Business

‘Tax Bombshell’: If Re-Elected, Would President Obama Raise Taxes For Middle Class?

Posted on March 2, 2012 at 10:56pm by Becket Adams
Print »
Email »

Let’s say President Obama soundly defeats the GOP in November and he hunkers down for a second term. If that happens, some critics think he will allow all of the Bush tax cuts to expire. All of them. Arguably, this would lead to a increase in taxes on the middle class.

Noam Scheiber, author of The Escape Artists: How Obama’s Team Fumbled the Recovery, thinks there’s reason enough to suspect the president would allow this to happen.

What’s even more unpleasant than the thought of tax increases during this time of economic stagnation is the fact that the White House originally floated this idea back in 2009.

According to Scheiber (via The Daily Beast):

In the fall of 2009, Obama’s chief congressional lobbyist, Phil Schiliro, touted a clever idea for dealing with the tax cuts: introduce a bill that would extend the middle-class cuts for two years while allowing the upper-income portions to expire. After two years, the middle-class cuts would also expire unless Congress paid for them with offsetting savings or tax increases.
…
By November 2009, Orszag [the former Director of the Office of Management and Budget] had become so fond of the idea that he insisted on presenting it to the president in the Oval Office. Orszag’s fellow wonks were cool to the plan, having heard him and Schiliro sing its praises repeatedly. But the administration’s chief wonk—Barack Obama—was intrigued. He asked a series of encouraging questions about how the proposal would work. According to two sources in the room, he was taken with both the political merits—that is, putting Republicans on the defensive—and the policy rationale of lopping trillions off the deficit. He gave no indication that he was troubled by the plan’s most explosive feature: that it would likely break a central campaign promise—not raising taxes on the middle class—one Republicans would surely wrap around his neck with populist glee.

So let’s say President Obama is reelected. What happens when these tax cuts come up again? He doesn’t have to fear losing an election. He doesn’t need to worry about appealing to moderates. Simply put, “the chance to let the Bush tax cuts lapse may simply be too tempting to pass up,” Scheiber writes.

And the implications could be devastating.

“Were this to happen, 2013 really could be the brutal year of fiscal contraction people have been fearing,” writes Business Insider’s Joe Weisenthal.

“And even if nothing happens, it’s depressing to think that in 2009, when things were going horribly for the economy, there was a serious discussion of tax hikes and deficit reduction at the highest levels of government.”

Back to The Blaze »

Comments (94)

football lady
Posted on March 3, 2012 at 8:52am
Anybody But Obama!
Report Post » Log in to ReplyReply
- mrtinbender
  Posted on March 3, 2012 at 10:48am
  rite on
  Report Post »
Gonzo
Posted on March 3, 2012 at 8:07am
Is the Pope Catholic?
Report Post » Log in to ReplyReply
- HKS
  Posted on March 3, 2012 at 8:18am
  He is doing that right now and calling it fees in every sector of government.
  Report Post »
- football lady
  Posted on March 3, 2012 at 8:51am
  No doubt about it. He will raise taxes, not that he hasn’t already.
  Report Post »
- turkey13
  Posted on March 3, 2012 at 10:24am
  It’s to late – no matter who wins the Social Security system will need to be addressed. SS was designed for all to pay on a sliding scale – people making over a million bucks should not have been included. At some point the Government started including young unwed mothers and then gave more for more babies and then we excluded all folks making over $30,000 from paying any thing. I’v found out in my life that if I write more checks out than I have money they start to bounce.
  Report Post »
- Better Dead Than Red
  Posted on March 3, 2012 at 2:23pm
  Glenn, you addressed this in “Broke”..
  
