Is Obama planning a $3 trillion income tax increase?

November 17, 2009

Did I just see a trial balloon launched? Over at a Wall Street Journal conference, Christina Romer, chairman of President Obama’s Council of Economic Advisers had this to say about deficit reduction:

But the chairman of the president’s Council of Economic Advisers admitted that health reform and a growing economy isn’t enough to bring down the deficit. She did mention one other place that revenue could come from: letting the Bush tax cuts expire.

Me: Since Obama already wants to get rid of the income and capital gains tax cuts for wealthier Americans that expire at the end of 2010, clearly what Romer is referring to is the rest of the 2001 and 2003 Bush tax cuts. Letting all the 2001 cuts — rate reductions, child tax credit marriage penalty relief — expire would raise tax revenues by $2.5 trillion through 2019. (These CBO numbers assume no negative economic feedback impact from higher taxes.) And letting the 2003 tax cuts on capital gains and dividends expire would be tantamount to a $350 billion tax increase through 2019. And none of this includes possible plans for a VAT that could raise $400 billion a year more to close the huge projected gap — maybe 7 percentage points — between spending as a percentage of GDP and revenues as a percentage of GDP.

4 comments

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One of Obama’s most memorable campaign promises was to not raise taxes on people making less than $250,000 a year. Despite having taxes in the health care plan, the administration is quick to say they are not tax increases. I think he would let all of the tax cuts expire if it was a day after winning re-election, but not before.

Posted by Brad Templeman | Report as abusive

[...] Administration prepares the ground for a massive tax increase James Pethokoukis has the details: Did I just see a trail balloon launched? Over at a Wall Street Journal conference, [...]

Posted by Obama Administration prepares the ground for a massive tax increase « The right-wing liberal | Report as abusive

[...] now the REALLY bad news, a rumoured 3 TRILLION dollar tax hike: …Over at a Wall Street Journal conference, Christina Romer, chairman of President Obama’s [...]

Posted by Steny Hoyer: House to pass Jobs Bill by Dec 18th, to include further unemployment extension, COBRA addition and infrastructure & Is Obama planning a 3 trillion dollar tax increase? « Moderate in the Middle | Report as abusive

[...] now the REALLY bad news, a rumoured 3 TRILLION dollar tax hike: …Over at a Wall Street Journal conference, Christina Romer, chairman of President Obama’s [...]

Posted by Steny Hoyer: House to pass Jobs Bill by Dec 18th, to include further unemployment extension, COBRA addition and infrastructure & Is Obama planning a 3 trillion dollar tax increase?, plus the rationing begins, women first « Moderate in the Middle | Report as abusive

[...] original here:  James Pethokoukis » Blog Archive » Is Obama planning a $3 trillion … This entry is filed under Income. You can follow any responses to this entry through the RSS 2.0 [...]

Posted by All In One Information » James Pethokoukis » Blog Archive » Is Obama planning a $3 trillion … | Report as abusive

[...] and your kids each individually owe, but I honestly wouldn’t recommend it. Instead, read this nifty catch by James Pethokoukis of murmurs within the administration about repealing the Bush tax cuts — [...]

Posted by Hot Air » Blog Archive » Grim milestone: National debt now tops … $12 trillion | Report as abusive

[...] you and your kids each individually owe, but I honestly wouldn’t recommend it. Instead, read this nifty catch by James Pethokoukis of murmurs within the administration about repealing the Bush tax cuts — all [...]

Posted by Grim milestone: National debt now tops … $12 trillion – Conservative Viewpoint Blog | Report as abusive

“(These CBO numbers assume no negative economic feedback impact from higher taxes.)”

Oh, yeah? Buncha economic idiots.

Increase taxes like this and watch me and millions of others tell Obama to stuff it, as we stop generating taxable activity.

I can coast for a couple years. Can Obama’s revenues take the hit?

Posted by Chester White | Report as abusive

[...] a lot of zeroes. Hold on to your wallets! The tax hikes are coming. Who knows, maybe the 47% of Americans who pay no federal income tax will finally have to start [...]

Posted by National Debt Hits $12,000,000,000,000.000 | The Lonely Conservative | Report as abusive

[...] pm 11/17/209) – For more reading, head on over to Hot Air, where Allahpundit caught a whiff of the ultimate expiration date/red lips moment trial balloon of repealing every last Bush tax cut which, with all the other non-PlaceboCare tax hikes, would [...]

