Share on Google Plus Share on Twitter Share on Facebook 1 Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend (1 Shares)  
Printer Friendly Page Save As Favorite View Favorites View Stats   8 comments

OpEdNews Op Eds

Why is the White House's Council of Economic Advisers Helping the Republicans?

By (about the author)     Permalink       (Page 1 of 1 pages)
Related Topic(s): ; ; ; ; , Add Tags Add to My Group(s)

Supported 1  
View Ratings | Rate It

opednews.com Headlined to H3 11/26/12

Become a Fan
  (105 fans)


Why is the White House trying to scare average people about the consequences of the "fiscal cliff?"

If the President's strategy is to hold his ground and demand from Republicans tax increases on the wealthy, presumably his strongest bargaining position would be to allow the Bush tax cuts to expire on schedule come January -- causing taxes to rise automatically, especially on the wealthy.

So you'd think part of that strategy would be reassure the rest of the public that the fiscal cliff isn't so bad or so steep, and that at the start of January Democrats will introduce in Congress a middle-class tax cut whose effect is to prevent taxes from rising for most people (thereby forcing Republicans to vote for a tax cut for the middle class or hold it hostage to a tax cut for the wealthy as well).

But today (Monday) the White House's Council of Economic Advisers issued a report warning that if Congress allows the Bush tax cuts to expire January 1 and the Alternative Minimum Tax to kick in, the middle class will face sharply-rising taxes.

The result, says the Council of Economic Advisers, could slow consumer spending by 1.7 percent next year, and slow overall economic growth by 1.4 percent. The loss of $200 billion in consumer spending is just about what American families spent on all the new cars and trucks sold in the U.S. in the last year, according to the report. About $36 billion less would be spent for housing and utilities, $32 billion less for healthcare, and $26 billion less for groceries and at restaurants.

This kind of fear-mongering plays into Republican hands.

 

http://robertreich.org/

Robert Reich, former U.S. Secretary of Labor and Professor of Public Policy at the University of California at Berkeley, has a new film, "Inequality for All," to be released September 27. He blogs at www.robertreich.org.

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

Go To Commenting
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact Author Contact Editor View Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The Republican's Big Lies About Jobs (And Why Obama Must Repudiate Them)

Paul Ryan Still Doesn't Get It

What Mitt Romney Really Represents

The Minimum Wage, Guns, Healthcare, and the Meaning of a Decent Society

Why the Right-Wing Bullies Will Hold The Nation Hostage Again and Again

The Gas Wars

Comments

The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
6 people are discussing this page, with 8 comments
To view all comments:
Expand Comments
(Or you can set your preferences to show all comments, always)
Because if Reich is suggesting that Obama is a fis... by PCM on Monday, Nov 26, 2012 at 4:26:13 PM
Prof Reich isn't doing his share either.However, t... by BFalcon on Tuesday, Nov 27, 2012 at 2:05:29 PM
Because they are and it's not the side of the 99%.... by frang on Monday, Nov 26, 2012 at 11:47:45 PM
Let's not pretend to be so naive. The White House'... by Rico D. on Monday, Nov 26, 2012 at 11:54:09 PM
This is but another example of our One Party "Good... by Dennis Kaiser on Tuesday, Nov 27, 2012 at 6:44:59 AM
Completely agree, it's historical fact. Just becau... by Rico D. on Tuesday, Nov 27, 2012 at 11:20:31 AM
Straight from the Rainbow Stew category.In fact I'... by Poor old Dirt farmer on Tuesday, Nov 27, 2012 at 9:50:43 AM
Yep....just like he should know the true character... by Rico D. on Tuesday, Nov 27, 2012 at 11:29:03 AM