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Obama May Have To Break His Tax Pledge

From the Washington Post:

Tax Pledge Is a Target As Deficits, Debt Grow

Obama Advisers Will Not Rule Out Broad-Based Hike

By Lori Montgomery
Saturday, August 29, 2009

During last year’s campaign, President Obama vowed to enact a bold agenda without raising taxes for the middle class, a pledge budget experts viewed with skepticism. Since then, a severe recession, massive deficits and a national debt that is swelling toward a 50-year high have only made his promise harder to keep.

The Obama administration has insisted that the pledge will stand. But the president’s top economic advisers have refused to rule out broad-based tax increases to close the yawning gap between federal revenue and government spending and are warning of tough choices ahead.

Republicans are already on the attack, accusing Obama of plotting to break his no-tax vow, the same political transgression that cost Democrats control of Congress under former president Bill Clinton and may have cost president George H.W. Bush his job. Democrats say Obama is highly unlikely to break the pledge before next year’s congressional election and observe that it would be safer to wait until his second term if a tax increase becomes unavoidable.

Some lawmakers are focused instead on setting up an independent commission to solve the deficit problem. Senate Budget Committee chairman Kent Conrad (D-N.D.) plans to hold hearings on the topic when Congress returns to Washington this fall.

Obama, meanwhile, has vowed to pay for any new initiatives and to draft an overhaul of the health-care system that eventually would save the government money, driving deficits down. But effective health reforms would take decades to produce savings. In the meantime, White House budget director Peter R. Orszag acknowledged, "there are additional steps that will be necessary."

"The administration is very concerned about these [future] deficits, and getting those deficits under control is a top priority of the administration," Orszag told reporters this week as he rolled out a new economic forecast that added $2 trillion to deficit projections from 2010 to 2019.

Treasury Secretary Timothy F. Geithner and White House economic adviser Lawrence H. Summers have both delicately sidestepped the tax question on Sunday talk shows. Orszag has also refused to discuss what steps Obama might take to reduce the deficit in the budget blueprint he will present to Congress in February. But budget analysts say he has few real options.

"If you rule out inflating our way out of the problem and defaulting on the debt, there are two ways: Cut spending or raise taxes," said William G. Gale, an expert on fiscal policy at the Brookings Institution. With more than 80 percent of federal spending devoted to politically untouchable programs such as Social Security, Medicare and Medicaid, he said, "it’s going to be really hard to make significant headway on the spending side. So that means you’ve got to think about taxes." …

What a shock, huh?

We didn’t see this coming.

If only the deficit hadn’t shot up like that.

This article was posted by Steve Gilbert on Saturday, August 29th, 2009. Comments are currently closed.

13 Responses to “Obama May Have To Break His Tax Pledge”

  1. Colonel1961

    Does this mean I have to lower my earning potential again? Heck, if this keeps up, I’ll be living off of savings – it’s no longer safe to earn money under the BHO administration…

  2. proreason

    “”If you rule out inflating our way out of the problem and defaulting on the debt, there are two ways: Cut spending or raise taxes…..it’s going to be really hard to make significant headway on the spending side.”

    Here is my most confident prediction of all time:

    1. inflation will increase.
    2. spending will increase.
    3. taxes will be raised.

    I don’t think we will default on the debt.

    Unless the natives continue to be restless and The Moron needs a really REEEALY big crisis to be able to control them. But he would probably start a war before then.

    Several European countries look like juicy takeover targets. And after all, what have they done for us lately? And just look how they treat Muslims. That has to be stopped, doesn’t it?

  3. Paulajay

    And when the Messiah is forced to raise taxes on everyone that works for a living, it will be “GEORGE BUSH’S FAULT,” of course.

    • Liberals Demise

      I believe you are getting it!!
      “…..and so as the sunsets on our beloved country, a giddy Obama can be heard in the back ground singing ” I’m to sexy for my shirt” while balancing his checkbook!”

  4. Rusty Shackleford

    Maybe he could write another book and everyone would buy it and thus, a sudden windfall profit to ease our burden, just like he did with his own personal crappy money management.

    Yes, like we didn’t see this coming. He wants to play fast and loose? His goal from the beginning was to empty the coffers to those who got him elected and to redistribute the payola to those who do nothing. Then, the next step is to burden the doers nad earners with crippling taxes, to force them to stop spending and “buyin’ dem nice cars and stuff”.

    I want to hear every black man who has a steady job in a year’s time tell me how much he loves this prick. Especially when their wages look like an archery target.

    But there again, I don’t think many people understand that tax withholding. How can you miss it if it was never there in the first place?

    And Pro is right. spend, spend, spend…tax tax tax. If only Dr Suess were still here, he could put it in iambic form.

    “We live in the greatest nation in the world. Join me in changing it”

    • Colonel1961

      Rusty, you’ve hit some great points – especially the third paragraph. It will be interesting to see how far down the income strata ‘The Won’ will have to delve before too many folks start screaming. My guess is that he’ll have to break into five-figures to meet significant resistance. Said another way, if you make even low six-figures, you’re like the deer with the bulls-eye in the Far Side Cartoon – ‘Bummer of a birthmark, Hal’…

  5. Chuckk

    “Tax Pledge Is a Target As Deficits, Debt Grow”

    Makes it sound like the deficit grows by itself, like a weed. No one has control over it. It has a life of its own.

  6. canary

    And this, before health care. Blame game coming soon.

  7. DGA

    As I recall, George Bush the first was demonised for increasing taxes after stating “Read my lips, no new taxes” and that probably finished him off as far as getting reelected for a second term. Anyone want to bet that the main media don’t run that endgame on this useful idiot of a president this time around?

  8. MikeInOhio

    > Some lawmakers are focused instead on setting up an independent commission to solve the deficit problem.

    Most people thought it was the responsibility of those we have elected to Congress to solve these problems – particularly since these same lawmakers considered it to be their responsibility to create these problems in the first place.

    I don’t object to getting ‘independent’ input, but this sounds more like passing the buck than taking responsibility.

  9. proreason

    Austin Hill joins the chorus saying “What exactly is going on with this regime?”

    http://townhall.com/columnists.....ying_to_do

  10. jrmcdonald

    Perhaps if he used the ‘death tax’ on teddy kennedy, that would cover the National Debt… or help

  11. proreason

    Great American Thinker article on the Moron’s non-stop lying: “The Prince of Lies”

    http://www.americanthinker.com....._lies.html

    “…And President Obama is a most gifted liar. We’re not talking about a new Clintonian era of likeable misinformation. This is not, “I didn’t inhale.” President Clinton’s loveable way of twisting the truth pales in comparison to Obama’s brazen boldness in lying even when Obama knows he will be caught.

    President Obama is a special breed of liar, employing an array of varying techniques intended to marshal public emotion in his favor. For example, he uses his own grandmother to gain sympathy for a plan that will leave millions of grandmothers without care.

    Unlike his predecessors, when caught in the midst of a deception, Obama is not deterred. He lies to cover his lies. …

    At some point, citizens grow weary of hearing that their leaders are out for their ill, that political policies are nothing more than grand deceptions. Who wants to believe their President is a serial liar that seeks to impose full Socialism on the land of the free? Some truths are too big to contemplate, an observation that would lead one of the world’s most successful propagandists to write:

    “It would never come into their [the people's] heads to fabricate colossal untruths, and they would not believe that others could have the impudence to distort the truth so infamously. Even though the facts which prove this to be so may be brought clearly to their minds, they will still doubt and waver and will continue to think that there may be some other explanation.”

    Obama is counting on this principle….”

    The imbedded quote is from “Mein Kampf”


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