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Democratic Catch-22: Executive Salary Caps Unworkable Because Of $10 Billion Tax Revenue Loss

Loss

So much for Obama's populist masterstroke:

Those much-promoted, populist-pleasing salary caps for corporate executives who take Troubled Asset Relief Program money may be scrapped for the simple reason that they'll cost the government money. A report by the Congressional Budget Office estimated that pay caps would deprive the Treasury of $10.8 billion in lost tax revenue over the next 10 years. It's just too much for some Democrats to swallow.

They're going to need that revenue if they intend to continue deficit spending well after the recession ends. Which they do. This is what happens when you start throwing around literally unimaginable amounts of taxpayer money:

It's difficult to visualize a million dollars, much less a million million dollars. But that's the true threshold cracked by the "$825" billion "stimulus" bill, when you include $347 billion in estimated interest costs associated with the incremental borrowing required. So how big is the resulting $1.2 trillion spending package? Big enough to dwarf any government program in history, even after adjusting for inflation. It's bigger than the New Deal and the Iraq War combined. The interest alone will be costlier than the Louisiana Purchase or going to the moon. The $18 billion in bonuses paid legally by private Wall Street firms in 2008 - decried by the President as "shameful" - is vanishingly small in comparison (smaller even than the bill's incremental food stamps expenditures).

On the other hand, they don't really have a choice. The cost of failure is, well, yeah:

Like another breathtakingly stupid Democratic leader, Pelosi's very lucky that the media is deep in the tank for her.

Ditto, by the by, for Obama himself:

Obama makes a number of erroneous statements in both Thursday's editorial and today's YouTube address.

1.) The worst economy since the Great Depression? Kevin Williamson corrected Obama on a number of his facts at National Review after Obama made these same assertions on Thursday including his Great Depression line...

2.) "Tired old theories" caused the National Debt to double in the last 8 years? Really? Those tired old theories were working pretty well for most of the last 8 years.

3.) Those "tired old theories of taxcuts" saw an average unemployment rate of 5.26% during the Bush years from 2001 through 2008 despite the recession he inherited, the 9-11 attacks, war and the stock market collapse in 2008.

And so on.

References:
* On second thought, keep the money [Democracy In America]
* Obama: I Can't Believe Failed Wall Street Execs Are Using The Bailout Money We Rewarded Them With To Reward Themselves [MR]
* Obamanomics: "Stimulus" Money to Be Spent Mostly Well After the Recession; Lefty Robert Reich Argues Against Spending Infrastructure "Stimulus" on White Male Contractors [Ace]
* Stimulus, Illustrated [Suitably Flip]
* Pelosi: 500 million jobs lost every month [Hot Air]
* Breathtakingly Stupid VP Candidate Very Lucky The Media's In The Tank For Obama [MR]
* Will Media Report Pelosi's Claim 500 Million Lose Jobs Each Month? [News Busters]
* Will the Mainstream Media Ever Correct Obama's Absurd Economic Statements? [Gateway Pundit]

Previously:
* WSJ: Enjoy Christmas While You Still Can
* Of Course: Obama Energy Czar Carol Browner Sits On A Socialist International Commission
* Global Economy Not Feeling Particularly Hopey, Changey

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  • Omri Ceren is a PhD candidate studying Rhetoric at the University of Southern California's Annenberg School for Communication. He lives in downtown Los Angeles.

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