Posted by No Runny Eggs » Blog Archive » It’s over 9,00…er, 1,000,00…er, $12,000,000,000,000 | Report as abusive

[...] tactic that appears superficially to be a solution. Let all the Bush tax cuts expire. Some commentators already perceive the administration to be floating trial balloons of this type for a $3 trillion tax hike over ten years. I have been [...]

Posted by Token Conservative · Are trillions in deficits and/or trillions in tax hikes in Mr. Obama’s vision of America’s future? | Report as abusive

[...] Original post:  James Pethokoukis » Blog Archive » Is Obama planning a $3 trillion … [...]

Posted by James Pethokoukis » Blog Archive » Is Obama planning a $3 trillion … : PlanetTalk.net – Learn the truth , no more lies | Report as abusive

[...] the whole story here: James Pethokoukis aggregated by [...]

Posted by James Pethokoukis » Blog Archive » Is Obama planning a $3 trillion … | Report as abusive

[...] Obama planning on raising taxes by $3tn or more? James Pethokoukis lays it out: Since Obama already wants to get rid of the income and capital gains tax cuts for wealthier [...]

Posted by Scary | Report as abusive

[...] Sounds like a great time to start another deficit intense program, like health care reform.  How is he going to pay for it?  Taxes on you. [...]

Posted by National Debt Now Tops $12 Trillion « Inzax | Report as abusive

Weds. morning links…

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Is Obama planning a $3 trillion income tax increase?
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Posted by Maggie’s Farm | Report as abusive

[...] you owe Uncle Sam because Uncle Sam is a drunken sailor who has no damn self control or respect for your hard earned money and your real [...]

Posted by The Strata-Sphere » Liberal Spending Has Bankrupt This Nation | Report as abusive

[...] James Pethokoukas thinks he’s picked up on how they plan on doing that – or at least the trial balloon they’ve launched concerning their idea to see how well it flies. He saw this is the Wall Street Journal. But the chairman of the president’s Council of Economic Advisers admitted that health reform and a growing economy isn’t enough to bring down the deficit. She did mention one other place that revenue could come from: letting the Bush tax cuts expire. [...]

Posted by Debt Tops 12 Trillion – Can A Substantial Tax Increase Be Far Behind? | QandO | Report as abusive

[...] When it stops?  Nobody knows.” As Obama spends us into oblivion, is Obama now planning on a $3 trillion tax increase? Share [...]

Posted by Obama’s Hope & Change … US National Debt Hits Record High over $12 Trillion … Typical Tax & Spend Liberal | Scared Monkeys | Report as abusive

[...] via James Pethokoukis » Blog Archive » Is Obama planning a $3 trillion income tax increase? | Blogs | . [...]

Posted by Looney Left :: James Pethokoukis: Is Obama planning a $3 trillion income tax increase? | Blogs | :: http://216.98.236.20:16080/~test/looneyleft | Report as abusive

If taxes go up in 2010, it will be because of a law written by a Republican Congress and signed by George Bush. Let’s not let that fact get in the way of blaming Obama and the Democrats.

Posted by Blame the Democrats! | Report as abusive

[...] Go here to read the rest: James Pethokoukis » Blog Archive » Is Obama planning a $3 trillion … [...]

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Posted by FamilyFoundationBlog.com » Blog Archive » Virginia News Stand: November 18, 2009 | Report as abusive

[...] Welcome to the horrific world of a Tax & Spend socialist. As Say Anything says, “Up and up it goes.  When it stops?  Nobody knows.” As Obama spends us into oblivion, is Obama now planning on a $3 trillion tax increase? [...]

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[...] James Pethokoukis: Since Obama already wants to get rid of the income and capital gains tax cuts for wealthier [...]

Posted by A Bucket of Cold Water » Peer Marketing Group | Report as abusive

[...] the past year we have seen unemployment rise to over 10% (and it’s getting worse), incredible tax increases, we’ve seen a hostile takeover of healthcare system by what will result (if it passes) in [...]

Posted by A Time for Choosing « Southern Republican Leadership Conference 2010 | Report as abusive

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