Obama: You know, tax hikes in a recession may be a bad idea

posted at 10:35 am on September 8, 2008 by Ed Morrissey

Barack Obama retreated on another key policy yesterday, and this one has repercussions for his entire economic and spending plan.  Obama acknowledged in an interview on ABC that rescinding the Bush tax cuts in a recession — as he has described the economy — would be destructive.  If so, Obama just eliminated a significant amount of the funding for his hundreds of billions in new government spending:

Democrat Barack Obama says he would delay rescinding President Bush’s tax cuts on wealthy Americans if he becomes the next president and the economy is in a recession, suggesting such an increase would further hurt the economy.

Nevertheless, Obama has no plans to extend the Bush tax cuts beyond their expiration date, as Republican John McCain advocates. Instead, Obama wants to push for his promised tax cuts for the middle class, he said in a broadcast interview aired Sunday.

“Even if we’re still in a recession, I’m going to go through with my tax cuts,” Obama said. “That’s my priority.”

Obama has proposed almost $300 billion in new spending in his presidential campaign.  If he can’t raise taxes, at least in his calculation, all of that becomes deficit spending.  He wants to accuse McCain of fiscal irresponsibility for supporting the extension of the Bush tax cuts, but his spending plans now have no revenue.  How exactly does that express responsibility?

Not only that, but Obama has essentially conceded the Republican argument on those extensions.  Obama says he’ll use his middle-class tax cut as a balance, but overall Obama will raise taxes on corporations and employers, all of which will indirectly hit middle-class buying power.  It will also result in lower revenues overall as the dynamic effect of these tax increases will curb economic growth, resulting in lower profits and less tax revenue — a point Obama makes himself in this statement.

Obama has campaigned successfully on economics mostly through populist rhetoric and class warfare.  He has cast the Bush cuts as egregious without explaining the five years of solid growth they produced.  Now that he has to start getting past the slogans and start producing specifics, he seems lost and self-contradictory.  Small wonder that McCain has closed the gap on economic stewardship from 19 points to three in the latest polling.  Voters have begun to realize that Obama is making it up as he goes along.


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That’s correct, maverick muse. We will all work for the State in GloryBama’s futurama.

onlineanalyst on September 8, 2008 at 10:08 PM

That’s correct, maverick muse. We will all work for the State in GloryBama’s futurama.

onlineanalyst on September 8, 2008 at 10:08 PM
—-
Not me. I work for myself, and only for myself. If I’m not working for my own benefit, eff it. I’m not working. Sorry, I’ve got, erm, incurable, mange. Yeah, that’s it.

Mew

acat on September 8, 2008 at 11:25 PM

I like Fred’s! quote: “Don’t worry, we’re only gonna take water out from the OTHER side of the bucket.

I agree with earlier posts. You don’t work for your boss, you work FOR your family and their future.

Mojave Mark on September 9, 2008 at 12:51 AM

Gee, stealing your money during a time when you’re already making less is a bad idea….

No Sh*t Sherlock! It took you how long to figure that one out, you Ivy League lightweight!!!

E L Frederick (Sniper One) on September 9, 2008 at 1:32 AM

I Big Brother!

electric-rascal on September 9, 2008 at 2:34 AM

(2nd try)

I (HEART) Big Brother!

electric-rascal on September 9, 2008 at 2:35 AM

US House Leaders Plan Vote on Big Foreign Worker Increase This Week — Despite 5-Year Unemployment High

# THE CARING RESPONSE IN WORDS: Anticipating and reacting to the economic uncertainty in so many households, both Presidential Nominating Conventions were full of promises to help the beleaguered American worker.
# THE ACTUAL STAB IN THE BACK: But this week, we get to see what ACTIONS the politicians plan for us. First out of the blocks, the Democratic Leadership of the U.S. House of Representatives is responding this week by trying to shove through a bill — H.R. 5882 — which would provide about 550,000 permanent green cards to foreign workers next year. And those would be ABOVE the 1 million permanent green cards already planned!

MB4 on September 9, 2008 at 3:56 AM

Any which way you slice a liberal’s assertion that he will only raise taxes on the rich, we will be footing the bill. You can not raise enough tax revenue to fund the new programs without raising taxes across the board. Clinton tried that play in his first term, remember?

