White House: Middle-class taxes out: The Swamp
The Swamp
Chicago Tribune

Keeping Team Obama 'on message,' however, 'may be a bar that is too high.'

Posted August 3, 2009 1:35 PM
The Swamp

by Mark Silva and updated at 3:30 pm EDT

Despite warnings from President Barack Obama's top economic advisers that new taxes for middle-income Americans cannot be ruled out, the White House insisted Monday that the president's "commitment'' to a campaign pledge to avert new taxes for those earning less than $250,000 a year holds firm.

Both Treasury Secretary Timothy Geithner and chief economic adviser Lawrence Summers had suggested during appearances on the Sunday morning news talk shows that tax increases cannot be ruled out for Americans earning less than the threshold that the president has set.

But White House spokesman Robert Gibbs adamantly and repeatedly insisted today that the president remains committed to his pledge - while unable to explain why Geithner and Summers had strayed from the administration's line.

"I know the president has been clear on his commitment about this,'' Gibbs said today in the White House press briefing.

"The president's clear commitment is not to raise taxes on those making less than $250,000 a year,'' Gibbs told reporters pressing for an explanation about apparent discrepancies in the White House's message.

"I hope you'll take my reiteration of this clear commitment... in the clearest terms possible, that he is not raising taxes on those who make less than $250,000 a year,'' Gibbs said.

Pressed again about the conflicting administration comments, Gibbs told reporters: "The president made a commitment in the campaign. The president made a commitment in the campaign, he's clear about that commitment, and he's going to keep it. I don't know much more clear about the commitment I can be.''

The president, arguing that the healthcare reform which he is seeking will not only benefit the public, but also help get runaway government spending under control, has said that he will support tax increases to support his plan only for the wealthiest Americans, such as himself, earning more than $250,000.

Geithner, during an interview aired by ABC News' This Week, said that bringing the federal deficit under control remains a high priority. The annual budget deficit is projected to reach a record $1.8 trillion this year, though Obama has pledged to cut it in half by the end of his term.

Maintaining that overhauling healthcare alone won't bring the deficit under control, Geithner left open the possibility that additional tax revenue may needed.

"We can't make these judgments yet about what exactly it's going to take and how we're going to get there,'' Geithner said in the interview. "If we want an economy that is going to grow in the future, people have to understand that we have to bring those deficits down.

"It's going to be difficult... and the path to that is through health care reform,'' he said. "But that's necessary, but not sufficient. We're going to do some other things, too.''

Summers, director of the president's National Economic Council, was asked about the treasury secretary's remarks on a show that followed, CBS News' Face the Nation. "Was (Geithner) laying the groundwork here for a new round of taxes?'' host Bob Schieffer asked Summers.

No, Summers replied.

No tax increases for "middle-income Americans?" Schieffer pressed.

"Oh, there's a lot that could happen over time,'' Summers said. ".... It's never a good idea to absolutely rule things, rule things out no matter what.''

Gibbs, asked at the White House today why the president's advisers had not stated the commitment to averting new taxes for the middle class as adamantly as the White House was asserting it the following day, said drily: "They left it to me.''

The chief White House spokesman also was asked if other administration officials will be "on message'' from now on.

"Promising that everybody is going to be on message may be a bar that is too high for me to leap over,'' Gibbs said with a smile.

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Comments

"The president's clear commitment is not to raise taxes on those making less than $250,000 a year,'' - BO has already broken this promise when he raised taxes on 20% of the people making less than $250K when he raised the cig tax.


It's amazing the way the Republican party has been able to get the low and middle-income people in their base (mostly the South) to throw logic out the window and not only accept the GOP's BS talking points but to actually go out and protest against their own well-being i.e. healthcare, tax cuts for the rich etc.


The TeaBagger parties were the perfect example of this. The Republican oligarchy had working class dittoheads from their base, who are most likely barely living paycheck to paycheck, out protesting the rich getting a small tax increase and themselves getting a tax cut. And they're actually proud of themselves for doing this!



The president's clear commitment is not to raise taxes on those making less than $250,000 a year,'' - BO has already broken this promise when he raised taxes on 20% of the people making less than $250K when he raised the cig tax.

Posted by: Terry | August 3, 2009 1:42 PM
************************************
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Only in the deluded Wingnut mind of Terri does a cigarette tax count as a tax increase on people making less than $250K.


If you don't like it then quit smoking, you troglodyte



They ought to tax stupidity, then every republican would be an endless source of income.


