Beware dangerous cliff
There are a lot of numbers and assertions in these statements by the president. We will primarily focus on the first statement, since it raises interesting questions of presidential responsibility.
But we do want to note the tax statement, since we seem to have a rare moment when Obama and GOP rival Mitt Romney appear to agree. Here’s what Romney said on Tuesday: “I admit this, he has one thing he did not do in his first four years, he’s said he’s going to do in his next four years, which is to raise taxes.”
Generally, Republicans have argued (and the Supreme Court agreed) that Obama’s health-insurance mandate is a tax. The health-care law also included a number of taxes aimed mostly at the wealthy. But broadly speaking, Obama has reduced taxes for most Americans, so much so that the Congressional Budget Office says that effective tax rates are at their lowest point in three decades.
In October 2008, the Emergency Economic Stabilization Act of 2008 (Division A of Public Law 110-343) established the Troubled Asset Relief Program (TARP) to enable the Department of the Treasury to promote stability in financial markets through the purchase and guarantee of “troubled assets.” Section 202 of that legislation requires the Office of Management and Budget (OMB) to submit semiannual reports on the costs of the Treasury’s purchases and guarantees of troubled assets. The law also requires the Congressional Budget Office (CBO) to prepare an assessment of each OMB report within 45 days of its issuance.