Mr. Obama to Voters: I Will Veto Any Deficit Reduction Plan that Does Not Raise Taxes on the Wealthy

Voters to Mr. Obama:  Right, Sure You Will

On Monday President Obama made his deficit reduction plan public, this time taking the very sensible approach to addressing a crowd at the White House, and not trying to gain electoral advantage from addressing a joint session of the Congress.  On the spending side the plan calls for

cuts in domestic spending would bring the total spending savings to $580 billion. These cuts include scaling back farm subsidies, altering pensions and benefits for members of both the civil service and military service, and other changes in government operations.

About $1.1 trillion in savings is also expected from winding down the wars in Iraq and Afghanistan.

But the real news is the President’s threat to veto any plan that does not contain tax increases.  If the Deficit Reduction group of legislators does not pass a plan, or the plan does not pass Congress, or if the President vetoes a Plan, large automatic spending cuts in defense and domestic programs go into effect.

So what is likely to happen.  Well, here are the alternatives.

1. Congress includes tax increases in the deficit reduction plan.

You must be kidding, right.

2. The automatic cuts go into effect, including large Defense Department cuts.

You must be kidding, right.

3. Obama follows through and vetoes legislation that does not have tax increases on the wealthy.

You must be kidding, right.  Ok some explanation is in order.  Here is what Mr. Obama actually said. 

“I will not support any plan that puts all the burden for closing our deficit on ordinary Americans,” he said. “And I will veto any bill that changes benefits for those who rely on Medicare but does not raise serious revenues by asking the wealthiest Americans and biggest corporations to pay their fair share.

See, he didn’t say he would veto a plan that doesn’t have tax increases, he said he would not “support” such a plan.  The veto threat only comes if the plan has cuts to Medicare.  So Mr. Obama can sign, or not sign and allow a plan that does not have tax increases to go into effect, and still claim he didn’t “support” it.  This is a lawyer talking, remember.

4. No plan is adopted, and the Congress, citing national defense issues, rescinds the planned cuts in Defense spending while keep the major cuts in spending on the low income groups, the elderly, children, students etc.

Anyone want to forecast that a deficit reduction plan that only cuts social programs and does not cut Defense spending and does not raise taxes on the wealthy is what passes?  What, everyone believes that.  Well then so does The Dismal Political Economist.  Who is he to go against unanimity.