When Barack Obama was running for president, his position on taxes was:
Middle class families will see their taxes cut – and no family making less than $250,000 will see their taxes increase. The typical middle class family will receive well over $1,000 in tax relief under the Obama plan, and will pay tax rates that are 20% lower than they faced under President Reagan. According to the Tax Policy Center, the Obama plan provides three times as much tax relief for middle class families as the McCain plan.
But that was before American Voter’s noticed the fact that he was spending our great grandchildren’s money with the porkulus, omnibus and his promised Cap and Trade, and Obamacare bills.
The American people turned out to bed smarter than the President thought, because most polls reflect an growing public disenchantment with the size of the federal deficit. This concern is causing the President to float a new solution, taxing the middle class.
Today on ABC’s This Week With Democratic Party adviser, George Stephanopoulos,
Treasury Secretary Timothy Geithner took a break from trying to sell his NY House, to try to sell the president’s programs.
During the interview he would not rule out new taxes to revive the economy, that’s because we all know what is coming:
Geithner: New taxes may be needed
By: Politico Staff
August 2, 2009 10:01 AM EST
Treasury Secretary Timothy Geithner said in an interview aired Sunday that the administration will do “what’s necessary” to revive the economy, and didn’t rule out new taxes as a means to do so.
“We’re going to have to look at – we’re going to have to do what’s necessary,” Geithner told ABC’s George Stephanopoulos, host of “This Week.”
“Remember the critical thing is people understand that when we have recovery established, led by the private sector, then we have to bring these deficits down very dramatically. We have to bring them down to a level where the amount we’re borrowing from the world is stable at a reasonable level. And that’s going to require some very hard choices. And we’re going to have to do that in a way that does not add unfairly to the burdens that the average American already faces.”
Pressed on whether he was ruling out new revenues, Geithner said: “[W]e’re not at the point yet where we’re going to make a judgment about what it’s going to take. … I think what the country needs to do is understand we’re going to have to do what it takes, we’re going to do what’s necessary.”
Here’s the full exchange:
STEPHANOPOULOS: I know you believe that passing health care is central for getting the deficit under control. But independent analysts say even with that you are going to need to find new government revenues. The former deputy Treasury Secretary Roger Altman said it is no longer a matter of whether tax revenues should increase but how. Is he right?
GEITHNER: George it is absolutely right and very important for everyone to understand we will not get this economy back on track, recovery will not be strong enough to sustain 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. Remember we inherited a 1 point three trillion dollar deficit. The cumulative consequences of the policies this country pursued over the last 8 years left us with 6 million dollars of more debt than we would have had by making a bunch of commitments to cut taxes and add to spending without paying for those. We are not going to be able to afford to do that. And it is very important that people understand that. Our first priority now though is to get this economy back on track, make sure this financial system is repaired. Without that, we’re not going to get our deficits under control and the necessary path to fiscal responsibility, the necessary path to getting this country living within our means again is not just health care reform, to bring down those costs, but we’re going to a range of other things and that’s going to be a very difficult challenge for this country. We can do this, it just requires the will to act.
STEPHANOPOULOS: Including new revenues?
GEITHNER: Well, we’re going to have to look at – we’re going to have to do what’s necessary. Remember the critical thing is people understand that when we have recovery established, led by the private sector, then we have to bring these deficits down very dramatically. We have to bring them down to a level where the amount we’re borrowing from the world is stable at a reasonable level. And that’s going to require some very hard choices. And we’re going to have to do that in a way that does not add unfairly to the burdens that the average American already faces.
STEPHANOPOULOS: But that’s the dilemma, isn’t it?
GEITHNER: That is the dilemma.
STEPHANOPOULOS: Because when you look at health care reform again – I know you believe it’s going to bend the cost curve over time. But the Congressional Budget office says, at best, the health care reform plans out there are going to be deficit-neutral over the next ten years. So to bring the deficits down, there is not enough money in the discretionary budget, we all know that. That means more revenues. The President has said that taxes won’t go up for any Americans earning under $250,000, but it doesn’t appear that he’s going to be able to keep that promise if you’re going to bring the deficits down.
GEITHNER: George, we can’t make these judgments yet about what exactly it’s going to take and we’re going to get there. But the very important thing, and no one is going to care about this more than the President of the United States, is for people to understand that we do not have a choice as a country, that if we want an economy that is going to grow in the future, people have to understand that we have to bring those deficits down. And it’s going to difficult – hard for us to do and the path to that is through health care reform. But that’s necessary but not sufficient. We [are] going to do some other things too.
STEPHANOPOULOS: So revenues are on the table, as well?
GEITHNER: Again, we’re not at the point yet where we’re going to make a judgment about what it’s going to take. But the important thing…
STEPHANOPOULOS: But you’re not ruling it out, you can’t rule it out.
GEITHNER: I think what the country needs to do is understand we’re going to have to do what it takes, we’re going to do what’s necessary.