Lloyd Blankfein a few hours ago:
“Broadening the personal income-tax base by closing loopholes will generate substantial additional revenue while minimizing increases in marginal rates that could stifle risk-taking and robust growth.”
Republican Senator Boehner talked the loopholes scam a week ago and I assumed “his side’s” initial negotiating position would be President Obama’s final one, but now the money has spoken and said the same as Boehner.
So, we can be certain — markets, are you listening? — here’s how it will go down:
In the end Obama will enthusiastically extol ‘closing loopholes’ — which will take the rich and their tax attorneys five minutes to figure out how to get around — and that will be what ‘our side’ gets. No change in tax rates on the 1%. On the other hand, the 1% Democrats and Republicans will get definite and painful cuts in Medicaid and Medicare, and a perhaps smaller cut in Social Security that won’t be called a cut (it’ll be called ‘a change in the way cost of living adjustments are calculated’), but that will amount to a 3% slash after ten years, 6% after twenty, and so on.
If Romney were President I don’t think he would be able to get away with this … but he was worser evil-wise, apparently.