Obama's latest budget proposal will be like the last - dead on arrival. Isn't that what the dems always said about Bush's budgets? But unlike the last which did not get a single vote in the democrat controlled senate, this one likely will not be allowed to come to the floor by Harry Reid. It is a campaign document that officially for the first time lays out Obama's reelection strategy of pitting Americans against Americans. It proposes raising the taxes for those earning over $250,000 imploring them to pay their "fair share" even though they pay the vast majority of federal taxes already. It also raises taxes on capital gains, further discouraging investing. Obama even continues to say that Warren Buffett's secretary pays more in taxes than Buffett himself even though this is an obvious lie. Buffett obviously pays more dollars in taxes and although his income is from capital gains, it is taxed twice. Why Buffett continues to be let his name used so is open to speculation. But Obama assumes that instead of Americans wanting to be rich, they are so full of hatred against the wealthy that they will vote to punish the rich by re-electing him. My father used to say "Don't to be envious of anyone since it was non-productive. Rather become someone that others envy". Obama says his budget is not class warfare, it is common sense. Of course this is also a lie. Obama has figured out that there are more voters earning less than $250,000 than over. He knows that such a budget will lower productivity, lower investment and move more jobs and capital offshore. But those are secondary to his re-election. If this strategy of class envy is successful it will be a dark day for America - no pun intended.
Harold A. Black is professor emeritus in the Department of Finance, University of Tennessee, Knoxville having retired after 24 years of service. He has served on the faculties of American University, Howard University, the University of North Carolina - Chapel Hill and the University of Florida. His government service includes the Office of the Comptroller of the Currency and as a Board Member of the National Credit Union Administration. He also has served on the boards of directors Home Savings of America and its parent company, H. F. Ahmanson & Co., Irwindale, California prior to its merger with Washington Mutual Savings Bank, on the board of New Century Financial Corporation, Irvine, California, then the nation’s largest real estate investment trust and as director and later chairman of the Nashville Branch of the Federal Reserve Bank of Atlanta. He writes an occasional article for the Knoxville News-Sentinel at http://www.knoxnews.com/staff/dr-harold-black/. His web page is haroldablackphd.com