That Giant Sucking Sound You Hear…

By Robert Romano
Last week, the Obama Administration released its Friday afternoon surprise: another $1.47 trillion in debt for the year of 2010. The news comes in the context of imminent tax increases due to occur on January 1st, 2011 as the Bush tax cuts expire.
As reported by Art Laffer in the Wall Street Journal, “the highest federal personal income tax rate will go 39.6% from 35%, the highest federal dividend tax rate pops up to 39.6% from 15%, the capital gains tax rate to 20% from 15%, and the estate tax rate to 55% from zero.”

The Obama Administration is okay with that. So are Nancy Pelosi and Harry Reid, who have no plans to make the Bush tax cuts permanent. Democrats are telling the American people that rather than cutting unsustainable spending and balancing the budget the way families balance theirs, that instead they want taxpayers to finance Washington’s increasingly indefensible spending habits.

Today, spending reflects revenues as the political class wishes them to be, not as they actually are.
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