Economy Alarm: Democrats Answer to Tame the Deficit? Raise Your Taxes

Democrats Answer to Tame the Deficit? Raise Your Taxes

White House Official Says Middle Class Tax Increases Likely Needed to Bring Obama Deficit Under Control

President Obama Has Repeatedly Promised Middle-Class Families Would be Exempt from Tax-Hikes

“Obama repeatedly vowed during the 2008 presidential election campaign that he would not raise taxes on individuals making less than $200,000 and households earning less than $250,000 a year.” (Rich Miller, “Obama ‘Agnostic’ on Deficit Cuts, Won’t Prejudge Tax Increases,” Bloomberg, 2/11/2010)

“He went on to say that the initiatives would ‘focus on easing the burdens on middle-class families who are struggling in this economy, and providing the help they need to get ahead.’ Well, they would ease them a little bit, perhaps, but not much.’” (Michelle Singletary, “President Obama proposals offer modest help to the middle-class,” Washington Post, 1/28/2010)

Credibility Crash: White House Official Says Tax Increases on the Horizon

The United States should consider raising taxes to help bring deficits under control and may need to consider a European-style value-added tax, White House adviser Paul Volcker said on Tuesday.

Volcker, answering a question from the audience at a New York Historical Society event, said the value-added tax “was not as toxic an idea” as it has been in the past and also said a carbon or other energy-related tax may become necessary.

Though he acknowledged that both were still unpopular ideas, he said getting entitlement costs and the U.S. budget deficit under control may require such moves. “If at the end of the day we need to raise taxes, we should raise taxes,” he said. (Steven Johnson and Leah Schnurr, “Volcker: Taxes likely to rise eventually to tame deficit,” Reuters, 4/06/2010)

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