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.

[...] 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, [...]

[...] 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 [...]

[...] 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 [...]

[...] 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 [...]

[...] 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 — [...]

[...] 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 [...]

“(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 [...]

[...] 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 [...]

[...] 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 [...]

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

[...] 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 [...]

[...] 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. [...]

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[...] 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 [...]

[...] 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. [...]

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

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

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 … [...]

[...] Is Obama planning a $3 trillion income tax increase? [...]

[...] 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? [...]

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

[...] 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 [...]

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