Posts Tagged ‘millionnaire tax’


Thursday, November 29th, 2012

Consider this possibility. The President is not concerned about the next four years and his legacy arising therefrom. His time frame is much longer. Let’s say 24 years. His legacy will take that much time to develop. All he has to do is keep his voting coalition together. If future candidates can count on 95% of the black vote and majorities among women and other minority groups, they will be elected. President Obama knows how to do this. He is very good at it. Electing future Presidents with this strategy will bring him immense power whether he is President or not.

Given the above, what is his short term goal? To keep his voters’ support. Over a long time. Does addressing the Fiscal Cliff help in this goal? Much better to go over the cliff and blame it on the other party, his successful strategy the previous four years. People will feel the pain of poor economic policy, but they will blame it on the Republicans. That keeps the mid-term election in play, and allows him to start – now – shooting for 2016.

Further, going over the cliff increases tax revenue greatly by taxing the middle class. And whose fault is it? Not his, under this scenario. The fault will lie with the Republicans. And a lot more tax revenue is needed if government spending is to stay at the President’s preferred 24% of GDP. Or maybe higher.

Right now it seems the Republicans are executing his play book. Far better to pass the “millionaire” tax in the house, and then check to the raiser.

Jim Hirshfield