  They already have raised taxes for the middle class.. YEARS ago…
  It’s called the VAT taxes!!
  Report Post »
- Freedom from liberals
  Posted on March 3, 2012 at 4:34pm
  Game of connect the dots Chicag/Illinois politics
  Lou Dobbs; 2009. Over 1,000 politicians from Illinois have been jailed
  City gov’t points to a political culture thats been in place for over 100 years
  Under machine style rule, those in power would hand out contracts, jobs and social services in exchange for political support
  In exchange for political support ethnicities would be given virtual fiefdoms within city govts.
  5 governors have been indicted, 4 convicted. 3 Dems, 1 Repub
  I Dem Chicago mayor convicted, 4 other Dem mayors investigated(many of their top aides were convicted)
  Last Republican mayor, 1931.
  Obama’s background and political roots;20+ years of Chicago politics and corruption
  Obama’s staff with Chicago political background; Emanuel, Axelrod, Summer, Gibbs, Jarrett
  Corruption, corruption, corruption. We’ve been conned
  Report Post »
- Freedom from liberals
  Posted on March 3, 2012 at 5:44pm
  BHO aka Barry Soetoro is the pied piper and he is leading us off the cliff. If you don’t believe me watch this YOU Tube video of the pied piper. It is hilarious but yet so true
  http://www.youtube.com/watch?v=zrXTQROViec
  Report Post »
- Grey Eagle
  Posted on March 3, 2012 at 10:15pm
  There simply would be no stopping Obama in the final destruction of this country if voters are stupid enough to re-elect this jerk.
  Report Post »
- Noonien_Soong
  Posted on March 4, 2012 at 3:55am
  If, that’s if Obama does try to raise raises in his second term, if he gets re-elected, he might raise the taxes by a small degree, let’s say less than 10%. From there there might be another increase to another 10%.
  There will be riots and/or protests in the streets.
  
  That is on one side. the other side will try to get back to relevance by blocking bills in legislation. This all depends on the economic climate at that time.
  
  The solution would be to restore the so-called “lock box” to secure peoples future access to SS.
  
  I really don’t see anything done unless Obama abdicates his position as a hard line ideologist.
  Report Post »
Amazingoly
Posted on March 3, 2012 at 7:58am
Folks, let‘s don’t give him the opportunity, vote the clown out. New leadership needed badly.
Report Post » Log in to ReplyReply
- bbg1123
  Posted on March 3, 2012 at 10:47am
  That … is an understatement of massive proportion !!
  Report Post »
00gabooga
Posted on March 3, 2012 at 7:57am
Get this through your head 99%, if you have ANYTHING left of your paycheck after taxes are taken out YOU ARE RICH in this president’s eyes.
Report Post » Log in to ReplyReply
- pamela kay
  Posted on March 3, 2012 at 11:38am
  OOGABOOGA; You are so right. I find it more and more difficult to stretch my paycheck these days. Between gas and groceries I don’t have that much left let alone monthly bills for meds, insurance etc.
  Report Post »
BelindaB
Posted on March 3, 2012 at 7:04am
barry soetoro is illegally sitting in the American People’s WhiteHouse, therefore anything he has done will be VOID. ALL pensions that he would of recieved will be VOIDED ALSO. ALL involved in the forgery of his credentials will be CHARGED in a COURT OF LAW! The American People Will NOT allow him on the 2012 presidential election ballot. He is a fraud, a liar, and should be, and WILL be charged with TREASON.
Report Post » Log in to Reply Reply
BelindaB
Posted on March 3, 2012 at 6:59am
barry soetoro will not be re-elected, because he will not be on the ballot. He has to prove elligibility, show all college transcripts,and be charged with illegally using a Conn. SSN that can’t even pass the US security check!!!!
Report Post » Log in to ReplyReply
- Gonzo
  Posted on March 3, 2012 at 9:00am
  You are delusional if you really believe he won’t be on the ballot.
  Report Post »
- jimtrees
  Posted on March 3, 2012 at 1:28pm
  the best news is that solyndra is building a new air force 1 for barry.
  Report Post »
- OccupyWashington
  Posted on March 5, 2012 at 1:30am
  LOL JIMTREES….
  
  yeah make him use a solar powered jet!!! See how that works for him!
  
  He should have to use an armored VOLT too! The government is the only group dumb enough to buy them….
  Report Post »
arfarb55
Posted on March 3, 2012 at 6:33am
‘TAX BOMBSHELL’: IF RE-ELECTED, WOULD PRESIDENT OBAMA RAISE TAXES FOR MIDDLE CLASS? Does a bear sh%t in the woods?
Report Post » Log in to Reply Reply
Pat Alexander
Posted on March 3, 2012 at 5:45am
The fact of the matter is no one man should have so much power..

Of course he really doesn’t. That’s why the founders instituted so many checks and balances.

But when the legislative branch refuses to assert itself – this is the result.

Pray we get rid of Weepy Boehner and get someone with stones. Michelle Bachmann comes to mind. Articles of Impeachment should have been drawn LONG ago.

