White House Backs Away from Tax Statements

First it was Geithner. Now Volcker.

Volcker, who falls under the “not a spring chicken” heading of politicos, is the current chair of the newly formed Economic Recovery Advisory Board. Before that, the was the Chairman of the Federal Reserve under Presidents Jimmy Carter and Ronald Reagan. So, the man has been witness to a federal budget or two.

Despite his history, he clearly hasn’t figured out how politics work. Yes, we’re in a record deficit. And yes, we’re not collecting revenue like we used to. And yes, we’ve decided we can continue to spend like a drunken soldier anyway.

But raise taxes to fix all that? Pish. Who says that out loud?

Volcker did – on yesterday in New York (and Geither before that – though he back tracked very quickly on his statements).

And now, the Obama administration is treating him like the weird girl on the playground – people might really like and respect her down deep but nobody is going to actually pretend like they know her. It would be social suicide.

So, despite the fact that Mr. Volcker is an influential advisor to the President, the White House has issued the following statement:

Mr. Volcker was speaking for himself and not the administration. The president has not proposed this idea nor is it under consideration.

Oh snap.

In other words, Volcker, play nice, or we won’t let you be on our team.

Kelly Phillips Erb

Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.

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