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Is Obama planning a $3 trillion income tax increase? (repealing all Bush tax cuts)
Reuters Blogs ^ | James Pethokoukis

Posted on 11/17/2009 12:45:54 PM PST by reaganaut1

Did I just see a trail balloon launched? Over at a Wall Street Journal conference, Christina Romer, chairman of President Obama’s Council of Economic Advisers had this to say about deficit reduction:

But the chairman of the president’s Council of Economic Advisers admitted that health reform and a growing economy isn’t enough to bring down the deficit. She did mention one other place that revenue could come from: letting the Bush tax cuts expire.

Me: Since Obama already wants to get rid of the income and capital gains tax cuts for wealthier Americans that expire at the end of 2010, clearly what Romer is referring to is the rest of the 2001 and 2003 Bush tax cuts. Letting all the 2001 cuts — rate reductions, child tax credit marriage penalty relief — expire would raise tax revenues by $2.5 trillion through 2019. (These CBO numbers assume no negative economic feedback impact from higher taxes.) And letting the 2003 tax cuts on capital gains and dividends expire would be tantamount to a $350 billion tax increase through 2019. And none of this includes possible plans for a VAT that could raise $400 billion a year more to close the huge projected gap — maybe 7 percentage points — between spending as a percentage of GDP and revenues as a percentage of GDP.

(Excerpt) Read more at blogs.reuters.com ...


TOPICS: Business/Economy; Front Page News; News/Current Events
KEYWORDS: bloggersandpersonal; bushtaxcuts; christinaromer; pethokoukis; romer; taxes; taxincreases
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1 posted on 11/17/2009 12:45:56 PM PST by reaganaut1
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To: reaganaut1
UPDATE 1-China, US eye pact to help troubled banks -sources
2 posted on 11/17/2009 12:46:51 PM PST by bsf2009
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To: reaganaut1

Why is this question even being asked? We know that he will let them expire.


3 posted on 11/17/2009 12:47:17 PM PST by 17th Miss Regt
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To: reaganaut1

The Dems have never believed that the Bush tax cuts were legitimate and will allow them to expire in 2010 introducing the largest tax increase in US history.


4 posted on 11/17/2009 12:47:41 PM PST by kevinm13 (Tim Geithner is a tax cheat. Manmade "Global Warming" is a HOAX!)
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To: reaganaut1

When the 2003 tax cuts expire at the end of 2010 people making $50k/yr can kiss goodbye $2500 cash/yr. People making $100K/yr can kiss goodbye $4000 cash/yr.


5 posted on 11/17/2009 12:48:25 PM PST by avacado
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To: reaganaut1

6 posted on 11/17/2009 12:49:13 PM PST by Lucky9teen (Pray for Obama. Psalm 109:8)
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To: reaganaut1
(These CBO numbers assume no negative economic feedback impact from higher taxes.)

In other words, the numbers are garbage. (GI-GO)

7 posted on 11/17/2009 12:49:25 PM PST by 17th Miss Regt
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To: reaganaut1

Bend over, here it comes! Part 1


8 posted on 11/17/2009 12:50:35 PM PST by TexasRepublic (Socialism is a parasite that kills the host)
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To: kevinm13

James Pethokoukis (author of article at Reuters) is one of the good guys who understand economics and is conservative. He has been on Bill Bennett’s Morning in America a number of times and is well informed and explains economics in terms that the common man can understand.


9 posted on 11/17/2009 12:51:14 PM PST by kevinm13 (Tim Geithner is a tax cheat. Manmade "Global Warming" is a HOAX!)
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To: 17th Miss Regt

“assume no negative economic feedback impact from higher taxes”

A ridiculous assumption.


10 posted on 11/17/2009 12:51:14 PM PST by traderrob6
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To: 17th Miss Regt
This obama move will ruin the economy.

Prices on all products will spike, yielding even lower consumer spending.

2010 is going to be a dismal year for private corporations because the taxes are going to destroy any opportunities for them to expand or succeed.

11 posted on 11/17/2009 12:54:41 PM PST by GI Joe Fan (GI Joe represents Real American Heroes, not a bunch of globalist drones.)
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To: Lucky9teen

Exactly..without so much as a kiss, a cigarette or a promise of a second date.


12 posted on 11/17/2009 12:56:50 PM PST by gimme1ibertee ("In a time of universal deceit,telling the truth becomes a revolutionary act"-G. Orwell)
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To: reaganaut1

“Growing economy?” Let’s see, stock market up, dollar down, production flat or down, inventories getting depleted, streamlining about streamlined out, energy prices up. What am I missing here. The only growth I see in this formula is the growth of dollars it is going to take to buy something. The Obamao goons are going to increase taxes on diminished incomes, and call it good.


13 posted on 11/17/2009 12:58:01 PM PST by pallis
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To: traderrob6
“assume no negative economic feedback impact from higher taxes”

Actually, that's more of a BALD-FACED LIE.

It is nothing short of DECEPTION to push such bullsh!t.

Higher taxes to the companies are passed along to the consumer via higher prices at the cash register.

Higher prices at the cash register means fewer goods purchased.

Fewer goods purchased yields minimal to ZERO profit for the company, yielding subsequent layoffs, firings, closings, and potential bankruptcy for the companies.

14 posted on 11/17/2009 12:58:25 PM PST by GI Joe Fan (GI Joe represents Real American Heroes, not a bunch of globalist drones.)
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To: reaganaut1

well i don´t think it´s “really” important for the government (inofficial) from whom they get the tax money as long as they get it. fact is the state “needs” an amount of money (or else they will be bankrupt) and they will get it. the only political question is “from whom can we take most of this money without pi$$ing off too many voters in the next election”. so indeed tax brakes are a “joke” this means if you are on the winning end (we all hope to be on this side) someone else will pay the bill for you. because the bill has (and will be) to be paid.


15 posted on 11/17/2009 1:00:20 PM PST by darkside321
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To: TexasRepublic

I REFUSE TO BEND OVER ANYMORE.

I paid for Medicare 40 years; now the government wants to steal it.

I paid for SS for forty years; now the government wants me dead.

I paid more than my share of income tax for forty years; now the government wants it all.

NO MORE. I REFUSE.


16 posted on 11/17/2009 1:07:02 PM PST by NTHockey (Rules of engagement #1: Take no prisoners)
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To: Lucky9teen

Yes we are.....


17 posted on 11/17/2009 1:10:59 PM PST by b4its2late (Before you can control a horse, you have to break it. Sound familiar?)
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To: GI Joe Fan
2010 is going to be a dismal year for private corporations because the taxes are going to destroy any opportunities for them to expand or succeed.

And Obama and the media will blame it all on Bush.

18 posted on 11/17/2009 1:28:09 PM PST by 17th Miss Regt
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To: avacado

Not only that but the lowest rate of taxation jumps back to where it was beofre the cuts which means anyone who pays taxes will see an increase at the worst possible time ever.


19 posted on 11/17/2009 1:32:44 PM PST by chris_bdba
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To: chris_bdba

Yep! I beleive the lowest marginal rate will jump from 10% to 15%. That’s a whopper chunk of money.


20 posted on 11/17/2009 1:41:46 PM PST by avacado
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