To get the economy back on track, will President Barack Obama have to break his pledge not to raise taxes on 95 percent of Americans? In a “This Week” exclusive, Treasury Secretary Tim Geithner told me, “We’re going to have to do what’s necessary.”
Geithner was clear that he believes a key component of economic recovery is deficit reduction. When I gave him several opportunities to rule out a middle class tax hike, he wouldn’t do it.
“We have to bring these deficits down very dramatically,” Geithner told me. “And that’s going to require some very hard choices.”
“We will not get this economy back on track, recovery will be not strong and sustained, unless we convince the American people that we are going to have the will to bring these deficits down once recovery is firmly established,” he said.
Even Summers said it. I wonder if all the bankers who got vast bonuses that were paid for with government money that raised the deficit will be taxed extra? It could happen…
Shocking. A politician did not keep his word. I will mention however that if Obama does raise taxes on those below $250K, it will be “Read my lips” all over again with the same result: a one term President. Only in this case, it will be worse in that Obama create the problem with ridiculous bailouts and spending that required the tax increase in the first place.
Whew! Just think how bad things would be if we’d voted in a tax-n-spend liberal!
This is great news. Those who voted for him will continue to receive their welfare checks, get free medical, and get $4500 for a piece of shit car.
[rest of comment deleted for violation of blogging guidelines. — ed.]
He already raised taxes on the poorest of Americans: smokers. So much for keeping his promises. The cost of cigarettes in my state are double what I used to pay for cigarettes when I was a smoker.
#4, Benjamin,
This tax was planned two years ago only Bush vetoed it. I find it truly funny that the right wing nuts like to scream about all the taxes Obama has forced upon them, yet this is the best they an do.
If you smoke, quit. If you don’t smoke, shut up.
Taxes = Good
Deficit = Bad
Somehow, the Republicans see it the other way.
The free lunch is over!
#3, Scrooge the idiot.
I voted for Obama. I don’t get a welfare check and there is just no way any of our cars will qualify for the $4500 rebate.
Where you think the free medical will come from is beyond me; I fully expect some form of taxation (be it through income taxes or a payroll premium), similar to my current health insurance being paid for.
The huge deficit we have can be traced back to Reagan and his whole supply side economics, the Bush “cut taxes but spend money on a Legacy War”, and the right wing push to move all American manufacturing off shore. Thank Obama for trying to do something to fix that mess.
If you are living under an intolerable burden of debt, as an individual there are only a couple of ways to deal with it. You can try and get the creditor to devalue/write-off some of the debt or you can drastically change your lifestyle to try and pay it off.
Most western governments seem to be in this situation. The root cause is collectively we haven’t been paying our way or making anything of value for some time now.
Unless things completely collapse, the debt will be partly written-off by currency devaluation and we’ll pay the rest off through higher taxes and making and doing stuff that people actually want to buy. My biggest fear is we’ll ignore the situation (like someone sitting on the dole waiting for the bailiffs to come round) and wont actually bother to create any new jobs.
odd there is no need for new taxes… just get rid of all the tax breaks, there would be less paperwork and less need for tax preparers.. a win win for all..
i wonder when there will truly be real tax reform and a move to a flatter tax schedule.
Let’s all hope that our econpmy falls apart NOW. If not then as Dvorak says in his “cycles” theory we are on the verge of a major ramp up of the market, followed by a MAJOR depression.
I don’t think anyone cares, but better to fall apart now than for this game to go on any further.
Now = very bad times
Later = Apocalypse.
Just sayin`
#7 Mr Fusion
I voted for Obomba during the primary and if you can trace the deficits all the way back to the greatest President Since Lincoln how do you explain the surplus that Clinton had? I’m sure you will say taxes and I’m fine with that but it isn’t the Presidents causing the problem.
It is the absolute pieces of shit congress men and women spending like it was someone else s money. Oh yeah, it is, ours.
Not on welfare yet nor will any of our cars qualify (6 of them for the two of us) for the “help the poor children and protect the environment CARS program” bullshit.
If they want to pass a stimulus package how about giving taxpayers (I’m not talking about the welfare drawing baby mills watching cable and talking on cell phones who don’t pay a fucking dime in income taxes “poor” people) half their money back? Want to see a recovery then let me keep and spend MY money the WAY I WANT TO and not the way these fucking unbelieveable pieces of shit do in the government.
