WASHINGTON – An economic crisis, rising joblessness and a credit squeeze can make a president-elect refine his words. Today's word is "repeal." During his presidential campaign, Barack Obama promised to repeal President George W. Bush's tax cuts for the wealthy ahead of their scheduled expiration in 2011.
It was part of how Obama would pay for an overall net tax cut aimed at low- and middle-income taxpayers, and an effort to bring what he called "fairness" to the tax system.
No one is talking tax hikes now.
Over the weekend, Obama said he has charged his new economic team with devising a plan that would create or preserve 2.5 million jobs over two years. He said the plan would include broad spending plans as well as the middle- and low-income tax cuts he described during the campaign.
Aides later said the plan would not include any of the tax increases Obama, as a candidate, had said he would impose on taxpayers who make more than $250,000.
Asked Monday when those hikes might go into effect, Obama said, "Whether that's done through repeal, or whether that's done because the Bush tax cuts are not renewed, is something that my economic team will be providing me a recommendation on."
If repealed early, Obama's tax increase on the rich would have generated significant revenue, but not enough to compensate for the cost of his tax cuts. An analysis by the Tax Policy Center, based on January 2008 income projections, estimated that the increases would result in about $43 billion in revenue in 2009 and $45 billion in 2010. Those numbers would be smaller now, as the economy has lowered expected incomes.
Obama's economic advisers say he will not propose any tax increases in the economic plan he unveils in January. It is to be focused entirely on job creation and economic recovery.
I am glad that he is focused on job creation and economic recovery, but where is all the talk about taxing the rich now? I thought he already had an economic plan that was going to turn the Country around and part of that plan was taxing the rich and giving more money back to the middle class and poor? Kazoo will probably say this is classic liberal smoke and mirrors to dupe the poor into believing that democrats are about "taking care" of those who cannot take care of themselves just to get elected. As it looks right now, I would agree with that sentiment, but its not just democrats rather its just politics.
Government, let me take you in my arms, look deep into your eyes, and believe in your greatness in complete rejection of all empirical data.
