What Can’t Go On Forever, Won’t


If you’ve been paying attention for the past four years, you’re not at all surprised that the Obama is on the same side of huge corporations seeking corporate welfare. But here’s what was surprising: Boeing and Obama actually faced some resistance in their fight for corporate welfare.

Bogardus attributes the resistance to the Tea Party. He’s partly right. I think he also should have mentioned Delta. You see, the U.S.-based international airline didn’t appreciate the Obama administration dedicating $40 billion in subsidies to Boeing exports, because those loan guarantees also amount to subsidies for foreign airlines — Delta’s competitors.

So, you see, the only time the special interests ever lose — or even encounter trouble — in their quest for government favors is when some other special interest distinctly stands to lose from the government favor.

How to beat the special interests: Get some special interests on your side

[A]ssuming the White House did stick this tax-break package — and my requests for White House comment, confirmation, or denial have met with silence – it clashes with Obama rhetoric on all sorts of fronts, including, as today’s excellent Wall Street Journal editorial points out, his calls for the wealthy paying their fair share and his professed desire “that the wealthiest corporations and individuals can’t take advantage of loopholes and deductions that aren’t available to most Americans.”

But beyond that, it undermines Obama’s professed desire to close the deficit.

Think about this: just the business and energy tax extenders reduce federal revenue by $67.7 billion in 2013. The tax hikes on the rich Obama won — higher rates on those over $400,000 and reduced deductions on those over $250,000 — raise $620 billion over a decade. As far as I know, we can safely guess that this would be less than $62 billion in 2013.

Obama’s corporate tax breaks look bigger than his tax hikes on the rich


Mockery, truculence, and minimalist living are best, then enjoy the decline. We also need a Revolving Door Tax (RDT).

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