Yesterday I said there are two basic ways to cut a deficit: lower spending and raise taxes. Well, I underestimated the president, who has apparently found a third way. Mr. Obama wants to “reduce spending in the tax code.” The idea is to take away some of those pesky tax credits for beleaguered taxpayers. Okay, it’s really a tax hike.
The wording betrays Mr. Obama’s mindset: He views allowing people like me (not in any sense a millionaire or billionaire, mind you) to keep more of their money from the IRS as a form of government spending, as if the government, not the taxpayer, has first claim on that money.
I wonder if this means we can all kiss the homeowner’s deduction and child tax credit goodbye? That’s an approach that will force the Guthrie family to reduce its own spending.