I was going to live blog the Obama press conference. But as it started, I changed course because there is a bigger issue here which became obvious with Obama’s lecturing opening statement.
With each passing day, each television appearance, each mass e-mail, each door-to-door solicitation, and each news conference, it becomes more and more clear that this President has a thirst for power that will not be quenched.
The budget proposals are about expanding government power. The regulatory proposals are about expanding government power. The tax proposals are about expanding government power. There is no problem for which the solution is anything other than expanding government power.
Even those aspects of Obama’s policies which are not overtly government power grabs are government power grabs. The limitations on charitable deductions, which was the subject of a question at the press conference, typifies the shift to government running the economy.
While couched in language of equality, what the administration is saying is that upper income tax payers will pay taxes at a higher rate than they can deduct charitable donations. If your last dollar of income is taxed at 36%, traditionally you could deduct that dollar completely if you donated it to charity. No more. No matter how high the highest marginal rate goes, there will be a 28% limit on deductions. This is a hidden tax increase, which Obama admitted was his goal.
But there will be less incentive to make charitable donations, which charitable groups recognize will be devastating to their fundraising. With the drop in charitable services, government will step in to provide those services, thereby folding the charitable sector into the government. Again, a subversive power grab couched in the language of “fairness.”
That’s all you need to know about the press conference. The questions and answers are just details, which we will have time to analyze.