An Unwelcome Stimulus Sequel

As Paul Harvey might say, "now we know the rest of the story." In an address to Congress, President Obama touted his jobs plan as a cure-all for the nation's economic woes and exhorted legislators to pass his bill without delay -- and without actually having seen the bill yet. But details on how to pay for the plan were conspicuously absent.

A number of responsible options were available to cover the cost of the $447 billion plan. Tax reform to lower rates while eliminating loopholes could provide both needed tax relief and increased revenue. Entitlement reforms could produce savings from Medicare and Medicaid while strengthening these vital programs to ensure their long-term sustainability. Free trade agreements with South Korea, Colombia and Panama could create 250,000 jobs in the next 18 months and boost revenue. Congress is eager to pass these long-pending agreements to create new markets for American-made products if only the Obama administration would actually send them to Capitol Hill for legislative action.

Which of these strategies would be included when the White House officially unveiled legislative language for its "American Jobs Act"? As it turns out, none of the above. No one should have been surprised to learn that the president intends to rely on tax increases to pay for his plan, but even members of his own party were displeased. Democratic Virginia Senator Jim Webb characterized the tax hikes as "terrible," adding, "We shouldn’t increase taxes on ordinary income." Sen. Tom Carper (D-Del.) echoed Republicans in calling for reducing the deficit though entitlement and tax reforms, arguing, "That’s better than everything else the president is talking about — combined.” Sen. Mary Landrieu of Louisiana declared that Obama's call to eliminate tax deductions for the oil and gas industries "is not going to fly."

The energy sector remains one of the administration's favorite punching bags. President Obama views oil and gas profits as ripe for government confiscation, but in reality, those profits are reinvested in domestic exploration and production that employ thousands of Oklahomans and workers throughout the nation. Increasing taxes on the energy industry could lower production, resulting in increased fuel prices and lost jobs at a time when we can little afford either of these developments. Such misguided policies are found throughout the president's plan, displaying a continued misunderstanding of the real barriers to job creation.

Now that taxpayers have viewed the fine print on the president's jobs plan, it appears to be nothing more than a second stimulus, paid for by tax increases.