Former Obama Budget Advisor Blasts Plan to Let Bush Tax Cuts Expire

As press secretary Robert Gibbs noted this morning, The White House‘s official position is that today’s poor economy doesn’t hurt rich people, and thus Bush-era tax cuts for higher earners don’t need to be extended.

On the contrary, writes former Obama budget advisor Peter Orszag.  In his new role as New York Times columnist, Orszag used his first piece to slam the administration’s plan to allow tax rates to go up as the Bush tax cuts expire, and instead calls for a two-year extension of all Bush tax cuts — including those for the nation’s most wealthy.

“[T]he best approach is a compromise: extend the tax cuts for two years and then end them altogether,” he wrote. “Ideally only the middle-class tax cuts would be continued for now. Getting a deal in Congress, though, may require keeping the high-income tax cuts, too. And that would still be worth it.”

Comments (46)

  • jkten57
    Posted on September 14, 2010 at 8:10pm

    For G-Bags, As a prior Pres. said ” Ask NOT what your country can do for you, BUT what you can do for your COUNTRY ” ! As a parent you make sacrifices for your children in the hopes that they will have a better life.
    As a Vietnam vet.and the youngest son of a DOUBLE amputee WW II vet. I know a little bit about “CUTS” and as a Vet. I know that you have to make SACRIFICES for the good of your country!,
    SO….
    GET A LIFE !!!!

    Report Post » jkten57  
  • Arlo
    Posted on September 8, 2010 at 7:57pm

    Danlingbags,

    Please, at least get your democratic talking points correct. It’s privatizing social security and cutting Medicare benefits. You should know this by now. When all fails, scare the old people! Please keep in mind that the Tea Party consists mainly of “old white retired people”

    Report Post »  
  • JeffW65
    Posted on September 8, 2010 at 3:47pm

    @Docrow

    Ref. the link you gave for flat tax.

    Actually it being old might be a benefit. Does anyone know how the economies that have converted to flat tax are doing? Has it improved their economy? More importantly, has it improved their quality of life? Are there any follow up reports?

    Report Post » JeffW65  
  • AChristian
    Posted on September 8, 2010 at 3:44pm

    A Gnome by any other nom de plume is still a Noam. Chomsky was/is a liberal thinking hack.
    If I am incorrect then Noam wouldn’t be a spokesman for all things Regressive. But, I am right & he is
    a hack.

    Your hero? LMAOAY!

    Report Post »  
  • Reagan was Right
    Posted on September 8, 2010 at 1:06pm

    There is a new web site for the Conservative Right.

    http://rightnetwork.com/

    Check it out.

    Report Post » Reagan was Right  
  • Bill Wallace
    Posted on September 8, 2010 at 1:04pm

    Danglingbats…just a clue. Over on the left of the keyboard is something called “Caps Lock”. Press it. Your typing is like listening to an hour of Michael Savage. Any cogent point you may have is lost among the screaming.

    The age of retirement will rise. It must. Retiring at 65 is great when life expectency was 66. Not so good when it is 85+. Hand in hand with this is a rise in SS benefits.

    Conservatives have always been big supporters of the military, so the VA benefits wouldn’t be cut.

    For medicare, I can assure you that you have never had to deal with medicare on any level. I have. Privatization is the best thing for it. There are so many rules and red tape…mediare cannot get anything done.

    Farm subsidies…another area which you have no background. Should the government pay farmers to NOT grow things? Should they dictate what farms can grow, or how much? I don’t think so. Besides, farms today are owned by big corporations. I would think you, the uber-left, would be all vim and vigor against giving big corporations tax dollars.

    Report Post »  
  • rfycom
    Posted on September 8, 2010 at 12:06pm

    I had to go get the facts folks. Check out this link: http://www.payscale.com/research/US/Job=Owner_%2F_Operator,_Small_Business/Salary

    The vast majority of small business owners make no where close to $250K. Running a small business is a lot like running on the edge of failure everyday. Things like making payroll, paying suppliers, etc. Don’t include us in your assumptions that this tax cut for the reach is going to clobber the small business man. It ain’t true. Check the facts.

    Report Post »  
  • stringjr
    Posted on September 8, 2010 at 11:42am

    It’s not about weather the rich are ammuned to the current economic climate but wether or not they are willing to invest in the current economy. If your money is best saved for a more profitable day then you will save and wait for it. If the taxes are cut or sustained at a long term lower rate this will encourage more long term investment and create long term jobs and opportunities for us all. Punishing the success of others is petty and only comes full circle and bites us back. As we are all experiencing right now.

