Obama's tax gambit

How exactly will further taxing the rich improve the economy?

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Barack Obama is hoping how he looks covers up how he thinks.


In a dashing but desperate gamble to save his presidency, Mr. Obama is trying to pull off a trick that magician David Copperfield would envy: He wants to convince Americans that the economy is the same thing as the federal bureaucracy.

He wants to improve the economy by raising taxes.

“I believe our prosperity has always come from an economy that’s built on a strong and growing middle class,” he said Monday. “So that’s why I believe it’s time to let the tax cuts for the wealthiest Americans, folks like myself, to expire.”

Come again? How does raising taxes on some improve the economy for others?

Yet, that’s apparently how he thinks, and how he wants you to think.

Or at least that’s how he’s thinking today. Three years ago, he said it’s a mistake to raise taxes in a down economy.

Which is it, Mr. President?

Well, here’s the answer: Economically, the Barack Obama of three years ago was right. But the Barack Obama of today isn’t thinking so much economically as politically. He wants to look good by taking on those mean-old rich people.

This is not a serious proposal, folks. It’s a cynical election-year tactic.

The numbers alone tell you it’s not serious. As others have reported, raising taxes on the rich would mean $85 billion in revenues, if that – less than nine days’ operating capital for the federal government.

That’s no solution.

Mr. Obama also wants to increase the tax rate on capital gains, which history shows would likely bring in less revenue while it further stalls investment.

In addition, as the Barack Obama of three years ago noted, “The last thing you want to do is to raise taxes in the middle of a recession because that would just suck up, take more demand out of economy. And put businesses in a further halt.”

Just remember when he sings this tired “tax them over there, it will help you” refrain: The federal government is not the American economy. You don’t help the economy by pouring more money down the bureaucratic rat hole; fact is, as Obama admitted in an unguarded moment three years ago, it hurts the economy.

This president is not just trying to bamboozle you into thinking that higher taxes can improve the economy, but he’s also trying to demonize others in order to take attention away from his dismal economic record. The numbers speak for themselves. As columnist Mona Charen noted this week, “June brought the perfect encapsulation of the Obama economy: More Americans signed up for disability benefits than got jobs. According to government statistics, 80,000 Americans found work last month, while 85,000 dropped out of the labor force altogether to collect Social Security disability payments.”

Meanwhile, Democratic National Committee Chair Debbie Wasserman Schultz tried to sell a fairy tale last weekend by saying she was “pretty happy” with the nation’s job growth numbers: 80,000 new jobs in June, 69,000 in May. Experts say the economy needs to create 250,000 new jobs to stay even or to have any hope of reducing unemployment.

And speaking of fairy tales, even left-leaning NBC News had to admit that his re-election bus tour “had the president trying to reconcile a tour about economic growth with numbers that point to almost the opposite.”

Moreover, true unemployment is much worse than the official government line. The number most used is 8.2 percent. But the “U6” unemployment rate, which includes those looking for work as well as those who’ve given up, is closer to 15 percent.

So don’t be fooled, as the erstwhile candidate of “hope and change” now brings you “fear and loathing.”

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robaroo
929
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robaroo 07/11/12 - 11:08 pm
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5
And in Other News...

The Republicans in the House had one more show vote on Obamacare knowing nothing has changed since the last show vote on Obamacare.

It's nice to know the Democrats and Republicans are working so hard to fix the problems facing the country.

carcraft
33454
Points
carcraft 07/12/12 - 04:32 am
3
3
robaroo, I agree, the House

robaroo, I agree, the House of Representatives has passed over 30 jobs bills. Reid in the Senate won't take them up. http://abcnews.go.com/blogs/politics/2012/01/as-gridlock-consumes-congre... Now they claim that the Republicans in the House know they won't pass in the Senate. Of course, it has always been and always will be that way. The Senate passes it’s version of the bill. Once the Senate version of the bill is passed it goes to reconciliation and the differences between the House and Senate versions are hammered out. Reid blocking bills then gives the Obama room to criticize the House and Obama doesn't have to deal with popular or unpopular bills that could tarnish him by vetoing or signing them into law!

carcraft
33454
Points
carcraft 07/12/12 - 04:40 am
8
5
Obama haas mantained a

Obama has maintained a horrible economy spent like a drunken sailor on his first shore leave and has nothing to run on and hopes class warfare will work!

Craig Spinks
819
Points
Craig Spinks 07/12/12 - 05:37 am
7
1
"As columnist Mona Charen noted this week...

80K Americans found work last month."

WRONG: The number of employed Americans increased by 80K in June. The number of our fellow citizens who found new jobs in the private sector in June was considerably higher than 80K but was offset by sizeable increases in the number of state and local government workers who were laid off because of declining state tax revenues.

