Obama May Delay Reversing Tax Cuts

[audtatious]

(AP / WASHINGTON) — Democrat Barack Obama says he would delay rescinding President Bush's tax cuts on wealthy Americans if he becomes the next president and the economy is in a recession, suggesting such an increase would further hurt the economy.

Nevertheless, Obama has no plans to extend the Bush tax cuts beyond their expiration date, as Republican John McCain advocates. Instead, Obama wants to push for his promised tax cuts for the middle class, he said in a broadcast interview aired Sunday.

"Even if we're still in a recession, I'm going to go through with my tax cuts," Obama said. "That's my priority."

What about increasing taxes on the wealthy?

"I think we've got to take a look and see where the economy is. I mean, the economy is weak right now," Obama said on "This Week" on ABC. "The news with Freddie Mac and Fannie Mae, I think, along with the unemployment numbers, indicates that we're fragile."

Obama was referring to the two mortgage companies taken over by the federal government Sunday in what could become a huge taxpayer bailout. The nation's unemployment rate climbed to 6.1 percent in August from 5.7 percent the month before, the government said last week. It was the first time in five years that the unemployment rate had topped 6 percent.

Obama and McCain have sparred over tax policy for months. Obama says McCain wants to continue Bush administration policies, noting that McCain had voted against the Bush tax cuts but then embraced them as he campaigned for the Republican presidential nomination.

"John McCain likes to talk about fiscal responsibility, but there is no doubt that his proposals blow a hole through the budget," Obama said.

McCain has repeatedly hammered Obama over taxes in an attempt to paint him as a typical tax-and-spend liberal. McCain wants to make permanent the Bush tax cuts, which are set to expire at the end of 2010.

"We can get this economy back on it's feet," McCain said in an interview aired Sunday on "Face the Nation" on CBS. "Don't raise their taxes. Get it going again. Americans are hurting in a way that they have not hurt for a long time."

The Tax Policy Center, a think tank run jointly by the Brookings Institution and the Urban Institute, concluded that Obama's tax plan would benefit middle-income taxpayers more than McCain's. However, Obama would raise payroll taxes on taxpayers with incomes above $250,000, and he would raise corporate taxes. Small businesses that make more than $250,000 a year also would see taxes rise.

McCain's plan cuts taxes across all income levels. It would cut taxes for those in the top 1 percent by more than $125,000, raising their after-tax income an average 9.5 percent, the center concluded.

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Wait......He has stood on reversing the tax cuts to help the little people and that the Bush "tax cuts for the rich" do nothing but help the rich. Now he is saying he is considering NOT removing them immediately because it would hurt the "fragile economy"? What about hurting a non-fragile economy, that OK? Seems he pretty much agrees that penalizing the rich by increasing their taxes will cause economic pain.

Wonderful.

[The Wicker Man]

Good. I applaud Obama for this.

[audtatious]

Of course you do. Anyone who follows Obama knows he constantly changes his stance all the time anyway. Must be used to it by now.

[The Wicker Man]

You mean like how rove also changes his stance all the time?

Hypocrisy of Republicans

I guess you'd know how long it'd take to get used to it.

[audtatious]

When did Rove start running for President?

[The Wicker Man]

[audtatious]

Why roll your eyes? We are talking about the Presidential candidate and you deflect by stating Rove changes stances.

[smockers83]

He's said he would delay his tax increases or whatever for quite awhile now actually, depending on the economy. But the TPC implicitly exposes his tax policy paradox--raise taxes on businesses and you cut middle class jobs, so much for cutting taxes on the middle class as it wouldn't really help them out.

[audtatious]

Why, that can't be true because then it may imply that trickle-down economics may actually work.

[The Wicker Man]

[Jimefam]

Economics is Mccains weakest subject. Those tax cuts were wrong when they were passed by the current prez and will be even worse if extended. We need to balance our budget before we even think about extending those tax cuts. The fact is that neither democrats or republicans are economically conservative anymore. In all fairness to democrats clinton came into office in similar conditions to today(okay not as bad but that bush only had 4 years to f up we gave this one 8) and was able to balance the budget and turn record defecits to a projected multi trillion dollar surplus when he left office. Plus I think that Obama delaying his plans for tax cuts until we see what shape the economy is really in is pretty wise and i'm sure Mccain is doing the same. Fiscal policies are not set in stone or atleast they shouldn't be as the economy is fluid and we need politicians that are willing to adapt. (something i'm highly critical of bush for, the man never listens to reason)

[The Wicker Man]

Economics is Mccains weakest subject.

[smockers83]

Whoever gets to the hot seat, if they can implement a good tax policy and they are given time, we could easily eliminate the deficit just as Clinton did. The economy is probably at or near its bottom leaving room to only move up, which will greatly help, but again a good tax policy is needed. If the government doesn't get too involved in regulation, provides favorable taxes for business investment, and allows the majority of consumers (middle class) to improve their situation, you'll start seeing the annual deficit shrink as the economy grows and wealth is accumulated again. But that just got even harder to do as the government took over Freddie and Fannie, consequently that brings in more debt to the books. If we can get the overall debt down to around 1-1.5% of GDP, that would be awesome. Shall be interesting.

[Jesda]

Economics is Mccains weakest subject. Those tax cuts were wrong when they were passed by the current prez and will be even worse if extended.

I am so sick and tired of Clinton getting credit for the 1990s. Everyone conveniently forgets the government shutdown that happened when Newt Gingrich forced his hand after Clinton refused to sign a balanced budget. Yes, my friends, the federal government shut down with the exception of essential services (FBI, mail, etc).

HERO

Federal revenue INCREASED after the GOP's/President Bush's tax cuts went through. Why? Look up "The Laffer Curve". Yes, Laffer's theory is debatable, but it proves itself over and over again. It did during the Reagan years and it did again during Bush's first term.

The problem, therefore, was not the tax cuts. Those tax cuts contributed directly to consumer spending and economic growth (if you're into that Keynesian stuff), and government revenues increased soon after.

The problem is entirely related spending. Stop blaming tax cuts for the deficit. Stop giving Bill Clinton credit for something he was forced to do.

[audtatious]

Good point. I had actually forgotten about that.

[wingFeather]

I am so sick and tired of Clinton getting credit for the 1990s.

Federal revenue INCREASED after the GOP's/President Bush's tax cuts went through.

Jesda, I have gained new admiration for you.