Obama Demands Tax Increase ‘Be On The Table’
At his press conference Wednesday AM, President Obama demanded that tax increases be included as part of the plan to attack the Federal defecit.
Saying, “it would be nice to keep every tax break there is, but we’ve got to make some tough choices here if we want to reduce our defecit, Obama called upon the GOP to ‘sacrifice their sacred cows’ in order to hammer out a budget. Republican House GOP leader John Boehner said there is no congressional support for tax increases, so they are “off the table.” The weakening economy and sluggish recovery (if it can be called that, say experts) have severely weakened Obama’s poll numbers, sliding to new all-time presidential lows at this period for a president. One of the arguments against increasing the taxes, especially in tough economic times like these, comes from economics.about.com:
Productivity declines as the tax rate increases, as people choose to work less. The higher the tax rate, the more time people spend evading taxes and the less time they spend on more productive activity. So the lower the tax rate, the higher the value of all the goods and services produced.