Great news: Left-wing president turns into tax-cutting conservative just before midterms

posted at 7:40 pm on September 2, 2010 by Allahpundit

Why not? Policy-wise, he’s tried Keynesianism, and politically, there are no other options for wooing back a few independents to the Democratic side before November. The left will forgive him if it helps to preserve the congressional majority in the Senate, and since the majority in the House is a lost cause, he’d probably be pushed by the GOP into doing something like this next year anyway. Might as well do it now and take as much of the credit as he can.

With the recovery faltering less than two months before the November congressional elections, President Obama’s economic team is considering another big dose of stimulus in the form of tax breaks for businesses – potentially worth hundreds of billions of dollars, according to two people familiar with the talks.

Among the options are a temporary payroll tax holiday and a permanent extension of the research and development tax credit, say people familiar with the talks who spoke on the condition of anonymity in order to describe private deliberations.

Permanently extending the research credit would cost roughly $100 billion over the next decade, tax experts said. And depending on its form and duration, a payroll tax holiday could let businesses keep more than $300 billion they would otherwise owe the Treasury.

Since prominent lefties like to remind us of how awesomely well Social Security is doing financially, there should be minimal screeching about a temporary revenue shortfall due to a payroll tax cut, no? But wait — that ain’t all.

Worried about the fragile economy and their own upcoming elections, a growing number of Democrats are joining the rock-solid Republican opposition to President Barack Obama’s plans to let some of the Bush administration’s tax cuts expire…

“In my view this is no time to do anything that could be jarring to a fragile recovery,” said Rep. Gerry Connolly of Virginia, a first-term Democrat…

Another freshman Democrat, Rep. Bobby Bright of Alabama, said he would like to see all the tax cuts extended for two or three years, if lawmakers cannot agree on a more permanent plan…

Several Democratic candidates for Senate have also come out in favor of extending them all, including Robin Carnahan in Missouri and Jack Conway in Kentucky.

Coincidentally, Connolly and Bright are extremely vulnerable this year and Conway and Carnahan trail their opponents in red-state Senate races. Which raises the question: If Congress moves to extend the Bush tax cuts even for the rich, will The One dare veto the bill at this point? Or will he break liberal hearts by going back on another oft-repeated campaign promise? I know which way I’m betting.

Via Greg Hengler, assuming this tax-cutting gambit gets tabled, here’s the super-slick economic message they’ll be running on in two months: Um, we shouldn’t have sold the job-creation program known as the stimulus as … a job-creation program.


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Forget Keynesianism, we’re all supplysiders now, eh Barack?

At least, during election years.

SteveMG on September 2, 2010 at 7:42 PM

So, tax cuts stimulate the economy? Wow. Who would have thought? So, I guess they were wrong and are going to admit it now?

WitchDoctor on September 2, 2010 at 7:43 PM

The stench of fear has finally reached the WH.

CPT. Charles on September 2, 2010 at 7:43 PM

It’s obvious the Dems will try anything to win. Once they are safely re-elected, it will be incrementally reversed. Hope the American people don’t fall for this….

sandee on September 2, 2010 at 7:44 PM

Too little, too late.

John the Libertarian on September 2, 2010 at 7:45 PM

Um, we shouldn’t have sold the job-creation program knows as the stimulus as … a job-creation program.

I think you mean “known” there AP.

On topic: man, you would think it would all be a no-brainer. I’m all for his shifting conservative and anything to help the economy, but politically, is scares me like hell.

carbon_footprint on September 2, 2010 at 7:46 PM

AP, how much do you wanna bet that this is just a trial-balloon/ half-life line to sinking Dems ?? A promise that they’ll never end up doing anyway —OR—it’ll be another bow on top of a crap sandwich of energy legislation cap and tax junk that in 4 months won’t go anywhere anyway.

my 2c

ted c on September 2, 2010 at 7:46 PM

Memo to Newsweek: We’re no longer socialists now.

Good Lt on September 2, 2010 at 7:46 PM

I don’t see Obamao going along with this. Totally against his Cloward-Piven strategy.