(I have gone so far as to give guns for presents now. Just in case the shit storm happens I want relatives prepared.)
I pay approximately 1/4 of my income to the health insurance companies in premiums or in co-pays.
If single-payer raised my taxes by even 20%, I’d be ahead.
Well unlike all the other wackos, I won’t get my feathers ruffled until said taxes are raised. The only thing that is keeping me poor are companies and people who use the “recession” as an excuse to pay people less then what they owe and ship jobs overseas.
@ Mr Diesel Clinton did nothing to create the surplus as did the Republican congress at the time but both take credit. If you recall that was a housing boom at the time and the .com era was beginning and the windfalls from the taxes balanced the budget. Clinton was told to sign the balanced budget act because there was going to be a surplus regardless of what he did. Do not be fooled.
If you want to see a crisis when the programs and taxes are out of control then just look to California. We have 12% of the population but 30% of the welfare recipients.
#16 >Greg Allen
Just what I expected – blame present actions on someone no longer in charge. No wonder today’s mess will never get fixed. The other guy did this so it’s fine for Obama and his congress to spend you into depression?
If nothing else it should ease your conscience while enjoying the coming depression. At least you will have something to talk about while cooking a nice juicy rat over an open flame.
bon appétit
This ain’t news, it’s just a rant. Nothing’s gonna keep the rich and powerful from suckling that big fat golden tit called the government. First they tell us if we don’t give away trillions to the banks the worlds gonna end. Now there’s a defecit that could kill Godzilla and of course they just have to fix that enormous gaping hole before it gets godzilla and the US economy.
This dilema has only one real solution, eat the rich!
#5 Ralph, the Bus Driver,
The point I was making is Obama lied about not taxing people making less than $250,000. I don’t smoke, but many lower income people do. It is a tax on those people.
Oh piffle to this short term worry. It is about souring the milk so bad, the next drink in the future will taste sweeter ONLY by being less sour. Now, what could that be? Think 2 steps ahead.
I edited someone’s previous post, to make it more appropriate.
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Since the people are not willing to stop corporate theft – excuse me, spending then a nice long depression is just what is deserved.
Corporate welfare programs will come to a halt as will other so-called corporate entitlements. Crime will increase to the point you will be forced to keep your money in your mattress, or the corporatists will come steal it. How’d Bush working out for you?
Maybe it’s time for all you wannabe corporatists to suffer for your stupidity. Now that’s CHANGE you can believe in.
Tax the rich FOR FOUR hundred MORE YEARS!!!
no wait – tax them FOREVER !!!
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Tax the rich. They mostly benefited from the handouts. Make them pay their fair share!
Maybe if Obama tried collecting taxes owed by members of his cabinet, like Tim Geithner, we’d all be slightly better off.
Someone (with balls) should ask Tim Geithner, point-blank, if taxes are raised, will he actually pay them himself?
You guys are so full of shit, if any new taxes are levied, they won’t go to pay off the deficit. They’re go ahead and spend the money, mostly on their friends, with very little of it going to the “masses”.
This is just another rip off, I’m against any new taxes. The taxes will simply be wasted on some new government spending that will only go to pay off more fellow travelers.
This deficit spending didn’t start with Reagan, it started with Johnson and the Great Society.
Most of our money goes for social spending, only by ending the social spending and bringing back tariffs – That’s TARIFFS, can we hope to bring our economy out of the current problems and bring the budget under control.
Whatever…………………………
Traaxx
Eventually, it’s all a zero-sum game. There’s paper, and there’s goods. What is paper worth? What are good worth? An IOU in the form of a treasury note can be paid with more paper or some electrons quite easily.
Goods and services must, in the end, be paid for with real wealth. For most of the 20th century, the US build up “wealth” through goods and services. We are now spending down that surplus wealth. Eventually it will run out when no other country is willing to buy our paper. Then we will have to pay with assets- goods, services, commodities.
That day is the day I fear. We will HAVE to balance our budget at that point because no one will lend to us. Our fiat currency will be a shambles and we’ll be borrowing not in dollars, but in Yuan, Yen and Euros.
In the mean time, fiat currency hyperinflation should be expected soon so that a trillion dollars feels more like a billion. That also means all fixed income earners, savers, and investors will be wiped out completely.
I don’t expect to ever be able to retire comfortably even though I’ve always saved 10% per year and have a pension.
