This Way That Way
President Obama is demanding that more than $1 trillion in tax increases be part of any deficit reduction package. Which is a real swing from the man two years ago.
The president was asked by Elkhart IN. resident Scott Ferguson: “Explain how raising taxes on anyone during a deep recession is going to help with the economy.”
“First of all, he’s right. Normally, you don’t raise taxes in a recession, which is why we haven’t and why we’ve instead cut taxes. So I guess what I’d say to Scott is – his economics are right. You don’t raise taxes in a recession. We haven’t raised taxes in a recession.”
Then Obama was reminded hat he had promised to raise taxes on “some of the wealthiest” Americans.
“We have not proposed a tax hike for the wealthy that would take effect in the middle of a recession. Even the proposals that have come out of Congress – which by the way were different from the proposals I put forward – still wouldn’t kick in until after the recession was over. So he’s absolutely right, the last thing you want to do is raise taxes in the middle of a recession because that would just suck up – take more demand out of the economy and put business further in a hole.”
So where are we today? The unemployment rate for June was up to 9.2 percent.The labor report showed a small increase of 18,000 jobs during July. The number of unemployed people across the country rose by 545,000 since March, there were 14.1 million unemployed people in July.
The proposals under consideration include raising taxes on small business owners and potentially low- and middle-income families.
Remember the 2010 Affordable Care Act?
Starting in 2013 is a 2.3% excise tax on medical device manufacturers and importers. That’s estimated to raise $20 billion. This year is the new annual fee on “branded” drug makers and importers, which will raise $27 billion. Another $15.2 billion will come from raising the floor on allowable medical deductions to 10% of adjusted gross income from 7.5%. The bill also imposes a whopping 40% “excise tax” on high-cost health insurance plans, this tax would still raise $32 billion—and much more in future years. Then there is a new annual fee on health insurance providers starting in 2014 and estimated to raise $60 billion.
But now the president wants to add another $1 trillion in new taxes on top of this.
So Mr. President the question to be asked is, if you felt raising taxes two years ago was a bad idea, now that we are in an even deeper recession with more people out of work why is it now a good idea to raise taxes on struggling Americans?