We have a recovery in private employment's being stymied by retrenchment in employment in the public sector. How many policemen, firemen, teachers, and parapros have lost their jobs? While few of us will be directly adversely impacted by these cuts, these cuts are indirectly adversely affecting us by acting to retard our recovery from The Great Recession.

constituent
164
Points
constituent 07/12/12 - 06:51 am
2
5
How can you agree to

How can you agree to something that's not truth? Speaker John Boehner and House Republicans have pass no jobs bill, since voters sent them to Washington to create jobs. Tea Party voters and Republican elected officials are getting frightened and they're saying anything they can to marginalize our growing effort to hold them accountable. Even, Gov. Romney asks Fla's Rick Scott to downplay job gains. Mitt Romney's presidential campagin asked Flordia Gov. Rick Scott to tone down his statements heralding improvements in the state's economy because they clash with the presumptive Republican nominee's message that the nation is suffering under President Barack Obama. Gov.Rick Scott, a Republican was asked to say that the state's jobless rate could improve faster under a Romney presidency, everything Republicans say and news media print are lies about the President.

Techfan
6464
Points
Techfan 07/12/12 - 07:22 am
4
6
Why is it that when the GOP

Why is it that when the GOP discusses the costs of a bill that adds to revenue, they use a yearly figure, ie. "it only brings in $85 billion a year" .When they discusses the costs of a bill that helps average Americans like the ACA, they use cost figures covering the next decade, ie. "the ACA costs $1.1 trillion"? Letting part of the Bush tax cuts expire (since the GOP wrote the bills to have all of them expire in 2010) would bring in $850 billion, which would almost entirely pay for the ACA, and provide millions of Americans with health insurance. A slight tax hike on around 2 million people vs insurance for around 32 million Americans? The latter makes much more sense.

Rhetor
1160
Points
Rhetor 07/12/12 - 07:32 am
6
5
Taxes under President Obama

Taxes under President Obama have reached record lows by a number of measurements. I think that it is bizarre that the conservatives still pitch that he is a tax and spend liberal. No, President Obama proposes cutting taxes on ordinary Americans and not on the super-rich. Have a great day, folks.

Techfan
6464
Points
Techfan 07/12/12 - 07:42 am
4
7
Question of the day: Instead

Question of the day: Instead of worrying about job creation and the economy, can the GOP hit 40 votes against the ACA by election day?

nofanofobama
7436
Points
nofanofobama 07/12/12 - 07:54 am
8
3
what!!!!!!!!!!!!what tax cuts

what!!!!!!!!!!!!what tax cuts for the middle class..since 2001 we have been told day after day, by dims and the mass liberal media that the tax cuts were for the rich only...so im a little confused how obumler can now talk about keeping these tax cuts for the middle class which his party refused just years ago to even exist...and for 1 year?? ...what kind of policy is that..it is a self centered ego-centric proposal so that next year he can give us our own money again and again the next year..yet another program which obumler can dishes out and boast about..this is not serious tax policy ...and rhetor .. not a tax and spend liberal?? what country have you lived in lately...and why the left obsession with destroying the wealthy...if we are all poor..how does that help you????

Southern Leslie
2206
Points
Southern Leslie 07/12/12 - 08:01 am
6
2
How does the ACA help the
Unpublished

How does the ACA help the average citizen if it causes premiums to increase?

Techfan
6464
Points
Techfan 07/12/12 - 08:06 am
2
9
Ever hear of percentages?

Ever hear of percentages?

Southern Leslie
2206
Points
Southern Leslie 07/12/12 - 08:13 am
5
2
Yes I have. Ever heard of
Unpublished

Yes I have. Ever heard of increased risk due to being forced to cover pre-existing conditions? People who choose to not have insurance will simply pay the lower TAX and continue to not have insurance, until they actually need it. The cost of covering this increased risk will result in increased premiums. Can you explain anywhere else the money will come from?

The ACA does not work without the individual mandate, which was found to be unconstitutional.

justthefacts
32239
Points
justthefacts 07/12/12 - 08:22 am
6
2
LOL

It takes a lot gall for Democrats to talk about job creation. Haha. Man, does the buck stop anywhere near the White House anymore?

justthefacts
32239
Points
justthefacts 07/12/12 - 08:33 am
5
2
Ruse

President Obama knows he can't raise taxes now. It's all a ruse to try and further divide the country. Maybe give some hope to the wealth envy crowd. Divide and conquer. I guess we will see how it works in Nov.

allamr18
41
Points
allamr18 07/12/12 - 08:49 am
4
6
Hmm

When the economy is good, Republicans say cut taxes and spending, when the economy is bad cut taxes and spending. When we have 2 wars and a 7 trillion dollar Prescription drug plan cut taxes and spending. When we have trillions of dollars in deficit cut taxes and spending. I dont think it really matters whats going on in the economy or world the answers will be the same from republicans. Cut taxes and spending. Insert democratic president here and the charge would be he raised taxes and increased spending. Fact is Bush 1 and Clinton after increasing taxes helped pay off the deficit and grew the economy. Reagan cut taxes so deep he had to raise them and left with a deficit. Bush II has cut taxes so much we know what he left us. Obama I wish would stop renewing all these stupid tax cuts. And Americans need to say you know what lets pay off the deficit and debt. Lets take 5 years have higher taxes and send all of that to the debt and deficit and be done with it. If "job creators" dont like helping out their country by paying more then so be it.