We’re screwed and it doesn’t matter which party did the screwing, because they both did it. This ends in bloodshed.
Let’s see…
The last time the country was in the black was before the Civil War.
Since then, every government, whig, republican and democrat has only increased the deficit.
The chickens have been roosting since 1867. And now someone says we have to raise taxes to pay for it and everyone wonders WHY should WE have to pay?
Well if it isn’t us who the hell will it be you dolts?
Who the hell is going to bite the bullet and start paying for this crap that is OVER 100 years old?
Anyone who doesn’t want to pay taxes for better infrastructure, reducing the debt and getting a health care system that protects citizens should just kill yourselves now. I don’t want you to even go to some foreign country where you’ll eff that up. Just go shoot yourselves in the head.
We don’t need you whiny ass people clogging up our nation with the spoiled brat attitude of it is someone else’s problem. That is WHY we are in this mess is from this method of thought.
If it is too hard for you to be responsible then off yourselves. You’re too weak to exist in this world.
I am more than willing to pay even 50 percent tax to fix things. I already pay 42% without counting sales taxes and other fees. What is another smegging 8% to get health care, better roads and bridges and to reduce our debt?
I’ll wager that half of the whiners are not even paying 25% let alone 50! Pantywaists!
Cursor_
>If you smoke, quit. If you don’t smoke, shut up.
Wow, such brilliance. How about if you drink soda, quit, if you don’t shut up. If you eat meat quit. If you don’t, shut up.
So now your next value meal will cost $15.
#28, ‘dro,
Nice comeback. Totally irrelevant and very stupidly made, but, yup, nice comeback for a Cuban.
#21 – pedro – Taxes good? Explain how?
It pays for the gov expenditures. It imagine this… it eventually pays off the US foreign debt.
For those of us who still young at heart and have retained the power to read, in this video/mp3/PC age, I suggest you Google the name Lucius Septimius Severus. He was the FIRST black emperor (of North African Berber heritage). He does share one other historical resemblance to the current one. That is, he in his own way, “ran the presses” to pay for spending his empire couldn’t afford.
His government used money that consisted of coins with the hard-to-obtain precious metals and not the current standard of paper money (i.e., Fiat Money). So, he began the replacement of increasing percentages of the gold and silver in coins with brass. (Notice that even our coin the U.S. Cent now contains very little copper.) Emperors will have what they want no matter what the economic costs.
By the way, you may be interested to know:
In your schools, they always mention various reasons why Julius Caesar invaded Gaul (later France). They don’t mention the REAL reason. The Northern Tribes had mines that produced large amounts of gold and silver. (After 2,000 years, most of it is long mined out.) When the natives controlled the mines they would use the profits to pay for large shipments of wine from Italy all the way to Northern Europe (very popular drink, even then). After Gaul was seized, the Romans introduced their first coin containing gold. The previous ones had only contained silver.
No matter what a politician says, IT’S ALWAYS ABOUT THE MONEY!
IT’S ONLY ABOUT THE MONEY!
THE MONEY IN THEIR POCKETS!
#6
To fiscal conservatives
Taxes = Bad
Deficit = Bad
Those used to predominantly be Republicans but that was long ago.
#25
> if any new taxes are
> levied, they won’t
> go to pay off the deficit
Exactly! This is exactly why no one buys the argument of “we need to raise taxes.” No one honestly believes that A: the increase will actually go towards paying down the deficit or B: that they’ll ever go away.
#27
As I just mentioned, no one really believes that additional tax money will go towards better infrastructure, reducing the debt nor reducing health care costs to the individual. Oh, I believe “some” of it will, but are you willing to pay higher taxes if only say 5 cents out ever dollar actually goes towards these things with the other 95 cents being pissed away?
> I am more than willing
> to pay even 50 percent
> tax to fix things.
I’m well beyond 50 thanks to the wonderful state of CA, so can I be excluded from any additional taxes? Why stop at 50%? Why not 60%? Why not 70%? How high are you willing to go to “fix” things? What would say if you felt you were already at that limit?
Bring the soldiers home cut the dense budget in half and you’ll have enough to fix this mess in no time and have enough cash for socialized medicine to boot. Americans are amazing, they pay a huge amount of taxes in sterile wars, but get all choked up if it’s going to social purposes.
Actually, you could eliminate the entire defense budget and there would still be a deficit. Maybe in 2007, that would have balanced the budget.