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INSKEEP: You mentioned having to borrow money to do this. Let me ask you about something that both Democrats and Republicans have raised. If you're going to allow these tax cuts to continue, if you're going to approve the other tax cuts, why not make corresponding spending cuts to finance it so they do not add so massively to the deficit?
OBAMA: Well, we're going to have a long discussion next year about spending. I put together a fiscal commission — over the resistance, I should note, of a number of Republicans who originally had supported it.
I think that Bowles-Simpson did a good job of sparking a conversation about how we need to move forward to deal with our medium- and long-term deficits. There have been other commissions that have been put forward over the last several weeks.
And I'm going to have to put a budget up that shows how I think we make some — a serious dent in our debt and our deficit. I think every economist — and by the way, the commissions who looked at this as well, realize that because we've got a recovery that is still not as strong as we'd like it to be. [Interview interrupted by coughing.]
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INSKEEP: What do you plan to do to the tax code in the next couple of years?
OBAMA: Well, I think we're going to have to have a conversation over the next year. And if you think about the last time we reformed our tax system back in 1986 — it didn't happen right away, by the way. It required a lot of conversations among a lot of different parties. But people of good will came together and realized that if we eliminate what happens to the tax code every decade or so — loopholes get built in, special interest provisions get built in — the nominal rates end up high, but the actual tax rates that well-connected folks or people who have good accountants pay end up being a lot lower. Ordinary people end up getting squeezed.
So typically, the idea is simplifying the system, hopefully lowering rates, broadening the base — that's something that I think most economists think would help us propel economic growth. But it's a very complicated conversation.
So what I believe is, is that we've got to start that conversation next year. I think we can get some broad bipartisan agreement that it needs to be done. But it's going to require a lot of hard work to actually make it happen.
Obama reaches out to liberal groups to shore up Democratic base after tax deal
By Peter Wallsten
Washington Post Staff Writer
Sunday, December 19, 2010; 9:59 PM
In the wake of President Obama's tax-cut deal with Republicans, the White House is moving quickly to mend its strained relationship with the Democratic base, reassuring liberal groups, black leaders and labor union officials who opposed the tax compromise that Obama has not abandoned them.
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http://www.washingtonpost.com/wp-dyn/co ... 03537.html
Yarnell Perkins wrote:Thank you, Neon.
And one more thing: McKinney/Bageant 2012!
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