Obama is not dumb enough to raise income taxes directly on middle class individuals. He'll do it indirectly by taxing businesses, which they then pass along to us.


The cigarette tax should be terminated upon the removal of every cigarette butt from public property. Once not a single cigarette butt can be found from sea to shining sea of our great land, then the tax should be removed.


Hey Terry - An increase in the tobacco tax can be avoided by simply discontinuing the use of tobacco. An increase in the income tax effects everyone . . at least those that pay those that pay income taxes.


Why are we asking the servants these questions? Ask Obamas Masters on Wall Street what will happen


Trickled On You,

I don't smoke, but that is irrelavent.

He said there would be no tax on anyone making less than $250K. The cig tax effects all income levels, therefore, it is a tax on those making less than $250K.

I typed slow so you could follow along.

Smashed,

You would think all low and middle-income people would be democrats since they redistribute the wealth better. Some low and middle class people (mostly in the south) just value what this country was founded on as opposes to the lower and middle class people (mostly in the northeast) that just want more gov't handouts.


Typical lefty liberals like you responding with rude, unnecessary name-calling.

If the cigarette tax is not a tax increase, then what is it?


"Only in the deluded Wingnut mind of Terri does a cigarette tax count as a tax increase on people making less than $250K.


If you don't like it then quit smoking, you troglodyte"


Ah, resorting to ad hominem attack so early. What an awesome display of that famous liberal tolerance and compassion.


The main premise behind the push to massively increase taxation and regulation of tobacco is that nicotine addiction robs smokers of their free will to quit smoking. So either people have the ability to quit smoking whenever they like and therefore there is no reason to regulate tobacco, or people do not have the ability to quit smoking whenever they like, in which case the tobacco tax hike is a broken promise not to tax people with incomes above $250K by virtue of their inability to quit and thus the inability to avoid the tax. Pick one, liberals; you don't get to claim both.


I'm confused about your comment for them being proud of making the system more fair. Yes, they are out protesting the inequality in our tax system. What happens when we run out of rich people (hello NYC!!!)? Pretty soon making 60k a year is going to be "rich." At what point do you just give up and say "F it, I'll let the govt take care of me?" There is no incentive to be rich!

The dems just do what Hugo Chavez has done for years - appeal to poor income fools and since there are more of them than smart people, you get all of the votes.


"Both Treasury Secretary Timothy Geithner and presidential economic adviser Lawrence Summers suggested in Sunday news-show appearances that tax increases cannot be ruled out for Americans earning less than the threshold that the president has set for any new taxes supporting his legislative initiatives."

But of course it's the stooges that do the dirty work so that Barry the liar has plausible denial available.

He knew dam well that to pay for the trillions in deficit, taxes have to be raised. And if not he is a complete incompetent.

But Barry the liar will play it BOTH ways. You know just as he was in the Illinois Senate and never actually voted but only indicated "PRESENT". Welcome to the empty suit.

PROMISE NOT to raise taxes and then say he has no choice.

Welcome to "CHANGE" and by the way kiss truth good-by.


The president may not raise taxes but the individual states and cities are!


That is FUNNY!!!

Is there anyone who actually believes this?


stop smoking genius!


Wait . . . The masses want stimulus packages, universal healthcare, cash for clunkers, and numerous other programs, but don't want to pay for it?? Now there's some shocking news.

Obama should tax everyone for his socialist programs. Watch his approval ratings plummet like a rock when that happens.


Nice Terry. I didn't think anyone making under $250,000 could afford to smoke anyway.


Maybe the President will hold fast on his promise not to raise taxes, but at this point it doesn't matter much since everyone else and their brother has raised taxes. I cannot stand looking at these utility and phone bills anymore, the taxes and "fees" are almost as high as the bill itself. And if our governor has his way our income tax will also be sky high. Makes me think I might be better off not working and letting the government and all of the other poor working stiffs take care of me.


Terry,
How high would the cigarette tax have to be to get you to quit?
Do yourself a favor - figure out what that dollar amount is. When it gets to that amount, quit. Until then, don't complain about your CHOICE to smoke.

I hope he taxes the h#ll out of liquor and cigarettes. When I drink, I'll pay. If I can't afford it, I won't. Big deal.