Mini-14 on September 2, 2010 at 7:46 PM

I’m also suspicious of the jobs numbers report tomorrow. To much has been made all week how terrible it will be. I fear some book cooking of numbers tomorrow. Of course if that is the case they will be revised upward the following month, just like every previous month so far.

sandee on September 2, 2010 at 7:47 PM

Didn’t we suggest this in lieu of the original stimulus?

lorien1973 on September 2, 2010 at 7:47 PM

Memo to Newsweek: We’re no longer socialists now.

Good Lt on September 2, 2010 at 7:46 PM

Good one!

carbon_footprint on September 2, 2010 at 7:47 PM

Change we can believe in??

heshtesh on September 2, 2010 at 7:47 PM

Oh noes, that would mean admitting that, gulp, Bush was right about tax cuts! Miss me yet?

RedRedRice on September 2, 2010 at 7:47 PM

I’m also suspicious of the jobs numbers report tomorrow. To much has been made all week how terrible it will be. I fear some book cooking of numbers tomorrow. Of course if that is the case they will be revised upward the following month, just like every previous month so far.

sandee on September 2, 2010 at 7:47 PM

Yes, and FoxNews reported earlier today that unemployment benefit requests fell for August.

carbon_footprint on September 2, 2010 at 7:48 PM

They’ll say ANYTHING to stay in office.

OhioCoastie on September 2, 2010 at 7:49 PM

We are AMERICAN VOTERS. Hear us ROAR!

wren on September 2, 2010 at 7:49 PM

Bold and credible, coming from Obama, and the democrats it will be ‘targeted’, meaning only certain favored loyal party members get it. They will try to propagandize those targeted tax cuts, and they will demonize the republicans for opposing them.

Skandia Recluse on September 2, 2010 at 7:50 PM

“Temporary” tax cuts…

mjbrooks3 on September 2, 2010 at 7:50 PM

Too little, too late.

AUINSC on September 2, 2010 at 7:51 PM

Too little, too late.

John the Libertarian on September 2, 2010 at 7:45 PM

Wow, just saw your comment…same wavelength or what?

AUINSC on September 2, 2010 at 7:51 PM

Yup. Let them do tax cuts, get re-elected, then yank them away as fast as they can. I think the trojan horse has gas.

capejasmine on September 2, 2010 at 7:52 PM

I don’t see the democrats extending the Bush tax cuts until after the election for two reasons, one a pretty sick one.

1.) To placate their base.

2.) So businesses expecting a huge tax increase push as much of their sales as possible into Q4 giving the economy a bump (and then crash).

clement on September 2, 2010 at 7:52 PM

Well, he co-opted the entire Bush agenda on the Iraq and Afghanistan wars so it only stands to reason that he would co-opt the Republican agenda for the economy. Does this mean we’re going to start hearing that Obutthead is Republican Lite?!

JonPrichard on September 2, 2010 at 7:52 PM

JFK did it … why not Zero?

Tony737 on September 2, 2010 at 7:53 PM

“Temporary” tax cuts…

mjbrooks3 on September 2, 2010 at 7:50 PM

Do you wanna be the president who raises everyone’s payroll taxes? When people see how much money they’ve been losing, they’d never come back.

lorien1973 on September 2, 2010 at 7:53 PM

I have looked out my window and not one single pig is flying, I don’t think the ‘hot place’ has ice there, and if this bho thinks we will buy another lie all these things will happen when Yellowstone erupts!
L

letget on September 2, 2010 at 7:53 PM

Please I beg you DOTUS……..Continue on your MARXIST path.

Do not listen to compromise. Show us what you are made of.

Stick to your guns (insert bitter clinger joke here).

DON’T DOUBT THE PAPPY Mr. DOTus. ;-)

PappyD61 on September 2, 2010 at 7:54 PM

Barry Lightworker is almost…Reaganesque.

*cough*

Cicero43 on September 2, 2010 at 7:54 PM

Look, Obama and the Dems are in ‘do anything’ mode right now. If anybody thinks he’s given up the great socialist dream, they are morons…then again, they probably voted for him in the first place.

It’s too late though…the deficit is in charge now. Any tax breaks now are an illusion…confiscatory taxes are coming for sure or the US defaults. I guess default will save Obama.

AUINSC on September 2, 2010 at 7:54 PM

Throw this bum and his cronies out of office. They have no intention of cutting taxes or stimulating growth.