    Report Post » stringjr  
    • rfycom
      Posted on September 8, 2010 at 12:08pm

      Rich have had the tax cuts for 8 years now. What happened? It does not trickle down.

      Report Post »  
  • rfycom
    Posted on September 8, 2010 at 11:10am

    You all are confused. This is not a right versus left issue. This is not a liberal versus conservative issue any more. This is a class issue. This is a poor versus rich issue. The rich may have the dollars but the poor have the numbers. If the poor continue to be pushed they will rise and the numbers will defeat the dollars. Scary? Yes.

    Not all poor people are lazy, dumb, or sinners. Now that there isn’t a middle class, there are far more poor then every before.

    Clear your mind and the rest will follow. If you vote against your own best interest, you are a fool.

    Here is what we need. We need a Beck or a Rush, BUT I say BUT!!!!!!!!!!!! We need one that isn’t profiting off their efforts. Do you really believe Beck and Rush are working for your best interest if you make less then $200K a year? Nonsense!

    Be careful of those false profits.

     
  • anonnymous
    Posted on September 7, 2010 at 10:30pm

    How dare he! Taxing the rich!! It’s like a modern Robin Hood- he should be arrested for vigilantism.

    Report Post »  
  • ashkatsar
    Posted on September 7, 2010 at 8:51pm

    I know Gibb’s has not worked for a poor person, because he talk’s to much (CZAR).

    Report Post »  
  • Polybius
    Posted on September 7, 2010 at 8:01pm

    I wonder if Robert Gibbs has ever worked for a poor person?

    Report Post » Polybius  
  • opticalfuel
    Posted on September 7, 2010 at 7:55pm

    LOWER taxes leads to GREATER employment through REINVESTMENT which leads to MORE people to tax which results in HIGHER REVENUES to the IRS, which leads to LOWER DEFICITS. (IF any effort AT ALL is given to lowering SPENDING).

    Why is that so hard for the Obama Administration and CONGRESS to understand???? It’s been proven over and over to be true. It‘s not that they don’t understand it. They just want the MONEY NOW! They don’t want to allow us freedom and independence. It’s all about CONTROL of our lives.

    Also they are not able to hear the truth because they have rejected God. God is Truth.

    Report Post » Progressive-ANTIdote  
  • sccm52
    Posted on September 7, 2010 at 7:35pm

    The Times! I hate the Times! Who ever reads the Times? Since Orszag said that, Obama will do the opposite now, Thanks TIME!!!

    Report Post »  
  • magicboop
    Posted on September 7, 2010 at 7:21pm

    A flat tax is the only way to go. AND TERM LIMITS!!!!!!!!

    Report Post » magicboop  
  • chuchu12
    Posted on September 7, 2010 at 6:40pm

    If this simple plan was enacted our economy would begin to recover in weeks

    If congress and the president were to have a window period of 0% capital gains tax on any real estate purchased it would get the investors to let loose of some of the trillions of dollars they are sitting on and buy property which will create jobs.

    * This should only be allowed for properties bought from the day it is passed moving forward for a window period of 3 months or 6 months or whatever. We should then analyze it and adjust the window as necessary. It should not be used for properties already owned because that would flood the market, we want people to want to buy instead of sell to create demand again so that prices will stabilize and consumers will begin to have confidence in their homes and begin to spend again to support the economy and create jobs.

    * This should qualify for any buyer of any property whether it be an investment, owner occupied or commercial. The goal is to get the big investors with all their cash on the sidelines to start buying to stimulate the recovery and also to make it widespread so to have a quick effect. This will bring quick money into the treasury by quickly creating jobs and consumer confidence.

    * The new property purchased should have no restrictions on when you sell it, if sold in 1 day, 1 year 10 years or 100 years it should be exempt from capital gains tax. This will be the quickest way to incentivize buyers, remember this is just a window period and we can adjust the window anytime either to avoid over heating or lack of desired results.

    The largest commodity held by Americans is real estate and over the last 3 years as their home values dropped they lost confidence in their future. If home prices stabilize and slowly begin to increase again people will start regaining confidence, they will also hire builders, painters, landscapers, plumbers, Realtors, loan and mortgage officers etc. They will also spend on vacations, restaurants, new cars, etc. In my opinion, one mistake the current administration did was the cash for clunkers, why in the world would we incentivise people to put a monkey on their back in the form of a higher payment to purchase a depreciating asset when we could incentivise them to purchase property that typically can go up in value and then they would buy the car on their own along with other goods and services?

    Another great reason to put the 0% window on the cap gains is because for all practical purposes there is no cap gains tax being collected now anyway because nobody is selling at a profit so there is little to lose and much to gain.