All studies show that people at the lower end of the economic ladder are more likely to smoke. Besides, Pat Quinn (D) has already said he'll more than taken away the $8 a week Obama cut from our taxes with his tax increase proposals. The republicans in the Illinois legislature are the only ones who've spared us, so far. This is more of the typical democrat doublespeak coming from this president and his economic advisors. Trot out "experts" to advocate a disastrous policy that nobody will like, publicly say it will never happen the next day to set up a "debate" and then wait for the economy to turn more sour and "reluctantly" agree to soak the citizens for even more taxes to pay for your deficit spending. Sadly typical. This is step one.


I read that's it's cheaper to smoke pot than it is cigarettes, I guess this is what the politically correct wanted. The movie and TV industry should be taxed, for they do more harm to society than anything else. Funny that even after Obama lies, no one calls him out on it. Words, just words..... and I think he just read Pelosi's words.


The 'great baloney slicer' makes hay out of cow manure. If his lips are moving, it's a trick.


WOW! When did Liberals become so intolerant and hateful? I expect it from the Repubs but Dems need to take a look in the mirror.


Someone in the administration is lying. Two budget leaders leave the door open to a tax increase for the middle class. A press secretary says no. And of course, we know all about Obama's campaign promises. Has he kept even one of them?


Here is the way things work.

Raise taxes to improve infrastructure and make things easier for working families -SOCIALIST

Increase deficit spending to destroy a country, then pay Haliburton to repay it - Fiscal Conservative

To ddumb to recognize the above is just plain stupid-Republican


The government will always go after the middle class for the money they need. It is such a scam. "We won't raise your income taxes, but we will charge you more to buy anything that you need and you will pay even more to own a home and pay for the postage stamp that your home is on". You may not see it in your check but you will see it in your checkbook. They are all liars and crooks. Even Obama.


You would think all low and middle-income people would be democrats since they redistribute the wealth better. Some low and middle class people (mostly in the south) just value what this country was founded on as opposes to the lower and middle class people (mostly in the northeast) that just want more gov't handouts.

Posted by: Terry | August 3, 2009 3:05 PM
**************************************
.


Like a petulant child deprived of a cookie, Terri and the Repuglican dittoheads are stomping their feet and whining 'why isn't everything better RIGHT NOW?!?! Just six months into an Obama presidency that inherited from the BushCo Republicans the worst economic conditions since the Great Depression and damn it, that watered down stimulus bill (thanks again Repugs!)--that HAD to include tax cuts demanded by the GOP that does little to nothing to stimulate--isn't giving us immediate gratification and relief? Amazing!


Never mind that Obama had to deal with nutjob Repuglican governors refusing stimulus money in order to score cheap political points with their Wingnut base and that some states are using the stimulus money to shore up budget shortfalls. Never mind that economists said it would take 12-18 months to see results, the Repug dittoheads want their cookie NOW!



I fall into the under $250k tax bracket and have no problem with them raising taxes on me if 1) government spending is done in a wiser fashion, and 2) it will help get our economy in order quicker. Too many people want everything but don't want to have to pay for it. In order to have a more prosperous future for the most (because all is not realistic), we may need to suck it up a little bit more right now. As we all know, many political decisions are based on the popularity with the voting public, not necessarily on whether it is the prudent thing to do.


This is more of the typical democrat doublespeak coming from this president and his economic advisors. Trot out "experts" to advocate a disastrous policy that nobody will like, publicly say it will never happen the next day to set up a "debate" and then wait for the economy to turn more sour and "reluctantly" agree to soak the citizens for even more taxes to pay for your deficit spending. Sadly typical. This is step one.

Posted by: Jeff | August 3, 2009 3:54 PM
-----------------------------------------------------------------------------------------
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If you do just the bare minimum amount of research into deficit spending by political partues you'll easily find that Jeffy here and his BS Wingnut talking points about the deficit are full of crap....again.


Over the last 30+ years Republican presidents have done nothing but cut taxes for the rich and deficit spend Americans into oblivion.
.
http://www.well.com/~sunbear/deficit.jpg



I think the song "Sunday School" by Milktoast Intolerant describes Obama perfectly


Democrats not raising taxes?? YAAAA RIIIIGHT


The Obama con continues. No way can he come close to building his nanny state on the backs of the so-called wealthy only. Even the NYTimes admitted this in an article today. You're being snowed (again) Kool Aid Kids.


Namecaller, what are partues? Please try to debate like an adult, if you can, and leave the namecalling at home, okay? It's a well-known fact that Obama has already added $1 trillion to the deficit with his own leglisation and has already outspent Bush in the short time he's been in office. Try to keep up, okay?


