Tags: America's Forum | SOTU 2015 | Doug Holtz-Eakin | CBO | sotu | taxes | community college

Doug Holtz-Eakin: Obama's Tax Plans Adds Up to Debt

By    |   Wednesday, 21 Jan 2015 11:15 AM

The cost of providing "free" community college to all Americans who want it — a proposal in President Barack Obama’s State of the Union speech — would be some $60 billion, according to Doug Holtz-Eakin, the former director of the nonpartisan Congressional Budget Office.

"The president's proposing to spend $60 billion in 'free' community college and one of the best parts about it he hasn't mentioned who's going to pay for it," Holtz-Eakin said Wednesday on "America’s Forum" on Newsmax TV.

"In the end, he's going to claim the rich need to pay their fair share, but he's also made clear that states are going to have to pick up 25 percent of that. So $15 billion is a gift from the president to the states. Go pick up this tab."

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Obama’s myriad promises of "lots of free stuff" is nothing more than trickle down taxation, said Holtz-Eakin, who pointed out that there is no way to finance all of the president’s proposals just by taxing the wealthy.

The president’s tax policy is about picking winners and losers, he said, regardless of good tax policy.

"He's promising free community college, he also wants to have a much bigger hand out in the form of tax credits, child tax credits, earned income tax credits, married working tax credits," Holtz-Eakin said. "He needs $320 billion in additional taxes for that.

"He just announced a new housing policy ... back to the kinds of things that got us in trouble with the housing bubble. We know who picked up the tab for that as well.

"So if you listen to that speech, it is detached from any kind of budgetary reality. In fact, one of the things I noticed was he never once mentioned the data. He never once mentioned that if you take the federal budget, put it on autopilot, and live out the dream that he built so far, we have $1 trillion deficit in nine years.

"That deficit is largely borrowing, paying interest on previous borrowing, and we're headed into a debt spiral. No mention of that problem, no solutions offered."

Americans are already picking up the tab for the medical device tax, he said, in addition to paying higher insurance premiums due to mandates and taxes levied on insurance companies, as well as paying for surtaxes on payroll and investment income.

"It is a litany of higher taxes and disguise taxes as regulations and it's part of a really sad feature of the president's address," Holtz-Eakin said. "He talked about middle class economics but in fact, the middle class has suffered under his relentless higher taxes, higher spending, higher regulation approach.

"We had the average household, the median household income declined during this recovery."

Obama’s only plan for middle-income Americans is "to give up on growth and go try to take it from more affluent people and give it to the middle class."

"That's not been the American success story," Holtz-Eakin said. "That's not how we do business."

He told "America’s Forum" viewers to mark their calendars for Feb. 2, when Obama puts out the budget.

"Ask yourself, 'how is this going to add up?'"

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The cost of providing "free" community college to all Americans who want it - a proposal in President Barack Obama's State of the Union speech - would be some $60 billion, Doug Holtz-Eakin, the former director of the nonpartisan Congressional Budget Office, tells Newsmax TV.
Doug Holtz-Eakin, CBO, sotu, taxes, community college, obama
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2015-15-21
Wednesday, 21 Jan 2015 11:15 AM
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