View Full Version : Obama's tax hike delayed........

11-24-2008, 07:54 PM
This was my biggest gripe about Obama. He promised to tax the rich, give it to the poor, and somehow create more jobs and prosperity through some middle class "trickle up" tax redistribution theory. This appealed to the majority of people for obvious reasons, but now that he has been elected he has changed his position.....

Obama's tax hike for the rich may be delayed

President-elect Barack Obama gestures as he answers questions during his news AP – President-elect Barack Obama gestures as he answers questions during his news conference introducing …

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If repealed early, Obama's tax increase on the rich would have generated significant revenue, but not enough to compensate for the cost of his tax cuts.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.


11-24-2008, 10:15 PM

11-24-2008, 10:48 PM

:toofunny::toofunny::toofunny: I really laughed out loud about this, almost woke up my wife and got relegated to the couch. Thanks alot Mach.

11-25-2008, 08:02 AM
So are all of the Obama supporters going to be up-in-arms that he's not taxing the evil, greedy, unpatriotic, power hungry, rich?

11-25-2008, 08:09 AM
Obama just realized the "greedy rich" don't have any money either. He's got a line around the block already of every major business in the US standing in line waiting for a "Bailout"

In a related story GM just dropped Tiger Woods as a sponsor. I guess they can't afford him anymore since the feds aren't going to bail out the auto industry. (Just curious, but who footed the bill for the 127 car commercials I saw on TV this past weekend??)

I sure hope Tiger is going to be OK

11-25-2008, 08:27 AM
Campaigning is poetry. Governing is prose.

Get used to this...the reality is just now sinking in. Ultimately, he'll either raise taxes or the deficit will triple...

11-25-2008, 05:11 PM
Campaigning is poetry. Governing is prose.

Get used to this...the reality is just now sinking in. Ultimately, he'll either raise taxes or the deficit will triple...

What I find fascinating, is he basically has just agreed with president Bush concerning his handling of the economy and taxes. Raise taxes, hurt the economy, lower taxes, help the economy.

He is keeping taxes the same right now, which means he agrees that Bush did the right thing to help the economy in 2001-2.

11-26-2008, 08:30 AM
We are startingto see the pictures form. Looks like we are going to ignore the deficit and "spend our way out of this"...Bailout is looking as if it may be as much as 7 TRILLION dollars.


Obama to put deficit concerns on back burner
Fixing ailing economy will be top priority, president-elect says
By Beth Fouhy and David Espo
Associated Press

Published on Wednesday, Nov 26, 2008
CHICAGO: The economy growing weaker, President-elect Barack Obama said Tuesday that recovery efforts will trump deficit concerns when he takes office in January. Yet he pledged a ''page-by-page, line-by-line'' budget review to root out unneeded spending.
The president-elect set no goals for reducing the federal deficit now in record territory and headed ever higher an obvious contrast to Monday's announcement that he hopes to create a recession-busting 2.5 million jobs by 2010.
He spoke as he appointed Peter Orszag, currently head of the Congressional Budget Office, to be his own budget director.
Obama's comments came at his second news conference in as many days, an unusual pre-inaugural burst of activity that he said reflected ''the extraordinary circumstances'' he will inherit on Jan. 20.
With his Electoral College landslide victory, Obama said he possesses a ''mandate to move the country in a new direction, and not continue the same old practices that have gotten us into the fix we're in.''
At the same time, the Democratic president-elect pledged to consult with Republicans and approach his administration with humility ''and a recognition that wisdom is not the monopoly of any one party.''
Obama's promise to be careful with a federal buck was placed in a larger context.
''As soon as the recovery is well under way, we need to set up a long-term plan to reduce the structural deficit and make sure we are not leaving a mountain of debt for the next generation,'' he said.
The picture took on troubling new dimensions a few hours before he spoke when the Commerce Department reported economic activity declined at a rate of 0.5 percent in the three months ending in September.
Further underscoring weakness, Americans' disposable income fell at an annual rate of 9.2 percent in the same period, the largest drop in records that date to 1947.
The federal budget deficit was a record $455 billion for the fiscal year that ended on Sept. 30, and is certain to be higher this year possibly reaching $1 trillion as the costs of a financial bailout and an economic stimulus are piled on top of smaller-than-expected tax receipts.
Against that backdrop, Obama said, ''Budget reform is not an option. It is an imperative. We cannot sustain a system that bleeds billions of taxpayer dollars on programs that have outlived their usefulness, or exist solely because of the power of a politician, lobbyist or interest group.''
The president-elect's office also announced he intends to meet next Tuesday in Philadelphia with the nation's governors. As the economy sours, many states are being hard hit, and inevitably will turn to Washington for help meeting health-care costs for the poor as well as for other needs.
Obama's pledge to work with Republicans reflected his campaign rhetoric. His chief of staff, Rahm Emanuel, met last week with leading GOP lawmakers, and Obama has pledged to have at least one member of the opposition party in his Cabinet.
''I think what the American people want more than anything is just common-sense, smart government,'' he said.