    Also by doing this foreclosures will cease quickly and banks will begin lending again. Banks will realize that values have stabilized and not be so fearful of lending.

    Sure, this will probably help the professional investor but most importantly it will create jobs for the guy who has to put food on the table for his children. We need to get the big money that the investors have buried back into the system and real estate is the best way because it will create a snowball effect of jobs.

    Report Post »  
  • Red Blooded
    Posted on September 7, 2010 at 6:28pm

    Ok look, we need to dissolve the IRS permanently and institute a VAT tax (value added tax) to all goods. If someone makes 60k per year, then they need and deserve every cent of their pay. It should be up to the consumer to determine where his/her taxes will be spent on the items they deem to satisfy their needs or wants….

    Report Post » Red Blooded  
    • jetmech568
      Posted on September 8, 2010 at 12:18am

      Wouldn’t a VAT make everything cost twice as much?

      Report Post »  
    • Docrow
      Posted on September 8, 2010 at 10:35am

      I would like to see a flat tax, something like what Hungary is doing.

      Report Post » Docrow  
  • Rickfromillinois
    Posted on September 7, 2010 at 6:23pm

    A majority of the small business owners fall into the over $250,000 a year since they file their business taxes under personal income. Most jobs in the U.S. are with small businesses. Sooooo if you raise the taxes on those making more then $250,000 a year you will raise the taxes on most of the small business owners in the U.S. If you raise the taxes on most of the small business owners they will hire fewer people. Since a majority of the jobs come from small businesses, and if taxes are raised on small business owners there will be fewer jobs Perhaps raising taxes on the so-called “rich” might not be such a good idea. I don’t think I can make it much simpler then that.

    Report Post » Rickfromillinois  
    • GnomeChomsky
      Posted on September 7, 2010 at 7:34pm

      A reasoned response, thank you Rick. Here is where the problem lies there though. Lets say Small Business Owner X claims exactly $250k putting him in the group whose tax cuts have expired. Now that $250k is his income/profit not the gross earnings of said small business, his taxes would then go up approx. $6k-$8k a year. You say because of that loss in income they would hire fewer people, presumably because it would cut their, already $6-8k lower, profit more and therefore they would have no incentive to hire? But what youre not taking into account is if owner X was planning on hiring in the first place he must have believed demand for his services was greater than his current labor force could accommodate and that the cost of a new employee would be offset by the greater revenues the addition of that employee would generate. The bottom line is SBO’s arent going to hire unless their business needs require it, an at most 4.5% increase in taxes is irrelevant.

      Report Post »  
    • jetmech568
      Posted on September 8, 2010 at 12:16am

      It’s not good to punish people who are successful they are the ones giving jobs for the people that need them. Take a hard look at California to see what taxing the rich does for the state. Same thing will happen to the USA. It is not greed just smart to go where it is better to do business. Lower the taxes on the rich that hire/create jobs and the taxes cut will be made up with the people that are working paying their taxes.

      Report Post »  
    • rfycom
      Posted on September 8, 2010 at 11:13am

      Small business owner for 30 years here. I wish I could have a year a make $250K. I also know about a 1000 other small business who have never paid them self that much.

      Report Post »  
  • BQI
    Posted on September 7, 2010 at 6:21pm

    The House of Obama, falling like dominos.

    Report Post » BQI  
  • GnomeChomsky
    Posted on September 7, 2010 at 6:14pm

    Its not exactly a ringing endorsement of extending the cuts for the wealthiest Americans is it? he is just saying that the party of no would likely vote no for any extension that didnt include the high income tax cuts. come on the blaze, talk about hyperbole.

    Report Post »  
    • GnomeChomsky
      Posted on September 7, 2010 at 6:27pm

      After reading the op-ed piece a couple more times and then returning to this article it is even clearer what a hatchet job this is. Orszag didnt “blast” or “slam” anything except maybe the idea of making the cuts permanent.

      Report Post »  
  • GnomeChomsky
    Posted on September 7, 2010 at 6:08pm

    Uhhh, the intention was always to extend the cuts for the middle class and only allow the cuts for those making over $250k to expire.

    Report Post »  
  • Large Eagle
    Posted on September 7, 2010 at 5:53pm

    The Obama Deception has run it’s course – Praise GOD – Signs and wonders will follow. At first I thought this was orchestrated but I remembered the prophets said: All things work together for good – for those who Love the LORD.

    Report Post »  
  • rocktruth
    Posted on September 7, 2010 at 5:51pm

    Like we wont have a bad economy in two years? The tax cuts must stay permanent. Especially for those investing in the U.S Job’s & manufacturing. Support American Jobs!

