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Hope and change, tax edition

July 23, 2009

From the official Obama campaign website:

FACT #3: Under the Obama Plan, No One Will Pay Higher Tax Rates Than They Paid in The 1990s. Barack Obama believes that any responsible candidate must put forward specific ideas of how they would pay for their proposals to put us back onto the path of fiscal responsibility. That is why he has called for repealing a portion of the tax cuts passed in the last eight years for families making over $250,000. But he would limit all rates to be at or below what they were in the 1990s. Families making over $250,000 would pay the 1990s marginal income tax rates – of 39.6 and 36 percent – and capital gains and dividend tax rates of 20%.

From today's Wall Street Journal:

President Barack Obama, looking to pay for his ambitious health-care plan and shore up public support, endorsed a surtax on families earning $1 million a year for the first time Wednesday.

That means a 45% top rate - considerably higher than the Clinton-era peak. But it will only affect the rich, right? Don't count on it:

P.P.S.: On tax increases, Obama said
I don't want that final one-third of the cost of health care to be completely shouldered on the backs of middle-class families who are already struggling in a difficult economy. And so if I see a proposal that is primarily funded through taxing middle-class families, I'm going to be opposed to that ... [E.A.]

In standard Washspeak, this means Obama is open to a health reform that taxes middle class families as long as it isn't "primarily" or "completely" funded by taxes on middle class families. But 49% funded by taxes on middle class families? ... However you interpret these sentences, it's hard to see how Obama hasn't given a flashing green light to non-trivial tax increases on middle class families.

Ask not for whom the toll for "healthcare reform" tolls. It tolls for thee.

The 'it's a tax on somebody else' fallacy

The surtax will hit only a few businesses: just the good ones

Tags: Health care.Kausfiles.Obama Tax Policy.