They’re Democrats. The party of “tax the rich.” The party of “pay your fair share or something.” The party of “government is your friend, and you will love it.” The party of “spending is no big deal – we’ll just raise taxes.”

They haven’t cut taxes since JFK, and they even want to block that out of their collective memory.

They want to stimulate government growth, which they consider in their warped and ignorant little universe to be “economic growth.”

Good Lt on September 2, 2010 at 7:54 PM

Didn’t we suggest this in lieu of the original stimulus?

lorien1973 on September 2, 2010 at 7:47 PM

The Republicans offered it as an amendment to the original stimulus and it was shot down (don’t recall if the vote on the amendment was party line or not).

txmomof6 on September 2, 2010 at 7:55 PM

What take-back is in the fine print?

pedestrian on September 2, 2010 at 7:55 PM

Even if they did it, it wouldn’t help much. There’s a better way, but an unthinkable one.

Regards,
Ric
(sorry for the shortlink; shameless blog-whoring)

warlocketx on September 2, 2010 at 7:56 PM

The Leader of the Free World is a pathetic weasel. Get on your girl’s bike and ride far away. Don’t forget your little helmet.

Cicero43 on September 2, 2010 at 7:56 PM

Are they extending Bush’s tax relief? They’re the ones who fought to put the sunset provision in the bill – the GOP wanted these cuts to be permanent.

They’re not?

Then this is just another bullsh*t Democrat election year lie because they know they’ve screwed the pooch. Kind of like the entire Obama Campaign was a massive collective lie in 2008.

Good Lt on September 2, 2010 at 7:57 PM

Does this mean we’re going to start hearing that Obutthead is Republican Lite?!

JonPrichard on September 2, 2010 at 7:52 PM

Will he now be forced to return his Nobel prize ?

macncheez on September 2, 2010 at 7:58 PM

Come on Anita, we don’t have to FEEL better we want to factually SEE the economy get better.

fourdeucer on September 2, 2010 at 7:59 PM

“Temporary” tax cuts…

mjbrooks3 on September 2, 2010 at 7:50 PM
Do you wanna be the president who raises everyone’s payroll taxes? When people see how much money they’ve been losing, they’d never come back.

lorien1973 on September 2, 2010 at 7:53 PM

Most likely since this is supposedly targeted at businesses it would be on the portion of payroll taxes that the employer pays not the employee, if so the employee would not feel the difference since they are pretty ignorant of that portion of the taxes and they would probably not notice. Just speculating however.

txmomof6 on September 2, 2010 at 7:59 PM

BTW, Obama just admitted the stimulus did nothing except increase our debt by trillions.

So, yes, he’s officially an idiot.

AUINSC on September 2, 2010 at 7:59 PM

Dick Morris said something like this on O’Reilly last PM but with the caveat that O would cut taxes and reduce spending to meet sort of in the middle. But Morris pointed out(as does AP)that this is probably a no win proposition as cutting spending will force more people onto the government dole in various forms and be self-defeating in the end. We are in such a mess–I think I’ll find some sand an stick my head in and ignore it all.

jeanie on September 2, 2010 at 7:59 PM

Not even going to happen. It would look so painfully desperate: the guy who promised that his stimulus would save the economy and jobs, the same guy who said that Obamacare would save our fiscal problems, the same guy who for years played the same, “tax cuts for the rich” song over and over again, the same guy who to this day still thinks he saved the economy with his policies, is now going to say, “Eh never mind, I should’ve done what Rush Limbaugh suggested back in 09″? He’d look so desperate, I don’t think anyone would take him seriously.

Weight of Glory on September 2, 2010 at 8:00 PM

Throwing things at the electorate wall and hoping something finally sticks.

The Obama Doctrine.

profitsbeard on September 2, 2010 at 8:00 PM

As my grandmother used to say:

“Stop, already, Capice, Capuce, Stop already… eat your zoup”.

Key West Reader on September 2, 2010 at 8:00 PM

Yeah, this will not help them in November. It is too late and besides, they have over-reached so far that the damage was done early this year with ObamaCare. Any tax breaks for aesthetics will largely be ignored by registered GOP and independents and it is not going to fire up the democrat base whatsoever. They are toast.

carbon_footprint on September 2, 2010 at 8:01 PM

Just more confusion and uncertainty to businesses.
“Read my lips”

Electrongod on September 2, 2010 at 8:02 PM

Throwing thingssh*t at the electorate wall and hoping something finally sticks.