That’s not the point Abbie… It’s just that we keep taxing and spending. We just keep taxing groups with a small amount of individuals so we don’t tick off a large number of people. At what point to we get into your kitchen? Do you like fancy dresses? They aren’t necessary so let’s tax the h#ll out of them. Do you like boats well they aren’t necessary lets tax the h#ll out of them. Do you like solid wood cabinets? Well veneer is cheaper so let’s tax the h#ll out solid wood cabinets. Do you like fancy shoes? Well they aren’t necessary lets tax the h#ll out of them. What happens when people stop smoking and drinking and the tax revenue goes away. They will be coming after you. At what point will you say enough is enough.


MAJOR RALLY TO SUPPORT PRESIDENT OBAMA'S
HEALTH CARE REFORM EFFORT

"The Time is Now"

When
Tuesday, August 4, 2009, 4:30 PM - 6:00 PM

Where
Federal Plaza
ADAMS & DEARBORN, CHICAGO, 60606
(CTA stops: Monroe Blue Line, Monroe Red Line)

Speakers
U.S. Representative Jan Schakowsky
& Others To Be Announced!


Joe,

You are absoultely correct - one quits cigs, one doesn't pay the tax. An irrelavent point -0 BO said he would not raise taxes on people that made over $250K. he DID NOT say he would not raise taxes on people that made less than $250K AND did not smoke.

Enemy,

If the idea behind the higher tax on cigs is to make people quit, then make the tax $100 per pack and be done with it. The fact is the real addiction to quit is Congress with our tax money.

Stewies Stuffed Animal,

You are just plain ignorant.

Abbie,

I don't smoke.

Trickled On You,

BO's economists said that if the Stimulus was passed, unemployment would not go much over 8%.

Remember VP Foot in the Mouth saying that the Stimulus was going to provide an immediate jolt?



I think we need single payer national health ins, and everyone should pay something.


Repugs are idiots,

Great chart. I have repeatedly posted that for John D, Terry, et al.

Just like 'the Barfers' and the holocaust deniers they reject the obvious truth.


WOW! When did Liberals become so intolerant and hateful? I expect it from the Repubs but Dems need to take a look in the mirror.


Let's hope that all of the sheeple realize that while an "income tax" is not favored at this moment in time, a national sales tax IS. Don't let Barry fool you again.


And this is all in the name of paying down the deficit, which the government has run up (starting with Bush and his war). Why is it we aren't hearing much about stopping the war and how much that would reduce the deficit? Why can't we get the govt of Iraq to pay for our forces over there? Why must we bankrupt our country to help another one (regardless whether you believe in the war or not, which I don't). Why should we struggling folks have to pay off this ridiculous debt that went to prop up the financial system? Can he show us how he's saved money and how health care reform will save money????


Who buys Obamas cigarettes? Tax free?

At the beer summit did Obama buy?

Did Jesse Jackson supply the dud Bud?

How can Obama disagree with his two closet economic advisers? Timmy Turbo Tax and Larry the WHO's favorite guy!

Lastly, tax issue, when will Charles Rangle be indicted for tax evasion? Maybe he could at least pay the amount he cheated on? I guess he's just following Timmy's lead.


I am still amazed that people are still quote that Bill Clinton had a surplus. It is not true, it is more of an accounting trick.
GO TO THE TREASURY WEB SITE AND VERIFY IT.

http://www.treasurydirect.gov/NP/BPDLogin?application=np


Fiscal
Year Year
Ending National Debt Deficit
FY1993 09/30/1993 $4.411488 trillion
FY1994 09/30/1994 $4.692749 trillion $281.26 billion
FY1995 09/29/1995 $4.973982 trillion $281.23 billion
FY1996 09/30/1996 $5.224810 trillion $250.83 billion
FY1997 09/30/1997 $5.413146 trillion $188.34 billion
FY1998 09/30/1998 $5.526193 trillion $113.05 billion
FY1999 09/30/1999 $5.656270 trillion $130.08 billion
FY2000 09/29/2000 $5.674178 trillion $17.91 billion
FY2001 09/28/2001 $5.807463 trillion $133.29 billion


raising taxes on cig's REALLY helped out Cook County ! When oh when will Democrats learn??


CM,

Let's see BO propose a medicare type tax for his healthcare plan - he'll have 80% of his supporters desert him.

That's a great chart - wish it showed what the future looks like under BO's proposals - the chart would have to have a shovel to dig that far south.

Shasta,

You must be new in here.


