Economy Alarm: It Begins: Obama Administration Backs Away from Tax Pledge

It Begins: Obama Administration Backs Away from Tax Pledge
White House Suddenly Realizes it Has to Pay for Runaway Spending Agenda

Obama Made Middle-Class Tax Cut a Centerpiece of his Campaign:

“Middle class families will see their taxes cut – and no family making less than $250,000 will see their taxes increase.” (Source: Barackobama.com; accessed 8/3/09)
 
Credibility Crash: White House Puts Middle-Class Tax Hike on the Table:

President Barack Obama’s treasury secretary said Sunday he cannot rule out higher taxes to help tame an exploding budget deficit, and his chief economic adviser would not dismiss raising them on middle-class Americans as part of a health care overhaul.
—
Treasury Secretary Timothy Geithner and National Economic Council Director Larry Summers both sidestepped questions on Obama’s intentions about taxes. Geithner said the White House was not ready to rule out a tax hike to lower the federal deficit; Summers said Obama’s proposed health care overhaul needs funding from somewhere.

“There is a lot that can happen over time,” Summers said, adding that the administration believes “it is never a good idea to absolutely rule things out, no matter what.”

During his presidential campaign, Obama repeatedly vowed “you will not see any of your taxes increase one single dime.” But the simple reality remains that his ambitious overhaul of how Americans receive health care — promised without increasing the federal deficit — must be paid for.

“If we want an economy that’s going to grow in the future, people have to understand we have to bring those deficits down. And it’s going to be difficult, hard for us to do. And the path to that is through health care reform,” Geithner said. “We’re not at the point yet where we’re going to make a judgment about what it’s going to take.” (Phillip Elliott, “2 Obama Officials: No Guarantee Taxes Won’t Go Up,” Associated Press, 8/2/09)

To Read the full article, click here: http://www.washingtonpost.com/wp-dyn/content/article/2009/08/02/AR2009080202200.html

###