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Jewish World Review December 11, 2012/ 27 Kislev, 5773 Obama's pipe dreams and fairy tales By Glenn Garvin http://www.JewishWorldReview.com | (MCT) During the campaign, President Obama impressed everybody by singing an impromptu version of the old Al Green ballad "Let's Stay Together." But now the White House has switched tunes. The president's new favorite is "Young At Heart," a Frank Sinatra hit of the 1950s. You could hear it playing in the background last week when he talked about the budget: Fairy tales can come true, it can happen to you ... Actually, it's not really a new tune. For years, Obama has been telling everybody that there isn't any problem with the U.S. economy that can't be cured by taxing the rich. And that's his escape route from the fiscal cliff of budget cuts and tax increases schedule to hit us in January. The rich will just pay "a little bit more" and we'll not only get that deficit under control but even have enough left over for an additional $200 billion stimulus program like that one that worked so well in 2009. The song is so sweet that millions of Americans have fallen under its sway. A recent Washington Post/ABC shows that fully 60 percent of the country agrees with Obama that new taxes on the "rich" — defined in this poll as anybody with household income of $250,000 a year or more — are the solution to the deficit. The problem is that the fairy tale that most resembles Obama's story of the rich with bottomless pockets is Rumpelstiltskin, in which a drunken miller brags to the king that his daughter can spin gold out of straw. That story ends badly when it turns out the miller is lying. So will Obama's. Even if the president's estimate that his new tax will generate $1.2 trillion over the next decade is correct (and it won't be, because rich people are infinitely adept in figuring new ways to hide or shelter their income from the IRS), that's not within a country mile of the $7.1 trillion that needs to be trimmed out of the deficit. Instead of listening to Obama's recitations of glass slippers and fairy godmothers, Americans ought to be reading "Choices for Deficit Reduction," a report issued last month by the nonpartisan Congressional Budget Office. Because it came out just two days after the presidential election, when everybody was heartily sick of politics, the CBO report got comparatively little attention. But — even in the cautious language of Washington bureaucrats — it's like a cold shower for the president's budget fantasies. The problems with the U.S. budget are "fundamental" and cannot be passed off with gimmicks or accounting legerdemain, the report says. Federal debt, if left unchecked, will hit 90 percent of GDP over the course of the next decade, it predicts, and the United States "would quickly head into fiscal territory unfamiliar to it and most other developed countries." Zeroing in on Social Security, Obamacare and entitlements as the heart of the problem, the report warns that they can be sustained "only by raising taxes substantially, relative to current polities, for a broad segment of the population." How broad? Well, as broad as that fiscal cliff, and then some. If Congress and the president let all those Bush-era tax cuts expire next year — not just those on the rich, but all of them, including those on the middle class — it will raise only about three-quarters of the money needed for deficit reduction, the report says. That's because the idea of an untaxed American plutocracy — the greedy villains in Obama's fairy tale — has about as much factual basis as unicorns. As the report notes, in 2009 the poorest fifth of U.S. households paid about 1 percent of their income in federal taxes. The middle fifth paid about 11 percent. The top fifth — households with an average income of $223,500 or above, roughly corresponding to Obama's definition of "rich" — paid 23 percent. That means that people in those homes already work more than a day each week just to pay the federal government. State and local taxes (including property tax) push that much closer to two days. Rumpelstiltskin ends with the miller's daughter making an unseemly deal with an ogre to help her turn the straw into gold. Obama's fairy tale, if it doesn't veer back to reality, will have a much sadder final chapter. "Federal debt cannot grow indefinitely," the CBO report notes. "... Rising debt could itself precipitate a fiscal crisis." Lenders jack up interest rates, credit is sucked away, and the U.S. economy shrivels like a wicked witch doused with a bucket of water. And nobody lives happily ever after. Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here. Comment by clicking here. Glenn Garvin is a columnist for the Miami Herald. Previously: 11/11/12: The truth about the movie 'Won't Back Down' 11/01/12: In this clash of civilizations, the West seems to have a lot of fifth columnists 9/25/12: Obama's jobs math doesn't add up 6/22/12: Bath salts controversy --- when politicians become pushers 4/26/12: When R2D2 and C3P0 go to war 2/16/12: The profound lies of Deep Throat 12/22/11: Great moments in history? Not so much 11/30/11: Giving bullies a veto on the First Amendment 09/15/11: ‘Bloodsucking Progressives Must Die’ video game is acceptable? 06/28/11: Send this one back where it came from 06/23/11: Doesn't this president remind you of someone? 05/26/11: A new standard of racial correctness 05/12/11: ‘Vast wasteland’ speech 50 years later 04/13/11: Bay of Pigs fiasco offers lessons for Obama's Libya adventure 03/03/11: Inconvenient truth for teachers' unions 07/10/10: Still looking to score 06/22/10: Ripe for fraud and abuse 05/25/10: Big Brother picks your pocket 11/04/09: Have conservatives scored a stealth prime time drama? 08/27/09: Left's been out for blood, too 08/13/09: What's not being celebrated 07/31/09: Pay-or-play means more lost jobs 07/16/09: OAS turns a blind eye to violations by left 07/02/09: Nothing so shocking about this coup 06/22/09: Libs' darling strikes out 06/03/09: Yes, America should read Sotomayor's speech in context 05/20/09: ‘Bloody’ mission goes awry 05/07/09: The problem is they aren't just goofin' 04/30/09: Why can't students say ‘guns’ in school? 04/08/09: When non-U.S. citizens vote 03/2e/09: Of course the AIG bonus boys — the ‘best and the brightest‘ — deserve their loot 03/12/09: No choice in Free Choice Act © 2009, The Miami Herald Distributed by McClatchy-Tribune Information Services

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