» Why is this? The CBO’s report says that in regards to what’s behind all this, “Of the various initiatives that the President is proposing, tax provisions would have by far the largest budgetary impact.” In layman’s terms, tax cuts — especially those for the middle class — are the largest factor affecting deficits. While he’s pushing for tax increases on the wealthy and corporations, they won’t offset the effect of the tax cuts. You know what’s funny though? Even though the CBO’s report specifically says this, the Washington Times reported this story as if spending was the culprit.
» Why nobody noticed: Well, Obama’s method for doling out the tax cuts was a little weird. Most people expect tax cuts on the back end, in the form of giant refund checks. Obama, on the other hand, put the cuts (as part of his $787 billion stimulus plan) directly in paychecks, to be distributed slowly, week to week. In a way, it’s brilliant because nobody thinks about a couple extra bucks in their paycheck and will spend the money like nothing ever happened. But in another way, it means the effects of the stimulus went unnoticed by millions of people. Hmm. For point of comparison, most people are well-aware of Bush’s tax cuts.