• Cutting the deficit Obama, who just signed a massive stimulus bill into law, then went to Canada to, uh, celebrate, spoke in his weekly radio address about the need to cut the deficit by the time his four-year term ends. With the extra spending, he’ll have his work cut out for him. But hey, that’s why we elected him to office, right – that whole change thing?
• Already on the table He didn’t exactly come to office with a clean slate deficit-wise. He came in with a deficit of $1.2 trillion left by that Bush guy, which should probably rise to $1.5 trillion by the time all his stimulus stuff hits. In other words, imagine one of Scrooge McDuck’s giant money bins. Then imagine it empty. Then imagine jumping into it.
• How he plans to do itAmong other things, he’s suggested taxing the he investment income of hedge fund and private equity partners at higher rates. Currently, they’re taxed at the capital gains rate, which is 15 percent at most. He wants to tax them at ordinary income tax rates of as high as 39 percent. Which probably won’t make Rick Santelli happy. source

Posted by Ernie Smith • Permalink