Obama’s Middle Class Tax Cut May Not Survive Budget
April 7, 2009 by Capt. Karl
The President’s Budget Chief Says Senate Dems May Scrap Tax Cut
President Obama’s budget chief hinted Wednesday that the president’s signature campaign issue — a middle-class tax cut — will not likely survive a budget battle with Democrats on Capitol Hill.
On a conference call with reporters in advance of the president’s trip to the Hill to speak before the Senate Democratic caucus, Office of Management and Budget Director Peter Orszag indicated that, while 98 percent of the budget mark-ups in the House and Senate are on par with the administration’s budget blueprint, some campaign trail promises, like middle-class tax cuts, may get left on the cutting room floor. – - You weren’t really expecting this were you? – - Capt. Karl
The administration had tied the revenue raised from its environmental “cap-and-trade” proposal to the middle-class tax cuts — known as the “Making Work Pay” tax credit for families — both of which have been brought up as possibilities to be scrapped from the Senate and House budget resolution. - - Well Ah Duh! – - Capt. Karl
Obama’s middle-class tax cut is locked in place for the next two years as part of the stimulus package he signed into law last month, but Orszag told reporters today that the White House will have to use those two years to figure out how to keep that tax cut in place for middle-class families beyond 2010. - – If you would allow this humble ol’Capt., may I offer you some advise; “Don’t hold your breath, mates!” In fact I would suggest you can expect that the average working man can expect a HUGE massive increase in Federal Withholding, Payroll, FICA (Social Security) and Medicare taxes. I suggest that in less than three years your taxes will be at least 50% of your earnings. Shortly after which it will increase to 80%. See numerous articles on this subject matter within The Liberty Tree Lantern blog.
Obama took his budget campaign to the Hill today to discuss his $3.6 trillion budget face to face with some skeptical Democrats, a day after he addressed the nation in a prime-time news conference.
