The Orlando Business Journal has the article Obama weighs in on tax cuts, reducing deficit at Rollins College visit .
I’m not going to pay for a massive tax cut for folks who don’t need it by gutting the investments that have always kept us at the forefront and have always kept our middle class strong.”
I like this way of stating the consequences of giving tax cuts to people who do not need them and who won’t put them to work stimulating the economy. It wouldn’t hurt to emphasize my second point. Besides the issue of fairness, it just would not be good for the economy to keep taxes low on the top 2% so that they can invest the money in non-productive financial derivatives.
The bottom 98% will spend a larger fraction of their tax cut on consumption which will spur job growth to meet the demand of this increased consumption. To get an even larger fraction of the money into economic stimulus would require direct government spending. This better path to economic recovery has gone through such an onslaught of negative propaganda, that maybe the President thinks it would be too tough a sell in this election year.