    Report Post » rocktruth  
    • GnomeChomsky
      Posted on September 7, 2010 at 6:19pm

      Making all the tax cuts permanent would expand the deficit by more than $3 trillion over the next decade.

      Report Post »  
    • JMS
      Posted on September 7, 2010 at 6:33pm

      Hey Gnomechomsky, the White House called. You’re on the wrong site again. You’re suppose to be over on Politico. I’m covering this site today. God your a knucklehead. After all, you’re getting taxpayer money to be a hack on conservative sites. You would think you could at least figure out the correct one to be on.

      Report Post »  
    • pscully17
      Posted on September 7, 2010 at 6:35pm

      whats the Purposes of Taxes anyway? To pay for federal Salaries and Services– except in this scenario, Obamas COLLECTIVE HIRING BONANZA in the Governement sector is EATING UP ALL THE TAX MONEY!! ( for next 3 generations at least) So, Instead of Reducing Gov,t to match the balance of tax revenues, hes expanding it exponentially to force poverty on 90 pct of the country!! ITS GOTTA STOP!! IMPEACH OBAMA NOW before we have to resort to Violence!!

       
    • GnomeChomsky
      Posted on September 7, 2010 at 6:42pm

      JMS, So anyone with a differing opinion who visits the site is on the white house payroll? All I’ve done is make a comment that is taken directly from the op ed piece that this site is referring to.

      Report Post »  
    • rocktruth
      Posted on September 7, 2010 at 7:35pm

      Isn’t the $3 trillion over the next decade caused by over spending? Which comes from the baby boomers new health care system + retirement entitlements.

      How about if we cut government spending directly proportional to tax increases? For every tax dollar the government takes, they would need to cut the same amount in spending.

      We should give more tax cut’s to American manufacturing, but only if they use the savings to increase competition and expand production resulting in job creation.

      Report Post » rocktruth  
  • Contrarian51
    Posted on September 7, 2010 at 5:50pm

    Gee, where was this Captain Courageous before he quit?

    Report Post »  
    • opticalfuel
      Posted on September 7, 2010 at 7:50pm

      For those of you that watch Sponge Bob… this phenomenon is normally caused by the ‘Orb of confusion’ which renders everyone with a mile radius of the Obama Administration totally un-able to form policy which may actually lead to economic prosperity. Someone has to switch that sucker off – and QUICK!!!!!!

      Report Post » Progressive-ANTIdote  
    • danglingbags
      Posted on September 7, 2010 at 9:20pm

      I HAVE A QUESTION REGARDING SPENDING AND DEFICITS.

      WHY ARE YOU NOT DEMANDING FROM THE REPUBLICANS YOU INTEND TO VOTE FOR ON SPECIFICS THAT THEY WANT TO CUT. IT IS OBVIOUS THAT SPENDING NEEDS TO BE CUT, BUT THEY ARE NOT TELLING YOU WHAT THEY WANT TO CUT. THEY ARE NOT WILLING TO TELL YOU WHAT TOUGH DECISIONS THEY ARE WILLING TO MAKE.

      HERE IS A CLUE…

      *THEY WANT TO ELIMINATE FARM SUBSIDIES

      *CUT VETERANS BENEFITS

      *RAISE THE AGE IN WHICH YOU CAN COLLECT SOCIAL SECURITY

      *PRIVATIZE MEDICARE

      YOU DO NOT HAVE TO BELIEVE ME…ASK THE CANDIDATE…THEY WILL NOT GIVE YOU A STRAIGHT ANSWER ON THE ABOVE AND THAT SHOULD WORRY YOU.

      Report Post »  
    • Peters
      Posted on September 7, 2010 at 9:55pm

      In the words of Obama himself, ‘let me be clear’ to the innocent young polite liberals perusing this site, aside from the agitators that appear below in this thread, take notice of the manner in which your advocates, these agitators argue their liberal logic . . . Are you starting to notice that it just doesn’t add up . . . liberalism that is?

      In contrast, Conservatives and Tea Party members alike do not just despise liberals for the sake of despising, as you probably have been told. What is despised are liberal intentions to control the world in which we live; they want to control people with government, to abuse freedoms and liberties and arrest the individual American spirit away from the people, to separate the people from their constitution.

      To all the young liberals visiting here, as you consider being a liberal or not, as you search for your identity as a young American, think about the contradictions that your affiliations with liberalism will require you to make along the way. Consider having to make compromises to your character when you have to praise the likes of liberal thought, like the characters that post here fighting for the liberal causes in the manner in which they customarily do, of their thoughts that they profess.