Sure, lets tax cigarettes cause they are bad anyways, and I do love Washington fat cats deciding what is best for me. I hope they tax gasoline next, cause it's not really a tax if you don't drive. And while we are at it, caffine is bad too, so lets put another $3 on that cup of starbucks. Maybe once the middleclass can't afford anything they will finally try and reign in the rediculous spending. Nobody in government seems to notice, cause they just keep giving themselves raises.


I think Geithner and Summers were trial balloons that Obama sent floating out there to see what would happen. He sees he'll get his hat handed to him (as he should), so he's reining it in.

But -- you can't spend like he's spending, without tax increases, so someday we'll have a whole new "read my lips; no new taxes" moment.


Remember VP Foot in the Mouth saying that the Stimulus was going to provide an immediate jolt?
Posted by: Terry | August 3, 2009 5:08 PM
***********************************
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Listen to the Wingnut crybaby section (led by Terri) on here - Waaaaah!!!!


Obama has only been in office 6 months and they're already trying to dump the last eight years of BushCo Republican screwups, the ones that put us in the economic crap-hole that we're in now, on him.


Unfortunately for the right-wing droolers (Terri), no one listens to them anymore.
.
http://theplumline.whorunsgov.com/political-media/the-incredible-shrinking-gop-only-one-in-five-self-identify-as-republican/


Obama is only spending to stimulate the economy because the Bush administration took a budget surplus they got from Bill Clinton and blew it by doubling our national debt in only eight short years. And they did it by giving tax cuts to the richest 2% and starting an unnecessary war, among other things.


Obama is investing in AMERICAN JOBS FOR AMERICAN PEOPLE and he's only doing it because after the eight years of Conservative deregulated cowboy trickledown crap economics trashed our economy, he had no choice.


I know the deadender wingnuts on here already know this but you figure you're going to con people into coming back to that train wreck you call the Republican party by lying. You're not, because most people in this country aren't as stupid as the average Republican is.
.
http://conservationreport.files.wordpress.com/2009/03/history-of-budget-surplus-deficit.gif



Obama doesn't raise taxes, Obama doesn't lower taxes. Obama is the president; the Congress has to handle the legislation that would change taxation, and Obama would get to sign or veto it.

Suppose that Congress hands Obama a bill that includes many things that he wants, things he's promised the American people, and includes a tax increase to pay for it? What's he going to do then, veto the whole thing? Congress would have him over a barrel.

That's what happened to George H. W. Bush and his "Read my lips" pledge. The tax increase that took place on his watch was a political defeat for him, but we've never let him forget it.


You do realize that next year when President Bush's tax cuts expire then everyone that earns will be paying higher taxes by default. Yes that means that not only the "wealthy" but everybody


Trickled On YOu,

During those 8 years of the Bush Administration there was 73 straight months of economic growth.

Income tax cuts from the Bush Administration went to ALL INCOME TAX payers.

BO is investing in jobs as he contniues destroy or lose 3 million jobs.

Go to bed in mom and dad's basement. Sweet Dreams


People, put things in perspective. BOTH of Bush's wars and eight years of his spending have already been eclipsed in 6 months of Obama. 6 Months, that was it. Total the spending for porkulus and the budget, including new federal programs such as cash for clunkers and you have $1.297 trillion in new spending. http://blogs.abcnews.com/politicalpunch/2009/02/obamas-budget-a.html
If Bush's spending was high blood pressure (somewhere around $600 billion over all 8 years) then Obama's has to be a heart attack. And Obama owns all of it whether you like it or not. Summers and Geithner know things about the economy. They know that level of spending can't be sustained without new taxes and, for once, their boss let them say it. Because it went over like a lead balloon Obama and Gibbs are saying it will never happen. But ask yourself this: who knows more abou the economy? Summers and Geithner, or Obama and Gibbs?


:You would think all low and middle-income people would be democrats since they redistribute the wealth better. Some low and middle class people (mostly in the south) just value what this country was founded on as opposes to the lower and middle class people (mostly in the northeast) that just want more gov't handouts.

Posted by: Terry | August 3, 2009 3:05 PM "


The Northeastern states (as MOST blue states) contribute more to the US treasury than they receive.

The Red states (mostly the South) typically TAKE more than they contribute.


I didn't hear them rule out getting hit by a meteor either. Therefore, prepare for Hail bop.....oh noooooo.....


Davey,

It called Social Security payments and military spending - that tends to move south. Also, more tax revenues from the north since incomes are higher due to the cost of living.


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