Obama's answer on tax hikes, from his news conference

At the end of his news conference today, President-elect Barack Obama was asked about the tax increases he proposed during his campaign. Here's the question, and Obama's answer:

Q: Do you still intend to seek income tax increases for upper-income Americans? And if so, should these Americans expect to pay higher taxes in 2009?

A: The -- my tax plan represented a net tax cut. It provided for substantial middle-class tax cuts; 95% of working families would receive them.

It also provided for cuts in capital gains for small businesses, additional tax credits. All of it is designed for job growth.

My priority is going to be, how do we grow the economy? How do we create more jobs?

I think that the plan that we've put forward is the right one, but, obviously, over the next several weeks and months, we're going to be continuing to take a look at the data and see what's taking place in the economy as a whole.

But, understand, the goal of my plan is to provide tax relief to families that are struggling, but also to boost the capacity of the economy to grow from the bottom up.

So, does that sound like he's reserving the right to back off from tax hikes, which many analysts believe would be a big mistake in a sinking economy?

Comments

[Gregg]

Yes, he is going to raise the taxes. Only way to pay for the cuts. He just wants to talk about the net effect, not how you get there.

Doesn't he realize that people can make $250K a year and be struggling? How about this. $250K - $15K 401K = $235K.
FICA. $6K. NYS and NYC tax 10% or $23K.
Federal Tax ~90K under Obama. Total taxes ~ $120K
Take home: $235K - $120K = $115K
Rent in NYC for a 900 sq ft 2 bedroom - $60K
Nanny in NYC $600 a week or $32K a year

That leaves you $23K to live on or $2K a month. Now, if you are a doctor with school loans of $100K, you are spending $1K a month on school loans. Now you are left with $1K a month to live on, pay for utilities, etc. No savings, no car, no restaraunts, no diamonds, no jewels, no nothing.

I guess i should move to Kansas, make $75K a year, pay no taxes and pay $600 in rent. I would be much richer then!!!!

Obama just doesn't get it or he just doesn't care.

[martscan]

Gregg:

Sorry, we are not all last year's Xmas tree...your so-called calculations are a joke.

[herbito]

Man, you have to agree he's great at leaving you totally confused with his answers!

[JS]

The reality is that, Obama is saying the same thing he said during the campaign - nothing. At least, nothing concrete.

He has some bright bulbs on his team, for sure, and they're not going to let the "social agenda" run him out of office after 1 term.

But all in - I suspect Pelosi, Frank and the rest of the left-wing power brokers will hijack his agenda throughout the legaslative process. I can already hear the phrase, "It's the best we could do under the circumstances". Too bad there's no Republicans to blame now.

Much like every other president before him, including both Clinton and Bush, Obama will soom come to realize the enemy has us surrounded - and he is us.

[John G]

"...boost the capacity of the economy to grow from the bottom up"

So he thinks the poor and middle class create jobs and grow the economy.
Obviously he should have taken Basic Economics 101 before becoming a community organizer.

[Spencer]

With a majority in both houses, and a strong Republican platform of tax cuts, Obama should get that tax cut through in about 2 seconds. First 30 days....60 days? He could tell America he reached across the isle, fulfilled a campaing promise, 'got er done' for the peeps.....blah...blah...blah. It's a no brainer.

Ooops....I forgot....he's a party line Democrat. He won't even propose a tax cut. For all of you who voted for him....... suckers!!!

[Spencer]

Oh yea....don't forget his free tax hike when Bush's tax cuts expire. He'll get his increase without lifting a finger.

So, if Bush Sr. campaigned on 'Read my lips....' then did the opposite and got thrown out of office. Should we expect the Dems to toss Obama for campaigning on 'tax cuts for 95% of working families' then not delivering...in fact increasing tax's through expiring Bush tax cuts?

[madayil nair]

US TAX Syatem:
“How "progressive" are U.S. income rates? The Paris-based Organization for Economic Co-operation and Development published a report earlier this year on the tax regimes in 24 developed economies. It concluded that the U.S. "has the most progressive tax system" of all of them (including Sweden, France and Germany) - and collects the largest share of taxes from the richest 10 per cent of the population.” This is a quote from Neil Reynolds @ gmail com
Now Obama wants to increase this high tax to higher lever to appease the biggest set of voters in the left. He expects to have a realignment of low-income voters, blacks and Hispanics. This is necessary for his second team election and maintains the democratic majority in the House and Senate. I have mentioned the consequences of this tax increase earlier. In summary they are: movement of manufacturing jobs abroad including high tech jobs; movement of investments to developing nations; increase in competition for US products due to reduced cost advantage of foreign manufactured goods and services; reduction in US share of global trade; reduced upscale jobs and loss of productivity in US without any increase in overall tax revenue etcetera.
The present economic crisis is nothing to do with US tax rate. It is due to the greed of few investment houses and banks; lack of oversight of financial institutions by the congress and government agencies. Obama’s suggested solutions in yesterday’s press conference is not touched any long term solutions for major issues.

[Bob S.]

Not only is he backing off raising the taxes, he is also backing off his tax cuts.

[orwellian]

Reality emerges victorious, as it always does. During the campaign, Uhboma said he would hike the capital gains tax on businesses. After all, he said, "it is only fair." In his first press conference, he said he will lower the capital gains tax on businesses so as not to dampen job creation, which was part of the McCain/Palin plan. Me thinks his Marxist ideals have hit their first snag in a hurry...

[Rocky]

Yes, Gregg should move to Kansas. At least he won't have all the financial stresses he faces in New York. $5,000 per month to rent a small 2 bedroom apartment? Very foolish. The choice is up to him.