The GOP has painted themselves into a corner. They have so long insulted and vilified Obama that they simply cannot embrace ANYTHING that emanates from the White House. If they did, why, that would be TREASON. To the GOP, that is. It must be embarrassing to be a Republican in Washington these days. D'oh! I keep forgetting that they are incapable of shame or introspection.
President Obama’s New Budget
President Obama’s fiscal 2016 budget, released on Monday (2/2), pulls together the themes and policies set forth in his State of the Union address and other recent speeches and gives them a force and coherence — an ambitiousness — that a more piecemeal delivery does not convey.
As a practical matter, the budget details what Mr. Obama believes needs to be done to help ensure a more prosperous and inclusive future for ordinary Americans, including greater contributions from corporate America and from those atop the wealth ladder. Politically, it seeks to frame the terms of the debate for the 2016 presidential election season. If Republicans simply reject those terms — if they can’t discuss the ideas and act on them — they may find themselves, deservedly, struggling for a response.
The core of the president’s 2016 budget is a plan to boost the middle class by helping low- and middle-income earners pay for education, child care, job training and other needs, and by vastly expanding investment in the nation’s infrastructure. These initiatives would be paid for, in the main, by nearly $1 trillion in tax increases that would fall on the wealthy and large financial institutions over the next decade.
The new taxes, however, are also carefully crafted to spur economic growth more broadly. A proposed higher rate on capital gains, for example, would discourage rampant and inefficient tax sheltering, while encouraging investors to deploy the capital in ways that are more economically productive. Ditto the financial tax that is structured to discourage speculative activities at banks that endanger the economy, as well as taxpayers.
President Obama’s budget also presents a reasonable plan for relieving the near-term damage from automatic budget cuts, also known as sequestration. Much like a bipartisan plan that reduced the harm of sequestration in 2014 and 2015, the proposed budget would raise nonmilitary discretionary spending over the capped level by $37 billion while offering a dollar-for-dollar increase in military spending.
Even with those increases, discretionary spending would fall by 2019 to its lowest level on record as a share of the economy, in data going back to 1962 — too low to meet the needs of a large economy and a growing population. Still, easing the sequester as Mr. Obama proposes would help shift the national discussion to how, when and how much government should spend, rather than how much it should retreat and retrench from its duties.
Contrary to the Republican charge that the budget is fiscally irresponsible, it addresses, albeit indirectly, longer-term problems like the financing shortfall in Social Security — just not in ways that Republicans care to acknowledge. For example, the budget assumes passage of comprehensive immigration reform, which would boost the economy by adding millions of newly legalized workers. Immigration and economic growth are essential to improving the financial health of the Social Security system.
The president’s budget will not be enacted in whole, and perhaps not even in part. But enactment is not the only measure of its success. The budget is a strong discussion draft, detailed in its particulars, unassailable in its aims and a powerful challenge to the Republicans.
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