Harry Reid retiring or passing on wouldn’t be a bad thing either.
Report Post » Log in to Reply Reply
tomloy
Posted on March 3, 2012 at 5:42am
Thats the dirty little secret of the democrats. All this talk about taxing the rich is a bunch of malarky. Even if you confiscated all their money, I‘m not saying I’m in favor of this folks, it wouldn’t put a dent in the deficit. The only real option is to raise taxes on the middle class, though at this point I think the feds are headed for a greece style bankruptcy. So get ready for riots in the major cities when those who collect from the feds don’t get their checks.
Report Post » Log in to Reply Reply
Living In NYC
Posted on March 3, 2012 at 3:54am
Geez..that’s not a bombshell!

One thing we know about “The Liar and Chief” is whatever he says it a lie and he will do what he wants to make the taxpayers pay for “his friend’s free stuff” all the while dirving our country down to the sewer he crawed out from!
Report Post » Log in to Reply Reply
Diego Roswell
Posted on March 3, 2012 at 2:06am
A stupid question that makes me question my visits to this web address. If Obama gets reelected, of course taxes will go up, but taxes will be the last thing the nation should be worried about.
Report Post » Log in to Reply Reply
TSUNAMI-22
Posted on March 3, 2012 at 1:45am
Personally, I wish someone would drop a “bomb” on his “shell”.
Report Post » Log in to Reply Reply
Skrewedretiree
Posted on March 3, 2012 at 12:47am
It will ALWAYS be the same with Democrats: Gun Control, Raise Taxes, Abortion on Demand, Shut down Christianity, Increase the Welfare State, Pander to Minorities (Especially Blacks, Hispanics and Moo-Slums), Contol, Tax, Control, Tax, ad nauseum.

Remember in November!
Report Post » Log in to ReplyReply
- db321
  Posted on March 3, 2012 at 1:31am
  Let not forget the Useful idiots that voted for him – I challenge anyone to so me a Communist Country anywhere in the World that has a Welfare program – It dose not exist – The Very first thing in Obama 2nd term is to get rid of Illegals, Welfare Recipients, Disability Recipients, Make Obama care so expensive only the Wealthy can afford it and he will turn into one of the most brutal Dictator of all time.
  
  We are all going to be witnesses watching people vote in their own demise.
  Report Post »
- Exrepublisheep
  Posted on March 3, 2012 at 2:08am
  @db321 Isn’t that exactly what the repubs are trying to do right now?
  Report Post »
- wntsmallgov
  Posted on March 3, 2012 at 4:16am
  Hey sheep, I am not sure where you are getting your kool aid from but please stop drinking from the troft of obama. I see the dems as shameless, morally corrupt, power hungry, anti-American, Anti-Constitution, anti -freedom. Right now there is not much they are changing my mind with
  Report Post »
- Mateytwo Barreett
  Posted on March 3, 2012 at 5:14am
  @DB321
  Nope, guns gotta go first!! Then the illegals, then the welfare broods.
  Report Post »
- Mateytwo Barreett
  Posted on March 3, 2012 at 5:23am
  @Sheep
  What twisted crap have you swallowed to end up THERE! God almighty even MSNBC is starting to get nervous! Wake the **** up!! I know you’re alive – I can hear you snoring when you post here!!
  Report Post »
Docroxall
Posted on March 3, 2012 at 12:47am
If you don’t believe he would, you DON’T understand the ideology this guy was raised on, from the day he first sucked on his momma’s tit! If it talks, walks, acts, squats, jerks, and eats like a centrally managed socialist statist, only the STUPID say it isn’t one.
Report Post » Log in to Reply Reply
SandyfromChesterfield
Posted on March 3, 2012 at 12:35am
Yeah, raise those taxes on the wealthy. First he came for the Jews, then he came for the Catholics next he will come for your money too and no one will help you. The rich will no longer be giving to charities for you.
Report Post » Log in to Reply Reply
Banter
Posted on March 3, 2012 at 12:06am
If he gets a 2nd term, he will come for the guns. The UN needs assurance when they come ashore that we are an oppressed, subservient people.

Sucks to be the UN.
Report Post » Log in to Reply Reply
martinez012577
Posted on March 2, 2012 at 11:52pm
LOL if you think Obama’s first term was bad, just wait. There will be an assault on the 2nd amendment, tax hikes, and American freedoms in the second term.
Report Post » Log in to ReplyReply
- Ruler4You
  Posted on March 3, 2012 at 12:03am
  What do mean “Allow?”
  
  He’d HAVE to increase taxes. There “IS” no way he can NOT savage the equity of everyday Americans if he were reelected.
  
