Limbaugh: Debt Rise Will Lead to Tax Increases

Wednesday, 03 Aug 2011 06:28 PM

By Martin Gould

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The increase in the debt ceiling is bound to lead to tax increases as the country’s finances fail to recover, Rush Limbaugh predicted on his radio show on Wednesday.

President Barack Obama will use the floundering economy as cover, Limbaugh predicted.

“Cutting spending will be said to have triggered an economic collapse,” he said. “We're back to a new Armageddon, and the new Armageddon is that all these spending cuts — and there aren't any —  is now leading to a U.S. downturn to a recession.

“Poor Obama has no choice, has to raise taxes. I can see this coming down the road, folks.”

Limbaugh said that despite a general perception that the conservative wing of the Republican Party was the big winner in the debt negotiations, in reality noone won.

“For all this talk about winners and losers, there wasn't one thing done on entitlement reform. And that's where all the problems are. There wasn't one thing done on it. Zilch, zero, nada.

“There were no winners in this thing. Everybody lost,” he said. “There was no reduction in spending; there was no reduction in the debt; there was no attempt whatsoever. This is a classic Washington deal to kick the can down the road.”

At the time his show was on the air the Dow Jones Industrial Average was down for a ninth straight day, although it later recovered. Limbaugh said the slump was predictable despite people thinking things would improve once the deal was done.

“What in this deal is going to make anybody think that the United States is stronger in any way?” he asked, saying the threat of a default was never real.

“Default, default, default became the narrative. It became the template. We can't afford it,” he said. “The Republicans got scared to death about it, as per usual, scared to death there was going to be a default when there wasn't going to be a default, and then scared to death they were going to be blamed for it.

“The stock market's not out there thinking that anything positive happened here. There was no reduction in debt, there was no reduction in spending, they didn't do anything on taxes one way or the other, and everybody knows that tax increases are coming with Obamacare.

“There was absolutely nothing to celebrate. People with skin in the game, people with money in the game, i.e., people in Wall Street, know full well what an absolute, total joke this whole thing was.

“They all got their deal, and the market said, ‘Bleep you!’ and …the media can't believe it, and we're still going to get downgraded. Look, I hate saying 'as I said' or 'I told you,' but I did — and a lot of people did. A lot of thinking, engaged, smart people knew there wasn't going to be a default and also knew that this deal was not going to avoid a downgrade in the credit rating. Our credit hasn't improved.”

Since the deal was signed the headlines have changed to become "U.S. Debt Relief Replaced With Recession Fear," he said
.
“Now we're faced with going into another recession. Hey, the dirty little secret is we never came out of the first one. We're still in a recession, and it is deepening. It is worsening. There hasn't been any economic improvement. There hasn't been any economic recovery. "




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