,” The Hill, 7/18/2011)

Let’s remember that under two years of one-party reign in Washington, Democrats ran up the national debt by $3.6 trillion. Now they’re trying to shift blame for their failed policies onto the American people:

FEDERAL BUDGET DEFICITS TO PASS $1 TRILLION FOR THIRD STRAIGHT YEAR: “The federal budget deficit is on pace to eclipse $1 trillion for a third straight year as congressional and White House negotiators try to hammer out a deal on the nation’s budget.” (Vicki Needham, “Federal Budget Deficit Nearing $1 Trillion,” The Hill, 7/13/2011)
AFTER DEMOCRATS INCREASED DEBT BY $3.6 TRILLION IN TWO YEARS: “In January 2009, the national debt stood at $10.6 trillion. Fueled by the so-called stimulus, this debt grew by $3.6 trillion in just two years. The magnitude of this amount is difficult to grasp without a comparison. Under Mr. Obama, government has been borrowing $4.6 billion each and every day. That’s more than it cost to construct the world’s tallest building, Dubai’s Burj Khalifa. In other words, the amount of future productivity being sapped from the American economy would be sufficient to construct a new 160-story skyscraper every day of the year.” (Editorial, “Obama Spending Hits New Records,” The Washington Times, 3/8/2011)

STANDARD AND POOR’S FOLLOWS MOODY’S, THREATENS RATINGS DOWNGRADE WITHOUT DEFICIT REDUCTION: “A day after Moody’s Investor Service warned that the United States’s credit rating was in danger of being lowered, Standard & Poor’s followed suit Thursday.

“S&P, one of the three major ratings agencies, said it ‘has placed its ‘AAA’ long-term and ‘A-1+’ short-term sovereign credit ratings on the United States of America on CreditWatch with negative implications.’

“S&P said the move ‘reflects our view of two separate but related issues.The first issue is the continuing failure to raise the U.S. government debt ceiling so as to ensure that the government will be able to continue to make scheduled payments on its debt obligations. The second pertains to our current view of the likelihood that Congress and the Administration will agree upon a credible, medium-term fiscal consolidation plan in the foreseeable future.‘” (“S&P Follows Moody’s on U.S. Debt,” Politico, 7/14/2011)

Meanwhile, Obama’s House Democrat allies are insisting on a new credit card without any spending cuts whatsoever to make government live within its means. When will Democrats take responsibility for their policies and stop trying to make American families pay their bills?:

REP. PETER WELCH (D-VT) SAYS IT’S A NEW CREDIT CARD WITH NO STRINGS ATTACHED OR DEFAULT: “Rep. Peter Welch (D-Vt.), a chief deputy whip who’s championed a straight up vote on raising the debt limit, portrayed a clean vote as the only remaining alternative before the government maxes out on its borrowing authority on Aug. 2 – saying it was difficult for him to see a path to an agreement with the GOP.

“‘It’s looking like default or a clean extension,’ Welch said in an interview. He said he was getting support from ‘more and more Democrats, including some members who did not vote for the clean extension on the floor however many weeks ago … we’re absolutely intent that we’re keeping our AAA credit rating.'” (Seung Min Kim, “Hoyer: Dems would support a ‘clean’ debt ceiling vote,” Politico, 7/15/11) 

DEMOCRAT WHIP STENY HOYER (D-MD): “I have told Mr. Boehner that our party stands ready to ensure we do not default on our debts. And I believe that almost every member of our party if not every member of our party would vote on a clean extension to make that happen.” (Remarks from Steny Hoyer during Press Conference, MSNBC, 7/15/2011)