TParty
6004
Points
TParty 07/12/12 - 08:50 am
2
2
"President Obama knows he

"President Obama knows he can't raise taxes now."

Why can't he push for it?

Southern Leslie
2206
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Southern Leslie 07/12/12 - 08:51 am
3
2
You are right, allamr...even
Unpublished

You are right, allamr...even though the President himself said that his tax increase plan wouldn't help the deficit....let's do it anyway.

Southern Leslie
2206
Points
Southern Leslie 07/12/12 - 08:52 am
3
2
Why WOULD he push for it when
Unpublished

Why WOULD he push for it when he, himself said you shouldn't raise taxes in a recession? Was he wrong then or is he wrong now?

TParty
6004
Points
TParty 07/12/12 - 08:55 am
2
2
Didn't Obama say you should

Didn't Obama say you should not raise taxes on the middle class- but has always stated that people like himself should pay more taxes. Isn't that why he is pushing for the money made after $250,000 to be exempt from the Bush Tax cuts?

Southern Leslie
2206
Points
Southern Leslie 07/12/12 - 08:57 am
3
2
He DID raise taxes on the
Unpublished

He DID raise taxes on the middle class.....ever heard of the ACA?

He also said taxes shouldn't be raised AT ALL during a recession..again I ask...was he wrong then or is he wrong now?

TParty
6004
Points
TParty 07/12/12 - 09:04 am
2
3
I've heard Obama speak all

I've heard Obama speak all the time about rich folks do not need the Bush tax cuts. A dozen times he as said it clearly- while saying do not raise taxes on the middle class during the recession. He has always made the distinction about rich people should pay more. Ever see him talk? He does the same thing ever time. Shakes he his some while saying "People like myself can pay more" While holding his gaze to the left with his hand on his chest. Very odd- he does it every time.

And if you already have health insurance, you won't be taxed at all. In fact- you'll get more tax deductions. If you do not have health insurance, and you can afford it, you will pay extra in taxes. Or another way to look at it is- you'll be fined. If a police officer pulls you over for not wearing your seat belt, and writes you a ticket- would you say you are being taxed? No, you're being fined for not following the law.

EDIT: When I said you won't be taxed at all- that clearly not true, you'll still pay taxes. However, your taxes will not increase.

Southern Leslie
2206
Points
Southern Leslie 07/12/12 - 09:04 am
3
2
Also....if the President
Unpublished

Also....if the President TRULY BELIEVES that he should pay more taxes, then why didn't he just take the standard deduction on his tax return?

faithson
6143
Points
faithson 07/12/12 - 09:06 am
3
3
59% say go for it, tax 'em !

gallop poll on tax increase for incomes over 250,000. 7/12/12

Southern Leslie
2206
Points
Southern Leslie 07/12/12 - 09:08 am
2
2
He sure didn't make a
Unpublished

He sure didn't make a distinction here. This is him talking.

Again...was he wrong then, or is he wrong now?

http://www.youtube.com/watch?v=aufAtuTwKlE

justthefacts
32239
Points
justthefacts 07/12/12 - 09:07 am
3
2
$250K

T-Party, you do realize that many of the people in the $250 range are small business owners don't you? Guess what they do when you raise their taxes? How high would you like the unemployment number to go? Unreal.

faithson
6143
Points
faithson 07/12/12 - 09:15 am
2
3
lowest taxation in 30 years

Taxes are at their lowest level in 30 years. Can WE ALL agree on that FACT. LOWEST. How about it, Car; Just; Leslie; etc., can WE ALL agree on at least that much ?

Southern Leslie
2206
Points
Southern Leslie 07/12/12 - 09:18 am
4
2
faithson...what is your
Unpublished

faithson...what is your point. Are you just proving my point about diversion? Almost 50% of the people pay NO FEDERAL INCOME TAX and it is the same ones who say the prosperous should pay their "fair share." It's nonsense.

Southern Leslie
2206
Points
Southern Leslie 07/12/12 - 09:18 am
4
1
Spending is the highest that
Unpublished

Spending is the highest that it has been EVER....can we all just agree on that?

TParty
6004
Points
TParty 07/12/12 - 09:21 am
4
2
I can show video's where

I can show video's where Obama says the Bush Tax cuts need to expire on the rich- and I can show more video's of Obama saying one thing, doing another. It's what politicians do. In your video Obama said normally you would not raise taxes- and that what has been coming out of congress has been just that.

Also, normally, you don't put a couple of wars on a credit card- but that's what happened. We need to pay that off.

And if a small business owner, after paying his workers, and phone bills, supplies and other things for a year, and pays their self a salary of more than $250,000 (Because we are talking income tax here)- then by what is being proposed- the income after $250,000 will be taxed like it was prior to the Bush tax cuts.

What also needs to happen is spending needs to go back like it was under the Clinton Admin. Throw that back into a liberals face when they talk about tax rates under Clinton.

Southern Leslie
2206
Points
Southern Leslie 07/12/12 - 09:23 am
2
2
So you can TParty....so which
Unpublished

So you can TParty....so which time was he wrong?

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