The Obama Doctrine.

profitsbeard on September 2, 2010 at 8:00 PM

Key West Reader on September 2, 2010 at 8:02 PM

I’m wondering where crr6, ernesto, sesquewhatever, and others are chiding their Dear Leader for proposing such a radical right-wing economic policy.

They’ve said for years that taxing the sh*t out of everyone is the only way we can prevent the terrorists from winning.

What say you, proud Obamatrons? Where you at? Come out and agree with us that socialism sucks, tax cuts work and Keynesian economics are an EPIC FAILURE.

Good Lt on September 2, 2010 at 8:02 PM

All the GOP would have to do is play this clip, and his little tax cutting fig leaf would be ripped off.

Weight of Glory on September 2, 2010 at 8:03 PM

duuuhhhh….. we didn’t understand how bad the economy was, we don’t understand created or saved, we don’t understand the awesomeness of passing health care, what does all this mean????

I get the distinct impression they are scared sh*tless.

tru2tx on September 2, 2010 at 8:03 PM

Memo to Newsweek: We’re no longer socialists now.

Good Lt on September 2, 2010 at 7:46 PM

We have always been at war with Eurasia.

CurtZHP on September 2, 2010 at 8:03 PM

As a small business owner, I’m holding my breath. I’m not going to make any moves whatsoever. I want confidence in the markets. This confidence will not come through this current Administration, unless it is neutered.

I will not hire, will not grow, will not sell or trade. I will sit on my hands until I KNOW that this ….. whatever it is, is done.

Key West Reader on September 2, 2010 at 8:04 PM

“Temporary tax cuts”

They’ll be around long enough to help a few Donks get elected ….then….they’ll be gone.

around long enough on paper that is…and in speeches, just not in action….

ted c on September 2, 2010 at 8:05 PM

Those tax cuts will go the way of that prison that was to get closed…..

ted c on September 2, 2010 at 8:08 PM

Nobody denies the stumulus worked?

ahem…

Meet Bobmbx Nobody. I deny it worked. I believe that refudiates Dunn’s statement.

BobMbx on September 2, 2010 at 8:10 PM

Dare we call Obama…a TEABAGGER?

Good Lt on September 2, 2010 at 8:11 PM

I’m wondering where crr6, ernesto, sesquewhatever, and others are chiding their Dear Leader for proposing such a radical right-wing economic policy.
Good Lt on September 2, 2010 at 8:02 PM

crr6 is showing the value of this laughable legal and constitutional education (on-line diploma mill education) over in the ‘anchor-babies’ story.

Phil-351 on September 2, 2010 at 8:12 PM

Dare we call Obama…a TEABAGGER?

Good Lt on September 2, 2010 at 8:11 PM

He’s not worthy.

Key West Reader on September 2, 2010 at 8:13 PM

Bammie is the scorpion, America is the turtle.

slickwillie2001 on September 2, 2010 at 8:16 PM

We are the Ones that We Seek.

For cryin out loud.

Key West Reader on September 2, 2010 at 8:17 PM

Feeling Stupid Now?

Hahahaha!!

Key West Reader on September 2, 2010 at 8:18 PM

Charlatan!

Key West Reader on September 2, 2010 at 8:19 PM

He can’t support a tax holiday AND continue to blame Bush and the Republicans for the bad economy that he ‘inherited’. Lefties blame those tax cuts for anything bad that’s happened with the economy over the last two years. If he’s gonna hard-pivot to the center, he might as well stay there. The left will abandon him, especially since the Republicans will (rightly) declare a tax holiday as their victory.

joejm65 on September 2, 2010 at 8:20 PM

Behold!

Key West Reader on September 2, 2010 at 8:21 PM

Socialists pretending to be like conservatives are so stupid. I hope America doesn’t fall for this.

Crux Australis on September 2, 2010 at 8:23 PM

Who believes this story? Please.

Obama will never simply do a payroll tax holiday. He’ll insist that it be paid for. By, oh, I don’t know, maybe raising taxes on the “rich”.

And Congress is not going to extend the Bush tax cuts. It requires action. And they don’t have enough time to write a 2,000 page bill to make it happen.

