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(Washington, D.C.: US Government Printing Office. 2010). pp. 146-179, Table S-B.
     
     
     
     
     
     
    As Brian Riedl observes, Obama might plausibly argue his $3 trillion in new taxes were necessary to balance the budget. But even if you assume no economic slowdown as a result of these taxes, his numbers don’t add up because he is planning on at least $1.6 trillion in new spending for healthcare, cap and trade, another stimulus bill, and additional education entitlements. Riedl concludes, “Simply put, surging spending is driving the budget deficits.” 30

    SMOTHERING SMALL BUSINESSES
    The “soak the rich” strategy, though appealing to Obama’s fellow class warriors, has a proven track record of failure because it depresses the number of high-income producers—these are people, often small business owners, who benefit the economy by creating jobs. Tax economist Curtis Dubay of the Heritage Foundation testified before the House Committee on Small Business, warning that many small businesses are now struggling to survive in this strained economy. Punitive new taxes, he argued, will impede any recovery, while reducing taxes, lifting regulations, and reducing government spending would re-energize small businesses and benefit the overall economy.
    But Obama plans on doing the opposite by raising the two top income tax rates. Dubay says it is a myth that only a small percentage of small businesses are affected by such a move. The “number of businesses that pay top rates,” he said, “is economically meaningless because so many small businesses represent the part-time efforts of their owners.” While 8 percent of small businesses pay the highest two tax rates, those businesses earn 72 percent of all small business income and pay 82 percent of all income taxes paid by small businesses. And those small businesses “employ most workers hired by small businesses.”
    Furthermore, “It is these businesses that the economy needs to create new jobs and ramp up economic growth after the severe recession. Higher taxes would drain the businesses of cash flow, the lifeblood of any business, and would diminish the incentives to grow and add other workers. Raising rates on these successful businesses would damage the economy at any time, but doing so now when the unemployment rate is starkly elevated and the recovery just underway is stunningly foolish.” Dubay also says the resurrection of the death tax will be another major drag on small businesses, as it “will destroy jobs, and lower wages while raising little revenue.” 31

    OBAMA’S FORECLOSURE PREVENTION PLAN
    The day after Obama signed the stimulus bill, the indefatigable spender announced his $75 billion plan ostensibly to prevent nationwide mortgage foreclosures, a situation he described as a “crisis unlike we’ve ever known.” As with ObamaCare, he billed it as an effort to bring the economy out of recession, but it was actually—like ObamaCare—another enormous wealth redistribution scheme. Declaring another urgent crisis, he proclaimed, “If we act boldly and swiftly to arrest this downward spiral, then every American will benefit.” Promises, promises.
    The plan was to draw $50 billion from existing bailout money and $25 billion from government-backed entities such as Fannie Mae and Freddie Mac. It directed Fannie and Freddie to automatically approve refinancing at current rates, which was expected to give 4 to 5 million people an immediate reduction in their mortgage payments, according to an administration official. At no time did anyone in the administration explain on what law or constitutional provision they based their authority for such a sweeping move. Nor did they explain how they could force contracting parties to alter the terms of their existing contracts. They just issued the edict. Period. Obama promised the plan would “give millions of families resigned to financial ruin a chance to rebuild.” He said it would reward those who played