Originally, many wealthy business men were disgruntled about how Obama wanted to raise high class income taxes while, lowering middle classes. The way Obama explained his plan during the campaign seemed like a big blow to rich people, because they would take most of the taxes. To make the seeming pain worse, Obama said that he would alleviate the middle and lower classes taxes. With a description like that, I'm sure upper class members were afraid their taxes would go up many percentage points. But it seems, Obama had another plan.
Many media men are enraged that Obama won't delve on his plan on budget cuts, but there are going to be some. Some people are afraid on what Obama plans to cut, but it seems like social security is definitely off the table. One big area that Obama is looking at is healthcare. (Ironic isn't it?)
Finally, Obama had a meeting with 14 big executives from companies like Yahoo and Goldman Sachs. Most if not all of the executives came out of the meeting satisfied. One even gave a quote namelessly, "He seems flexible, but he said taxes should go up on the top 2%." It looks like big business and the President will find a way to settle this. If everything goes smoothly, maybe this economic crisis is something that the American people can get through. FDR got us through the Great Depression, maybe Obama will get us through the "Great Recession."
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On Colbert yesterday, Reihan Salam (author of Grand New Party, a book about the future of Republicans) talked about the complicated tax thing and how raising taxes on the top may not be the only solution. He cited Reagan, naturally, and how the ever elusive tax code reform (cut loopholes and deductions, sounds familiar) could make a more efficient, more fair tax system that doesn't necessarily need to take all it's revenue from the superwealthy.
This isn't saying taxes on the higher incomes don't need to be raised, but as Obama demonstrated in his meeting with all these corporations, it suggests that they don't need to be raised to levels that necessarily appall big business. Maybe some solution is possible, before or after the cliff.
Here is an interesting video from an economist fro,m Cal, Robert Reich, Here .
The rich definitely need to be taxed more like Obama has stated. They are paying least amount they have than in the past 50 years and unlike what we are constantly hearing,lowering taxes on the rich don't necessarily create all the jobs we are being promised.
Cutting programs like PBS and other small government programs aren't going to help solve the defecit. To actually solve the problem we are going to have to dive into the big spendings, like medicare/medicaid, and the military.
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