Obama Administration: Yeah, higher taxes are coming
The Obama legacy is in the process of being fulfilled. After expanding the size and scope of the state, the next step is feeding the beast:
Higher taxes must be considered to rein in the country’s mounting debt, a member of President Barack Obama’s fiscal reform commission told The Hill on Monday.
Alice Rivlin, who headed the Congressional Budget Office and the Office of Management and Budget, said that the highest priority is to reduce healthcare spending but that reforms to entitlement programs and higher taxes should also be considered.
“We have to ‘bend the curve,’ as they say in medical cost increases,” she said. “And Social Security is a rather minor part of the problem, but fixing that would have a lot of confidence-building effects, I think, and we have to take action on the revenue side as well.”
Rivlin is one of 18 members on the debt commission, which is to provide recommendations to Obama and Congress by December on getting the U.S. fiscal house in order.
A former Republican senator who works with Rivlin on budget issues went further.
Former Sen. Pete Domenici (R-N.M) said higher taxes, along with entitlement program reforms and spending cuts that include the Defense budget, will almost certainly have to be a part of a fiscal reform package to rein in the country’s $12.8 trillion debt.
“You’ve got to have taxes and hope taxes won’t destroy the economic growth,” Domenici, a former Senate Budget Committee chairman, told The Hill in an interview.
Doesn’t that inspire confidence? Let’s raise taxes on everyone and cross our collective fingers hoping that those higher taxes do what tax increases of years past were never able to do–spur economic growth. Lovely.
And what about that “nobody making over $200,000 will see an increase in any sort of tax” pledge by candidate President Obama?
In his budget proposal, Obama has proposed higher taxes for some taxpayers.
Obama’s budget would lead to higher taxes on individuals making more than $200,000 and families with incomes above $250,000 by allowing the George W. Bush-era tax cuts for those people to expire.
But that wouldn’t be enough to rein in the deficits, which would still average nearly $1 trillion for the next decade, according to the CBO.
Yeah. Expect to hear a lot of that as we get closer to the 2012 election. The White House will allow these tax increase trial balloons to be floated about, and then he will make the pronouncement that his hand was forced by the policies of “my predecessor”. Finally he will talk about how we all have to make sacrifices to atone for the mistakes of White Houses past.
In other words, the President lied.