SlaveDog on September 2, 2010 at 8:25 PM

Temporary tax cuts, another bribe using taxpayers’ money in a long string of such bribes. I suppose he’s hoping to blame Republicans when those “heartless b*st*rds” insist on making it permanent. I guess he really does believe we’re stupid.

Aardvark on September 2, 2010 at 8:32 PM

The great a$$hole tries triangulating…and fails.

AUINSC on September 2, 2010 at 8:32 PM

How’s he going to “pay for tax cuts?”

LOL

This is really rich, people. So much to dip our collective balls in over this desperation-induced reversal.

Good Lt on September 2, 2010 at 8:34 PM

Great news: Left-wing president turns into tax-cutting conservative just before midterms

Great news: The incumbent Mayor, who is also the town drunk, turns into temperance party leader just before city council elections on Sunday.

Tav on September 2, 2010 at 8:35 PM

John Harwood and Reuters tweeted WH denial about any second stimulus. Obama to address nation about tomorrow’s Aug Jobs Report tomorrow and have a presser next week.

jennablan

White House: No second stimulus being considered http://www.reuters.com/article/idUSTRE67O4WF20100902 about 1 hour ago via web

Scott Brown introduced a bill for a payroll tax holiday (for workers too!) last March and the Dems killed it in the Senate.

Jimmy Carter was really big on the payroll tax holiday for employers too I hear. How’d that work out?

Address housing and the consumer balance sheet, payroll tax holiday for workers is a great start, at least a year or peeps will just pay down debt with it and not spend.

But deregulate, stop spending and lower taxes should be the push back from the GOP every time.

ginaswo on September 2, 2010 at 8:38 PM

Good if Barack does it but no one believes him anymore (hopefully) and his ideology (what there is of the poor stuff) will never change. I want the man cashiered.

Sherman1864 on September 2, 2010 at 8:40 PM

/Not original, but someone’s gotta say it

“Boooooooooorsh”

“Let e be clear, I inherited this tax-cut….”

Sir Napsalot on September 2, 2010 at 8:41 PM

I’m wondering where crr6, ernesto, sesquewhatever, and others are chiding their Dear Leader for proposing such a radical right-wing economic policy.

I know some of you guys take what these people write as a serious debate, but I always thought they were manufactured like the Ellie Light affair.

redeye on September 2, 2010 at 8:43 PM

This is also essentially an admission that the Democrats’ stimulus bill is perhaps the most expensive failure of public policy in the history of the nation.

Apart from other Democrat gems like Social Security, the Department of Education (and Energy) and Medicare, I mean.

Good time to be an Obamacrat, no?

I encourage them to keep pushing.

Good Lt on September 2, 2010 at 8:44 PM

Democrats lie in order to win or retain office.
When it comes to taking your money and controlling your lives, they are seething, salivating weasels.

justltl on September 2, 2010 at 8:44 PM

One word: “Gimmick

It’s enough to fool the gullible.

Obama is the quintessential flimflam artist.

DeathB4Tyranny on September 2, 2010 at 8:48 PM

Someone with a working troll account post this story and link the WaPo article on democraticunderground.

Been waiting a couple hours for it but no mention so far.

This is precisely the sort of “betrayal” antics that set off self-immolating Q_Q posts over there.

Khorum on September 2, 2010 at 8:50 PM

Won’t work. Business, large and small, is too spooked. These measures will be seen for what they are – a temporary sop to garner votes.

Case in point: Obamacare is chock full of hidden taxes out the wazoo, and we all know it. If the poison pill within Obamacare stays put, nobody will be fooled. The uncertainty will remain and business will stand pat.

Only fools trust Obama.

marybel on September 2, 2010 at 8:51 PM

But Morris pointed out(as does AP)that this is probably a no win proposition as cutting spending will force more people onto the government dole in various forms and be self-defeating in the end.

jeanie on September 2, 2010 at 7:59 PM

No, putting government on a diet is not self-defeating, but economically the only path to growth.

AshleyTKing on September 2, 2010 at 8:52 PM

This is so pathetic and downright disgusting.

Where is the old Obama with “the difference (between now and 1994) is you got me”, and the triumphant nostril in the air look after ObamaCare?

