[andy58-in-nh]

You might also make note of the fact that Obama's "out-year" deficit reductions are based on a presumed increase in revenue due to the expiration of the Bush tax cuts. In other words, personal income tax, dividend tax, and capital gains rates are set to skyrocket beginning in 2011.

The know-it-alls in Washington are counting on vastly increased revenue as a result - even in the face of mountainous debt and a persistent slump in credit demand. To believe that, you'd have to presume that such higher taxes will not further suppress economic growth, and perhaps that Santa, the Easter Bunny and the Tooth Fairy will help take up the slack.

[P.O.E.]

There was a similar report earlier It was something about “cutting costs” by 20 billion (?) by eliminating the advanced earned income tax credit.

So it wasn’t about cutting spending, but raising taxes.

Typical

http://www.reuters.com/article/idUSTRE60T21S20100130