Taxes Or Growth?

IBD Editorials ^ | June 30, 2009

[Kaslin]

Taxes: The White House now refuses to rule out raising taxes on the middle class. Meanwhile, a top finance official in the previous Democratic White House suggests a tax hike is all but inevitable. Are we being set up?

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It sure looks that way. And if it happens, you can mark it down: The economy will slow to a crawl and may even relapse into a deep recession. This is a complete reversal of what was promised.

"In an economy like this," President Obama said at last summer's Democratic National Convention, "the last thing we should do is raise taxes on the middle class." That, he said, included 95% of all families. He promised flat out that he wouldn't raise taxes on families with income of less than $250,000.

How times have changed. On Monday, White House spokesman Robert Gibbs, asked point-blank several times if the president's vow was still good, would say only that "we are going to let the process work its way through."

"Process"? Middle class, watch out.

Actually, the last thing we should do is raise taxes on any class — lower, middle or upper. Tax hikes in a recession are plain crazy. They will inevitably crimp economic activity, slow retail sales, kill jobs and leave the government starved of revenues.

A major study in 2007 looking at recent U.S. economic history found that when the government raises taxes by 1%, U.S. GDP falls by roughly 2% to 3%. As we've noted before, the only surprising thing about this study is its author: Christina Romer, President Obama's top economic adviser.

[Kaslin]

Ping

[Kaslin]

Please freep mail me if you want to be on my IBD Editorials ping list

[taxtruth]

You get what you vote for.A communist in the whitehouse run by the sleazy world bankers.

[Kaslin]

Exactly. Unfortunately, the whole country has to pay the price

[Plumres]

In an economy like this,” President Obama said at last summer's Democratic National Convention, “the last thing we should do is raise taxes on the middle class.” That, he said, included 95% of all families. He promised flat out that he wouldn't raise taxes on families with income of less than $250,000.
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Obama told the truth once during the campaign. He told it to Joe the Plumber. He would spread the wealth.

[Cheap_Hessian]

This whole situation will be an unavoidable train wreck because the government on all levels can’t stop this insane spending. Thus, it will have to result in higher taxes, more debt, and greater expansion of the money supply which will hurt all of middle America.

[Kaslin]

He promised flat out that he wouldn't raise taxes on families with income of less than $250,000.

anyone that believes the promises of a liberal is a fool

[Right Wing Assault]

Has anyone made up a graphic with obi saying, “Read my lips. No new taxes!”

Or something of that nature. If it killed Bush, let’s hope it can do the same for obi-one.