Obama's war against investors, businesses

Lawrence Kudlow:

Let me be very clear on the economics of President Obama’s address to Congress and budget. He is declaring war on investors, entrepreneurs, small businesses, large corporations, and private-equity and venture-capital funds. That is the meaning of his anti-growth tax-hike proposals, which make absolutely no sense at all — either for this recession or from the standpoint of expanding our economy’s long-run potential to grow.

Raising the marginal tax rate on successful earners, capital, dividends, and all the private funds is a function of Obama’s left-wing social vision, and a repudiation of his economic-recovery statements. Ditto for his sweeping government-planning-and-spending program, which will wind up raising federal outlays as a share of GDP to at least 30 percent, if not more, over the next ten years.

This is nearly double the government-spending low-point reached during the late 1990s by the Gingrich Congress and the Clinton administration. While not quite as high as spending levels in Western Europe, we regrettably will be gaining on this statist-planning approach.

Study after study over the past several decades has shown how countries that spend more produce less, while nations that tax less produce more. Obama is doing it wrong on both counts.

And as far as middle-class tax cuts are concerned, Obama’s cap-and-trade program will be a huge tax increase on all blue-collar workers, including unionized workers. Industrial production is plunging, and new carbon taxes will prevent production from ever recovering. While the country wants more fuel and power, cap-and-trade will deliver less.

Obama’s tax hikes will generate fewer revenues and lower economic growth....

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It will be interesting to see if those harmed by the Obama's economic policies will be a generous as they were in contributing to his 2008 campaign. Their investment in Obama is something they should regret.

What we are seeing is the war Democrats have been wanting to make on the rest of America for decades. They are screwing up big time. Hopefully, voters will notice before the 2010 elections so they can put Republicans back in charge of Congress.