JAW on September 9, 2008 at 7:09 AM

When will these morons like Obama ever learn that corporations DO NOT PAY TAXES. If you didn’t get that the first time Barry O, then read it again. Maybe repetition is the key to understanding for you.

All businesses and Corporations get their money by selling thing. They either sell goods or services. The money that they get FROM THEIR CUSTOMERS is used to pay their taxes. If the business is not successful in passing on this new expense to their customers then somebody is going to lose their job. Because no matter what, the company has to be profitable to survive. So if you raise their expenses, they need to get that money back from someplace. That someplace is the consumer.

Hawthorne on September 9, 2008 at 7:22 AM

“a pair of lips so large he could float half of Cuba to the shores of Miami (and probably would.)” Heh.

Coronagold on September 9, 2008 at 8:10 AM

Anyone else notice this comes out the day that Bill O’reilly interviews him on exactly this subject?

dalejrfanfreak on September 9, 2008 at 8:45 AM

Let’s see. If the liberals admit that raising taxes hurts the economy when it is weak……..wouldn’t it also hold true that raising taxes will DEPRESS the economy even when it is strong???

Let’s see. The lower taxes during the Bush administration raised 20% MORE revenue than the higher tax rate under the Clinton administration. What’s wrong with this picture?

Conclusion: Democrats raise taxes to purchase votes at the expense of the economy….and to the detriment of the American people! It’s all about power.

artman1746 on September 9, 2008 at 9:07 AM

Is the power to make that decision within his pay grade?

PappaMac on September 9, 2008 at 9:47 AM

I have been reading many PUMA blogs. One that lists Obama’s flips is http://obamawtf.blogspot.com/2008/08/ultimate-list-of-barack-obama-flip.html

Pat in NC on September 9, 2008 at 10:28 AM

Having trouble posting

red131 on September 9, 2008 at 12:24 PM

Thank you Lord for making my political opponents a bunch of bumbling morons. It is because of this, our nation may be spared of economic destruction for at least 4 more years.

Scorched_Earth on September 9, 2008 at 12:43 PM

Anybody know what’s happening with that bill Saint Obama has sponsored that would put another tax on our backs, this time to cure world poverty? Why aren’t we crucifying him on this?

dhimwit on September 9, 2008 at 5:14 PM

Anybody know what’s happening with that bill Saint Obama has sponsored that would put another tax on our backs, this time to cure world poverty? Why aren’t we crucifying him on this?

dhimwit on September 9, 2008 at 5:14 PM

This one? It is below the radar and either off the table or left to the 527s

Senator Barack Obama’s sponsorship of Senate Bill 2433 aligns with the emerging core theme of his general election campaign. The change he promises will bring much-needed relief, not just to America’s victims of economic injustice, but to victims worldwide.

On December 7, 2007, Obama introduced the Senate version of the Global Poverty Act of 2007 (S.2433). On February 13, the bill cleared the Senate Committee on Foreign Relations, on which Obama and 6 (Biden, Dodd, Feingold, Hagel, Lugar, Menendez) of the bill’s 9 co-sponsors serve. The House version of the bill (H.R.1302) passed by a unanimous voice vote last September 25.

His brother lives on a buck a month…..a buck a month.

Maybe his brother should have befriended Rezko.

sven10077 on September 10, 2008 at 5:23 AM

The House version of the bill (H.R.1302) passed by a unanimous voice vote last September 25.

Unanimous? Repubs too? WTF????!!!!!!!!!!!!!!

dhimwit on September 10, 2008 at 6:52 AM

The House version of the bill (H.R.1302) passed by a unanimous voice vote last September 25.

Unanimous? Repubs too? WTF????!!!!!!!!!!!!!!

dhimwit on September 10, 2008 at 6:52 AM

who can be against throwing free money at our “terror” problem???

yeah exactly anyone not earning it….

The GOP knew they lacked the votes so let the donks have it.

sven10077 on September 10, 2008 at 7:48 AM

Hey obamatheliar,..check out this vid,..from your average Joe American!

Warning for liberals Knowledge ahead;

http://www.youtube.com/watch?v=oM3Ls8NNc5Q

christene on September 10, 2008 at 10:24 PM

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