On the domestic front, President Obama has nowhere more clearly headed for the political center than he has in his recent action to allow off-shore drilling along our coastlines. The fact that he has displeased some on both ends of the political spectrum in taking this action — environmentalists think he went too far and the “drill, baby, drill” crowd thinks he didn’t go far enough — is a recent example of his “getting it right,” non-ideological approach to governance.
But this is not a recent phenomenon. The Recovery Act included tax cuts for individuals and small business. Health reform featured subsidies for individuals and small businesses, as well as a role for the States in implementing the new health care laws. Recent “jobs bills” also featured incentives targeted to small business, including tax cuts for hiring the unemployed.
Last year, the President called for a spending freeze on discretionary federal spending, and the Congress approved the pay-go rules that were key to bringing the budget into balance during the Clinton administration. With pay-go rules in place, spending increases passed by the Congress need to be offset by spending reductions or tax increases. Once the economy picks up, watch for the President to flex his fiscal responsibility muscles and begin to enforce pay-go rules aggressively.
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