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Why Obama Will Keep the Tax Cuts for the Rich

He’ll swallow them, at least for a couple of years, just watch and see. He signaled it in the press conference today by pointedly not ruling it out when asked if he’d consider extending the upper income Bush tax cuts. This was the comment.

So my goal is to sit down with Speaker-elect Boehner and Mitch McConnell, Harry and Nancy some time in the next few weeks and see where we can move forward in a way that, first of all, does no harm, that extends those tax cuts that are very important for middle-class families; also extends those provisions that are important to encourage businesses to invest and provide businesses some certainty over the next year or two.

And how that negotiation works itself out, I think it’s too early to say.

See? Everything’s on the table. He’ll take them because:

1. Economists will warn him not to raise taxes when the economy is weak.

2. He can use it as a bargaining chip with Republicans – “I gave you this, I’m flexible, what are you going to do for me? What? Nothing? You are the inflexible Party of No.” He’ll have a point.

3. He’s now going to lose Democrats on this. The country has spoken. The Democrats from moderate states and districts aren’t stupid. Or at least, they won’t be stupid twice. Obama would have to veto a bill backed by probably a half dozen or more Senate Dems and at least 10-20 Democrats from the House.

So if you’re making more than $250k a year, get ready to buy that second flat screen TV, in Obama’s telling at least.

I thought former OMB Director Peter Orszag was off the reservation when he wrote a couple of months back, just after leaving his post, that the White House should agree to a compromise of extending all the tax cuts for two years.

Now I’m thinking he perhaps was wandering around ON the reservation – a stalking horse for an eventual Obama compromise.

8 thoughts on “Why Obama Will Keep the Tax Cuts for the Rich”

  1. If Obama keeps the Bush tax cuts, WATCH for MSNBC and the left to go ABSOLUTELY NUTS on cable t.v., the blogs, the internet. Screw the reasoning that its good for America, business and those suffering — the left will have a meltdown because its not just “tax cuts” —- its the BUSH tax cuts!!!!!!!

  2. BOo didn’t want to keep the tax cuts because he said the rich just squirrel their money away not like the middles who spend, spend, spend. I’m sure it’s the quarter point interest rates that just entice the wealthy.

    I’m sick of hearing about, rich, wealthy, middle class, class. Is this what it was like during Marxism101? I skipped those classes.

    I made a picture for the Obama’s India trip. It’s a spoof on the Europe on $5 a Day classic:

  3. Taxing the rich is another step in ‘redistributing the wealth’ that MrO did say was one of his goals. Not HIS wealth, but the other guys wealth. Obamacare and Cap&Trade are also vehicles to ‘redistubute the wealth’ disguised as concerns about the poor people and the poor earth.

    As a purely political move, MrO must agree to extend the Bush tax cuts and for longer than “one or two” years. No way will either party allow the tax cuts to expire in a Presidential election year.

    Memo to the WH: it is necessary to explain to the public the wisdom and purpose of the trip to India before the rumors really, really get ugly.

  4. Two things. Is it just me or is it odd he calls Harry and Nancy by their first name but it’s Boehner and Mitch Mconnell when it comes to the GOP? Also, the issue on the table is actually a tax increase, there are no cuts being discussed. I wish we could change the way they all see the revenue stream in DC.

  5. Yeah, if you don’t follow this stuff, keeping a tax cut sounds like you will pay less–it means status quo and no increase… Very tricky these poliiticans!

    As for the name thing, he likes Harry and Nancy and depends on them to explain the legislative process to him and he doesn’t like the other two. They don’t like him, either.

  6. JBH,

    I caught that also. He said, “Nancy and Harry” like he was referring to children or a married couple (the off spring, heaven forbid).

    The tax cuts should be ACROSS THE BOARD for all. Like a cold, STARVE the government of money and then begin to shut down the Department of Education, EEOC, and all the other ridiculous Socialist bastions of power; then start firing government workers. Even though I am a right-wing fascist, I would also start by firing the ENORMOUS beehive of Generals and Admirals that we have that inhabit EEOC, CONUS and USAEUR posts and serve no purpose. I would cut the military down to a four naval task forces, 5-8 infantry divisions, and three brigades of special forces. And that should be just the start…

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