Obama Says No To Middle Class Tax Increase

It was just a matter of time before Obama made a statement rebutting the suggestion from Geithner that a tax increase on the middle class was imminent. Apparently, a matter of time means less than a day.

Today, President Obama’s press secretary Robert Gibbs was quick to clarify that statements made over the weekend by Geithner did not reflect the president’s plans. Gibbs said this afternoon:

The president was clear during the campaign about his commitment on not raising taxes on middle-class families. I don’t think any economist would believe that, in the environment that we’re in, that raising taxes on middle-class families would make any sense.

Agreed.

When asked about comments made by Geither, Gibbs said, “They allowed themselves to get into a little hypothetical back-and-forth.” By using “they”, Gibbs was also referring to comments made by Larry Summers, director of the National Economic Council, who said on Sunday that he couldn’t guarantee that the middle class would escape a tax hike.

Gibbs was suggesting what many of us thought: that Geithner and Summers (who are not elected officials and do not make law) were essentially admitting that there’s no plan.

Am I allowed to say I told you so? According to my brothers, I’m pretty good at it…

Comments

  1. Scott Lovingood

    So has Obama talked to any good economists on what his tax increases, increased social programs, and tremendous increase in national debt is going to do to the middle class?

    It will be interesting to see how things evolve with his proposals or how to pay for them.

  2. Angela

    So except for the tobacco tax, the cap & trade taxes and the soda tax, there won’t be any taxes on the middle class. Heh.

    I suspect the national debt will be paid down with inflation – only a problem for the pesky savers and the folks retired on fixed incomes, right?

  3. Scott Lovingood

    Oh and don’t forget the the health benefits tax that small business will have to pay and then pass along to their customers..

    When inflation comes, it will be huge but will probably be a couple of years before it truly hits. Higher interest rates will cost all of us including those with debt, looking for loans, small business looking to expand.

    I am always amazed that a politician has the gall to say no new taxes. If people only knew how many people qualify for EITC and pay ZERO income tax and usually the equivalent of no SS tax as well.

    And of course we have the New Homeowners credit and Cash for Clunkers so we can help people to buy homes and cars with no discussion on helping those who have bought a home, paid their mortgage on time, and been a respectable tax paying citizen.

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