It was a shocker today when the President came out and hinted that he basically wanted $1.6 trillion in new tax revenue....to run the country. I'm guessing....because Senate Democrats were so peppy and positive over last weekend's political talk shows that they were sure a compromise could be worked out....that they were fairly shocked today when the President made the odd comment over the massive new tax deal.
I have to be honest here....even when Representative Boehner talks about this tax credit deletions....he never mentions numbers. He's been careful to avoid this topic. My humble guess is that the tax credits that would be tossed out and affect mostly wealthy Americans (note, I didn't say rich because lots of people use these various 'loopholes' or tax credits)....it probably adds up to $400 billion. I suspect that Boehner doesn't want to admit the massive size of this loophole deal and get Tea Party folks upset.
The odds of $1.6 trillion in new taxes being generated? Zero.
My humble guess is that Congress will laugh over the talk for this weekend, and dump the trillion topic by Monday. If the Senate (mostly Harry Reid) wants to go in the President's direction....then the House will craft up some mini-bridge bill to get the government up to June of 2013, and let this whole sequestration topic brew back up again.
The President will be forced back into the corner of some massive government cut. It may happen in the spring of 2013, or the end of 2013....but there's no real solutions on the table at all.
And if you did take another extra trillion out of the US economy to run the government? That's a trillion less than what would be in company investments or stock ownership. You can imagine how the business community would react, and how job creation would be mostly a joke in twelve months.