Posted on 12/30/2008 7:42:50 AM PST by St. Louis Conservative
President-elect Barack Obama may be about to make a big mistake: raising taxes in the middle of a recession.
That's what his top political aide, David Axelrod, hinted Sunday: The Bush tax cuts are "something that we plainly can't afford, moving forward," Axelrod said. "Whether it expires, or whether we repeal it a little bit early, we'll determine later. But it's going to go."
Either way, of course, would deal a significant blow to the economy. But moving up the hit to a time when the nation is struggling to recover from a brutal downturn would simply intensify the pain - and jeopardize any possible recovery.
True, during the presidential race, Obama did call for an immediate repeal of the cuts. But after the election, he thought better of it - suggesting he might just wait and let them expire, as scheduled, in 2010.
No doubt, scrapping "tax cuts for the rich" has political appeal. After all, many Americans - particularly those not among the top earners - see no problem with having other folks pay more in taxes.
So it's hardly surprising that Obama's political adviser is pushing the idea.
But, as policy, it would be disastrous.
As it is, those at the top of the scale already carry the bulk of the load: The top 5 percent, for example, pay 60 percent of federal income taxes.
Obama may mask his tax hike by pushing a middle-class tax cut.
But the Bush cuts helped demonstrably in the one area of the economy that needs help the most today: investment.
(Excerpt) Read more at nypost.com ...
Buckle up, folks. It’s going to be a long four years of Depression before we vote this idiot back out of office.
Carry backward and carry forward opportunities are going to make that $2 trillion deficit turn into a $4 trillion deficit for just 2009.
Make that 8 years. Obama will be campaigning for a second term the day he takes office and the MSM will blame Bush for everything that goes wrong over the next four years.
You don’t really think the people will vote him out of office do you? We have become a nation of takers not givers. Who ever promises the most freebies wins no matter what the consequences or burden on future generations. How sad we have become......
But didn’t the Bush tax cuts result in the largest collected tax receipts in the history of the country?
Don’t confuse ‘Progressives’ with facts!
Remember what Obama told Charlie Gibson, it’s not ‘fair’ that people should have more money than another!
See Hauser’s Law!
Raise taxes, lower revenue (lower GDP)
Hang onto your wallets.
Refuse to invest or spend as long as the commander in thief hints at raising taxes to spread your wealth.
Let the Axelrods figure out what happens when they beat to near death the horse pulling an overloaded cart.
John Galt lives.
While I agree that the rich aren’t going to be paying as much in taxes as the middle class....I do question your statement about “carry backward and carry forward.” You can ONLY carry about $3000 a year in losses, if my memory is correct. With their losses they’ll be able to carry them for about the next 200 years, probably....
It won't be a mistake. It will be intentional.
President-elect Barack Obama may be about to make a big mistake: raising taxes in the middle of a recession.
The propaganda ministry (what we used to call the media) will blame the entire economy (recession, depression, whatever it turns out to be) on Bush. If it gets worse because of the policies of the new administration, the propaganda ministry will still blame everything on Bush. Obama will make it bad enough to get his socialist agenda through the Dem controlled Congress.
The One wants "fairness" in his tax policy. He doesn't care if it hurts the economy. He doesn't care if tax revenues go down. He wants to reward the "middle class" and stick it to "the rich."
On the jobs front, he doesn't want to grow the economy. He wants to develop "green jobs" and develop "sustainable businesses." And the propaganda ministry will laud every "green job" that is created and every "sustainable company" that opens. And if they go belly up in 6 months, it will be because of George Bush's economic mess.
Neither Pelosi, Reid, nor The One and his incoming administration want to "waste this crisis." They need the biggest possible crisis, so they can pass more of their "save the planet" and "help the little guy" agenda. They have no idea how to create real jobs.
But they don't want to allow "the rich" to create jobs that they don't like and can't take credit for. It will be easier to create "green jobs" if they have a lot of unemployed people who will have to settle for a "green job." So they don't want the competition from productive "old fashioned, non-sustainable" businesses.
I fear you are correct.
It isn't. You can't write off more than $3000 in long term capital losses against income in any one year, but you can carry it forward indefinitely. This is for individuals -- corporate carryforwards and carryback rules are more complex and have some time limitations.
“That’s what his top political aide, David Axelrod, hinted Sunday: The Bush tax cuts are “something that we plainly can’t afford, moving forward,” Axelrod said. “Whether it expires, or whether we repeal it a little bit early, we’ll determine later. But it’s going to go.”
Hey no problem, it’s obviously what the voters wanted when they elected this joker. They’ll get the government they deserve.
All I have to say is that HW Bush lost his re-election based on the “read my lips” quote, hopefully obama was not paying attention to that, thus we are only in for a 4 year ride.
And the propaganda ministry will laud every “green job” that is created
The best “green job” to be created would be to shut down the newsprint business - after all they use a resource that ends up in a dump.
I don't see Obama donating/giving HIS MONEY to charities etc.
There, fixed it.
It’s always the ‘progressives’ that want to give other people’s money away. (I’m a Dave Ramseyite and donate 15% to charity)
The Republicans should turn the tables on these limosene liberals and demand a 1% wealth tax (surcharge on all wealth) on those with over $10M (mostly Dems) and see what happens!!!
Well someone is going to have to pay for the Utopia and all the ditch digging jobs Obama is going to offer us.
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