COMMENTARY | President Barack Obama today removed all doubts about his tax and spend roots proposing $1.5 trillion in new taxes over the next decade on the wealthiest Americans, while proposing a similar amount of cuts.
The problem with Obama's proposal is that is cannot pass. Since it generates revenue, the Constitution requires the bill to originate in the House of Representatives. The Republican majority in that chamber will never pass a bill like that. House Speaker John Boehner, R-Ohio, has been clear throughout the year that there will be no new taxes passed by the Congress and was quick to condemn the new tax proposal shortly after Obama's speech.
Multiyear budget cuts are a political fantasy in Washington. No action of this Congress is binding on another Congress, so any deal to cut spending in future years would have little weight after the next Congress is elected. Budget cuts projected over a 10-year span are simply political theater that would never see the light of day by time they roll around.
Obama said deficit savings cannot be accomplished by budget cuts alone. Wrong!
Every budget submitted to Congress has the opportunity to reflect significant budget cuts. But Obama is especially astute at creating programs that have future effective dates either when he is safely re-elected to a second term or so far into the future that it would have no effect on his presidency. Those aren't the type of cuts the federal budget needs right now.
Obama clearly punted on the issue of Social Security, Medicare and Medicaid reform. His proposal would trim provider-related reimbursements, but not touch beneficiary costs or benefits. There can be no meaningful reduction in deficit spending without looking at these type of mandatory spending programs regardless of how politically hot they may be.
Some of Obama's proposals warrant consideration. He forecasts $1.1 trillion in savings from ending the Iraq and Afghanistan wars. It's about time. The U.S. has never fought a war for 10 years -- sustaining that fight has broken the U.S. treasury. If he can bring the troops home - and avoid handing out foreign aid to the same countries -- he will accomplish that part in future savings.
Congress will have to consider these proposals -- not just the super committee charged with finding budget cuts before Thanksgiving. Because of that, there is no chance it will ever become law.
