Obama wants $255 billion stimulus to offset his tax increases on the rich

No - this is not a joke. The president is absolutely serious. Acknowledging that his tax increase on the wealthy will slow economic activity, the president wants $255 billion in new spending. Reason has left the building. But President Obama's first offer to avoid going over the "fiscal cliff" holds out the hope of at least some stimulus. This would include extending the 2 percentage point Social Security payroll tax cut, boosting a tax incentive to businesses, establishing a $50 billion bank for long-term infrastructure projects, and extending unemployment benefits. The total bill: about $255 billion out of the federal government's pocket - an amount the GOP would likely say needs to be offset by spending cuts elsewhere. The argument in favor of such stimulus? The tax measures, at least, could minimize the drag on the economy from Mr. Obama's proposed tax increases on the wealthy. "The increases in the top two income tax brackets would put a drag on consumption, so I...(Read Full Post)