      Take notice there is no sense of decency, no sense of truth or honesty coming from your leadership; nor is there any desire to find common ground and understanding. There are only deceptions and aggressions with the infiltration of liberal negativity into this environment of optimism, injected into the national conversation that Tea Party members and conservatives engage in, the conversations that takes place here . . . You can simply judge that for yourself.

      But along the way, take careful notice that the conversations that take place here are for young people like you, sons and daughters, for the simple purposes of making sure that you have a roof over your head, food on your table, shoes on your feet and safe borders along our shores. Take note that probably as you age, as you come closer to understanding your father and your mother, your grandfather and grandmother, of their conversations and demonstrations of principles and values, the ones liberals want you to step on and denounce, take note that those things were learned for you, for your preservation, for your children’s children and on.

      And then, think of the magnitude of the life decision that it is to travel by way of the liberal . . . You are so young; you will have to be forever angry.

      Report Post »  
    • USAMama
      Posted on September 7, 2010 at 10:30pm

      Sorry Danglingbags, but I think your confused. It’s the liberals who want the free ride on the backs of the hard working tax payees. Tea Party Patriots are only asking the gov’t to quit taking the money they worked hard for an giving it away as they see fit. Do you think those CEO’s got that job on their first day? Most start at the bottom making minimum wage and work their butts off to get there!!

      Report Post » USAMama  
    • Oversat
      Posted on September 7, 2010 at 10:47pm

      This reply is actually for Danglingbags. Apparently, you have been grossly misinformed on the Tea Party, haven’t exactly thought through or researched your comments about them yourself, or just really want to get your point across even if it means being blatantly wrong (by the way, Caps Lock – not neccessary all the time). I myself am by no means a Tea Partiest, a Republican, or any other grouping of polical ideals or isms. I simply think for myself, read, research, and compare against history. In reality, I am your average American citizen, with your average education (HS diploma and some college), and an average job (SSG in the US Army Infantry). So let’s take a quick look at your talking points:
      1) “They want to eliminate farm subsidies” – “Direct payment subsidies are provided without regard to the economic need of the recipients or the financial condition of the farm economy. Established in 1996, direct payments were originally meant to wean farmers off traditional subsidies that are triggered during periods of low prices for corn, wheat, soybeans, cotton, rice, and other crops.” This quote comes from the EWG Farm Subsidy Database website. If it is not needed, get rid of it. $20B/year go to Farm Subsidies.
      2) “Cut veterans benefits” – This I do not agree with. But as with any of your points, I haven’t heard that this is actually the “plan”, nor does it really seem like something a conservative would do. But when it comes to politicians, anything is possible. Personally, I think veterans deserve a little more. I don’t believe in free rides for everyone, but for those that have gone just a little further for the freedom of our nation, we should go just a little further for them.
      3) “Raise the age in which you can collect social security” – Not good enough. Let’s get rid of it completely. Social Security is nothing more than a pyramid scheme, designed for failure at its outset (New Deal, FDR). Instead, let’s get back to our family values and, dare I say it, religious values, and even the moral and ethical values that the nation was founded on. Then, the elderly and the impoverished would have family, church, synagogue, mosque, coven, neighboors, or whatever to help them through. Here’s another thought: let’s stop convincing each other that we should live on credit and maybe save some money of our own.
      4) “Privatize Medicare” – Yet another pyramid scheme. Privatizing Medicare would at least eliminate the threat of the Medicare system collapsing and keep it going. Whether it is for the better or not, we’ll just have to see. Privatized health care certainly has had its problems, but it has also led to the competetiveness that drives our nation’s leading innovation in the medical field. Implementation of this is the key, however, to whether it would succeed or fail.
      Lastly, no one but right-wing morons and a handful of left-wing incumbents have been playing the race card. I believe that a very important point has been missed here: People from both sides may shout “racism”, but to argue it at all from any point is to exacerbate it. Am I the only person in this nation who DOESN’T see color when they meet their fellow American in the street? It would never occur to me to count how many blacks were in a Tea Party speach versus how many whites attended Rev. Al Sharpton’s MLK Day rally in Washington DC. And to propose legislation that seperates us based on race, is still racism. Affirmative action – racism. That is one example. In the words of George Orwell, “All animals are equal, but some animals are more equal than others.” This is what we do by creating such legislation.
      Personally, I believe Democrats and Republicans should take a break during the mid-terms. Perhaps, we should just elect individuals into office who will simply vote in cogress what their constituents want. Wouldn’t that be novel? It would be like living in a Democratic Republic. I think I read about one at some point in my life…where the people stood together to form a more perfect union…

      Report Post » Oversat  

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