- Aug 2010
I ran across a very interesting point in the article Tax Extension in a recent National Review issue by Reihan Salam . Mr. Salam notes that President Obama has pledged to allow the tax cuts for the richest two percent of Americans because we cannot, “afford to borrow an additional $700 billion from other countries to make all the Bush tax cuts permanent, even for the wealthiest 2 percent of Americans.”
Reihan points out that Obama is using a ten year window to arrive at that very large figure and that over that same period the middle-income tax cuts will cost $3,000,000,000,000. That's three trillion dollars. I have no idea what that really means even if I'm told how far those dollar bills would reach end to end. However, even with a public school education I am able to understand that $700 billion is less than $3 trillion. $3 trillion is in fact over four times as much money as $700 billion. Accepting these facts as true; that Obama is concerned about lost revenue and is reluctant to borrow (wish he had the same hesitation when it comes to spending) from other countries his choice is puzzling and very expensive.