Friday, November 16, 2012

Math is Hard

And 50% of people are below average...
Forty-five percent of Americans now say they favor reducing the federal budget deficit with an equal balance of tax increases and spending cuts, up from 32% last year. At the same time, the percentage favoring an emphasis on spending cuts is now 40%, down from 50% last year, while the percentage in favor of reducing the deficit primarily through tax increases is unchanged at 11%.
The lifting of the Bush tax cuts on the "wealthy" would bring in approximately $80 billion (with a b) dollars, if the "wealthy" did nothing to alter their behavior to reduce their taxes, or did not stop investing at the same level. Unlikely. 

Meanwhile, the upcoming Obama deficit is $1.X trillion (with a t).  At best, under the most unrealistic assumptions, increasing the taxes on the "wealthy" to their Clinton levels can close only about 8% of the deficit.

However, the president has sold the public on a "balanced" approach of tax increases and spending cuts.  Tax increases to come immediately, and spending cuts to come, uh, later, when Congress gets around to it.  The Senate has not passed a budget in 3 years.  Yeah, that'll happen.

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