The Road to Hell

EU presidency: US economic plans 'a road to hell'

STRASBOURG, France (AP) -- The president of the European Union slammed President Barack Obama's plans to have the U.S. spend its way out of recession as "a road to hell," underscoring European differences with Washington ahead of a crucial summit next week on fixing the world economy.

With that said, the White House searches for new tax revenues.

The White House said it would launch a search for new tax revenues, as Congressional leaders moved to scale back proposed spending increases and tax cuts in President Barack Obama's ambitious budget.

The Obama administration plans to create a task force to consider elimination of corporate loopholes and subsidies, tougher enforcement against tax avoidance, and tax simplification, White House Budget Director Peter Orszag said late Tuesday.

Basically the administration wants to find new ways of taxing people and corporations. Another thing they want to do is reduce the level of tax breaks such as on charitable contributions which will negatively impact philanthropy. They also plan on increasing the powers of the IRS to more aggressively go after people and corporations.

Mean while the senate plans on scrapping the middle-class tax cut after 2010.

President Barack Obama says he's not ready to comment on a proposal from some Senate Democrats to scrap his middle-class tax cut after 2010. Obama says he hasn't yet seen what changes are coming out of the House and Senate.

But he delivered his bottom-line on the budget at a Tuesday evening news conference. Obama said the budget must move toward health care reform and include an energy policy that frees the U.S. from dependence on foreign oil. He also says he's looking for investment in education and a reduction in the deficit.

Obama’s spending plan, which will increase the deficit by over $9 trillion in the next 10 years, is simply unsustainable. Taxes will have to go up and not just on the rich but for everyone. This will be increases on taxes in virtually all categories from corporate taxes, income taxes, to regressive excise taxes—sales tax, gasoline, energy, etc. Nough said.