The threat of higher taxes

Back on July 31, 2011, the Obama administration (whitehouse.gov) issued a press release entitled "Fact Sheet: Bipartisan Debt Deal: A Win for the Economy and Budget Discipline." In this press release, President Obama takes credit for the "Automatic Sequester", saying that, "We at least put in place an additional $1.2trillion in deficit reduction by 2013."

---

It goes on to say: "The deal includes a mechanism to ensure additional deficit reduction, consistent with the economic recovery. The enforcement mechanism would not be made effective until 2013, avoiding any immediate contraction that could harm the recovery. And savings from the down payment will be enacted over 10 years, consistent with supporting the economic recovery." In other words, sequester won't harm the economic recovery; instead, it"ll fully support it. Suddenly, he's blaming Republicans for the sequester, promising all sorts of gloom and doom. So why did Obama's rhetoric suddenly turn around? Why is he now directing these cuts at working men and women, instead of cutting the massive waste and fraud that he promised originally? The answer's pretty simple when you think about how likely it is that the country is already sliding back into recession. The massive debt has big industry nervous, Obama-Care has businesses cutting workers' hours or letting them go completely, and the threat of higher taxes is keeping the big money overseas. Rather than admit his economic failures, Obama is using sequester as an excuse to make unnecessary cuts. Then he'll blame Republicans for sequester, and sequester for the 2nd recession. Sylvia E. Warren Englewood, FL

---