Archive for Monday, September 8, 2008

Recession could delay rescinding the Bush tax cuts, Obama says

September 8, 2008


— 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.

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.


Steve Jacob 7 years, 1 month ago

Lower taxes when we just added 5.1 trillion in debt from Fanny/Freddie. Right!

Godot 7 years, 1 month ago

Here is a middle class tax cut that makes sense. Let us use our 401K and other retirement money to pay off our mortgages, tax free. That will give the banking system the money it needs to lend to new buyers.

just_another_bozo_on_this_bus 7 years, 1 month ago

Not a bad idea, Godot, although I would add a stipulation that the mortgage interest deduction be capped at somewhere around $250,000 valuation.

Centerville 7 years, 1 month ago

Maybe we could take up a collection and send this guy a clue. Or maybe we're the ones who need some smarts. It's obvious that 0bama's hell-bent on raising taxes, no matter what illogical excuse he picks. Like McCain said: economy on the upswing - they want to raise taxes, ecomony on the downswing - they want to raise taxes.

Chris Ogle 7 years, 1 month ago

We the people just took over the two largest home lenders....... Talk about taxes???

Godot 7 years, 1 month ago

I'm not talking about mortgage interest, I'm talking about the entire mortgage. Let us take out, say, up to $200K, tax free, to pay off or mortgages. It is a better idea than borrowing money from China and Japan to pay off the mortgages that fail.

Godot 7 years, 1 month ago

Screedposter, that is a great catch!!

Godot 7 years, 1 month ago

People who have mortgages and who also invest in 401-k's, IRA's, etc, are, essentially, borrowing to invest. This practice makes no sense, financially, for Joe SixPack. It is, however, a tremendous cash cow for Wallstreet.

Satirical 7 years, 1 month ago

Maybe his economic adviser eventually convinced him that high taxes and a growing economy are mutually exclusive.Another flip-flop for Obama. Is this political pandering or is Obama really not the liberal most people thought he was? There is this, plus his vote on "domestic spying" issue. Can we really trust anything Obama says?

situveux1 7 years, 1 month ago

I see, so, when the economy is bad, we need the Bush tax cuts. When it's good, we need to raise taxes? I thought the Bush tax cuts were only for the 'rich.' So, why would Barry 'I'm not a Muslim' Osama say that we need to keep them when we just added trillions in debt and need to give tax cuts to the 'middle class.' Can somebody buy this guy a clue, or for God's sake at least some consistency with his lies.

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