Middle class tax hike coming soon?
President Obama may have to raise taxes to pay for public health care and the growing deficit, an eventuality that administration officials touched lightly on Sunday as they promoted an economy emerging from recession.
With an expected deficit next year of $1.8 trillion, and spending still being planned for a $1 trillion, 10-year health care reform, officials say something will have to be done to prevent further erosion of the economy.
“We will not get this economy back on track, recovery will be not strong and sustained, unless we … can convince the American people that we’re going to have the will to bring these deficits down once recovery is firmly established,” Treasury Secretary Tim Geithner said on ABC’s “This Week.”
Asked point blank whether it was right to suggest it is a matter of when, not if, taxes will be raised, Geithner responded, “It is absolutely right.”
National Economic Council President Larry Summers said on CBS’ “Face the Nation” that jobs are a lagging indicator and once output increases, job growth will start to pick up.
“I think we have a ways to go. I want to emphasize the basic realities. Unemployment is still very high in this country,” Summers said.
He added that it’s not a good idea to rule out future taxes.
“There is a lot that can happen over time. … But what the president has been completely clear on is that he is not going to pursue any of his priorities — not health care, not energy, nothing — in ways that are primarily burdening middle-class families. That is something that is not going to happen,” Summers said.
Uh huh. And what did then-candidate Barack Obama say about raising taxes on the middle class?
During his presidential campaign, Obama repeatedly vowed “you will not see any of your taxes increase one single dime.” But the simple reality remains that his ambitious overhaul of how Americans receive health care — promised without increasing the federal deficit — must be paid for.
Jim Hoft has video of one of the times candidate Obama promised not to raise taxes on anyone making less than $250K. We knew then it was a lie, and it’s just one more thing critics of Obama have been right about since day one.
George HW Bush was defeated by Bill Clinton, in part, due to breaking his “no new taxes” campaign promise. Will both President O and his party face the same fate?
Stay tuned …