  However, I‘d say that since he isn’t eligible to hold the office in the first place there is a slight possibility law enforcement and congress could do their jobs and he’ll be sent back to Kenya.
  Report Post »
- ryno117
  Posted on March 3, 2012 at 5:25am
  There will not be an assault on the 2nd amendment, because the way he is talking there won’t be one. He is now saying that the entire constitution is outdated and needs to be completely redone. REALLY???? You mean the paper this entire country(that is a million times better than any other country) was built on should be gone? This guy is an idiot, and the people who are even more stupid are the ones following him. When this country was strictly built on the original constitution and didn’t have all the “updated changes” was when the country was so much better.
  Report Post »
9111315
Posted on March 2, 2012 at 11:50pm
With his spending, a tax hike would be required.
Report Post » Log in to Reply Reply
spirited
Posted on March 2, 2012 at 11:48pm
A 3.8% sales tax when selling a home is supposedly gonna become effective in 2013
–ya know, AFTER the Nov. 2012 election.

{]$^> It’s (supposedly) in Obama’scare(y) Plan.
Report Post » Log in to ReplyReply
- Stoic one
  Posted on March 2, 2012 at 11:54pm
  not supposedly; it is there..
  
  What does that have to do with health care…? yea nothing
  Report Post »
Ookspay
Posted on March 2, 2012 at 11:44pm
We are all paying a huge tax already through Fed and Treasury created inflation. The ocean sucks on all streams.
Report Post » Log in to Reply Reply
dmforman
Posted on March 2, 2012 at 11:33pm
This is true, but how many middle and low income people will vote for him? The up coming election is going to be tough and riddled with corruption-remember he is from Chicago-vote early, vote often. Our country is over if he gets reelected. We‘re done and we’ll be worse than Greece and Europe. It will happen quickly and those who voted for him won’t know what hit him.
Report Post » Log in to Reply Reply
HoosierHunter
Posted on March 2, 2012 at 11:29pm
“In the fall of 2009, Obama’s chief congressional lobbyist, Phil Schiliro”

Huh? Didn‘t he proclaim that he wouldn’t have any lobbyist???
Report Post » Log in to ReplyReply
- PATTY HENRY
  Posted on March 2, 2012 at 11:40pm
  WHAT ARE YOU TALKING ABOUT? IF Obama is re-elected there won’t be any classes…just slaves and that sawed-off SOB will be THE DICTATOR like “his heroes” he has already started talking about…and look out world…this NUT CASE in the WH IS NOT JUST TALKING ABOUT THE US OF A…HE SEES HIMSELF AS THE DICTATOR OF THE WORLD.
  
  The man could NO pass a SANITY TEST. THE VOTE IS: ANYBODY BUT OBAMA…AND ANY SENATOR WHO WOULD DO HIS DIRTY WORK…. Good riddance Snowe.. You shoulda been gone a long time ago…30 years and now you are saying it’s hostile. THROW UP.
  Report Post »
- spirited
  Posted on March 2, 2012 at 11:50pm
  yes, he did.
  Report Post »
- NancyBee
  Posted on March 2, 2012 at 11:50pm
  Pattie Henry……you‘re right about Snowe and she’s going out….. burning the bridges
  Report Post »
Snowleopard {gallery of cat folks}
Posted on March 2, 2012 at 11:28pm
To put it simply – yes.
Report Post » Log in to ReplyReply
- NancyBee
  Posted on March 2, 2012 at 11:47pm
  He will tax everybody and every thing…………….shovel ready jobs with the IRS
  Report Post »
- Darmok and Jalad at Tanagra
  Posted on March 3, 2012 at 1:54am
  The beatles have a song about him, very prophetic.
  Report Post »
Stoic one
Posted on March 2, 2012 at 11:17pm
He gets reelected the Bush tax cuts will be the least of our problems, there will be no electricity in this country.
Report Post » Log in to ReplyReply
- NancyBee
  Posted on March 2, 2012 at 11:52pm
  I’ve stocked up on candles and bics
  Report Post »
Psychosis
Posted on March 2, 2012 at 11:06pm
If obamao wins the next election it will be like a freight train without brakes

that is until reps and dems finally pull the plug and impeach then arrest the imposter on charges that they are all aware of
Report Post » Log in to ReplyReply
- AM-Saves
  Posted on March 2, 2012 at 11:13pm
  If Obama wins the next election, taxes will the least of our problems…
  Report Post »
- NancyBee
  Posted on March 2, 2012 at 11:55pm
  and arrest those czars, too
  Report Post »

It appears that you have Javascript Disabled. Please enable Javascript in your browser preferences for a better user experience on TheBlaze. You can not comment without Javascript enabled.