Sir Napsalot on September 2, 2010 at 8:53 PM

AP, how much do you wanna bet that this is just a trial-balloon…

my 2c

ted c on September 2, 2010 at 7:46 PM

My 2c also.

petefrt on September 2, 2010 at 8:55 PM

Anybody fooled by this? Anybody?

Didn’t think so.

This is the oldest trick in the book as a quick way to get support from the sheeple just before the next round of elections, but no businessperson with two brain cells to rub together will fall for it.

Dark-Star on September 2, 2010 at 8:55 PM

well, what it all means my dear is we, the American people, stupid as you believe us to be, are screwed. And we know it and we know who is responsible.

Willie on September 2, 2010 at 9:07 PM

Won’t work. Business, large and small, is too spooked. These measures will be seen for what they are – a temporary sop to garner votes.

Case in point: Obamacare is chock full of hidden taxes out the wazoo, and we all know it. If the poison pill within Obamacare stays put, nobody will be fooled. The uncertainty will remain and business will stand pat.

Only fools trust Obama.

marybel on September 2, 2010 at 8:51 PM

Nah it really doesn’t matter if it stimulates the economy or not because if he does this, if he REALLY passes a Hayekian stimulus that cuts corporate taxes, he will almost certainly cause an uprising in his base that will make Gibbs’ little gaffe about the “professional left” look like nothing.

I doubt it will diminish any of the uncertainty that have restrained CEOs and small businessmen from hiring new workers (and thus sustaining high unemployment) but I’m absolutely certain this will be the last straw amongst the dedicated fabian socialists that have been waiting for Obama to recreate the New Deal.

Just imagine Krugman’s head exploding if they actually pass this.

Khorum on September 2, 2010 at 9:10 PM

Quick, someone fire up the video editor and put Obama on stage against himself in a fiery debate. Barry Obama (the left side of his mouth) can take on Barrack Hussein Obama (the right side of his mouth) in a debate moderated by Barry Soetoro.

WashingtonsWake on September 2, 2010 at 9:14 PM

Mao Dunn: “Nobody denies that the stimulus worked….”

Pauline Kael: “I don’t know how Nixon could have won; nobody I know voted for him.”

Jaibones on September 2, 2010 at 9:16 PM

Barry is emailing that in from Nigeria.

bayview on September 2, 2010 at 9:20 PM

the junior high economic team developed their job “plan” in about 3 minutes.

they found the job charts from the last 9 recessions, which revealed jobs always had come back by 18 months from the start. since everybody had already lied that the recession started in Q4 2007 (actually, the recession started in Q4 2008), they concluded that jobs would come back by the end of Q1 2009.

That was it. 3 minutes.

That’s your 3.1T government in action.

notagool on September 2, 2010 at 9:29 PM

Message to Obama and other lefties: Never again.

BuckeyeSam on September 2, 2010 at 9:38 PM

I keep telling ya- he is Clenis all over again.

DDT on September 2, 2010 at 9:43 PM

i am more concerned that obama will bomb iran in october than promise to lower taxes.

i think it’;s the only way he cam hold congress and complete the transformation of the usa.

i think transforming us – ruining us – is his chief postmodern leftist goal and that he will do anything to achieve this.

reliapundit on September 2, 2010 at 9:55 PM

As my granddaughter says “poo poo.” The wisdom of the young.

Mason on September 2, 2010 at 10:08 PM

So…”worst economy since the Depression” (they said over, and over, and over again) but they didn’t realize that it was that bad. Right.

Their message appears to be that the stimulus worked, we’re all just to ignorant to understand that.

29Victor on September 2, 2010 at 10:08 PM

The Republicans offered it as an amendment to the original stimulus and it was shot down (don’t recall if the vote on the amendment was party line or not).
txmomof6 on September 2, 2010 at 7:55 PM

Dems the party of No ? Say it isn’t so.
(Sure… no brains, honor, integrity, wisdom .. etc)

pambi on September 2, 2010 at 10:11 PM

Change we can believe in??

heshtesh on September 2, 2010 at 7:47 PM

Ummmmm….no.

Dopenstrange on September 2, 2010 at 10:19 PM

His well creased pants are permanently aflame.

Dhuka on September 2, 2010 at 10:21 PM

Running against Bush gets tougher by the minute.

Barnestormer on September 2, 2010 at 10:35 PM

Comment pages: 1 2