Posted by: edgarvasiliu | August 6, 2009

Middle class Tax Hike?

OK. So Obama, reaffirmed his promise to the middle class for NO new taxes. But I am not convinced at least not in a few years. Treasury Secretary Timothy Geithner and Larry Summers, director of the National Economic Council, said Sunday they could no longer guarantee the middle class will be spared a tax increase. These are economically minded people, they said this for a reason. Look we can’t fund healthcare and a MASSIVE debt without raising taxes or cutting A LOT of services. Which do you think is easier, realistically, thats right taxes. And even if you cut some programs its still not enough. And the rich can’t pay for it all either. The Bush tax cuts will expire soon, then theres talk of an tax increase on top of that then plus state taxes…it could be that the rich in America could pay 50+% in income taxes which rich or not rich is a lot of money. The rich can’t pay for everything what are we going to do make them pay 90% income tax. Even at 50% I am sure that will drive many of them away to I don’t know Canada or somewhere else which actually means we lose money. My long rant is that the rich can’t pay for it all. This isn’t heaven or something, we just don’t have responsibility but tons of benefits but we need to be realistic. Hey, I don’t want to pay more taxes but how else are we going to pay for a bankrupt Social Security, bankrupt Medicare, uberexpensive universal healthcare (potentially), the nation-building of Afghanistan, an insane amount of debt (!), etc get the picture. The Middle Class has to eventually take more of the burden and the Obama economic team knows it. I am assuming Obama will not raise these taxes (if he does) unless he gets a second term for his own political security just because it will be very unpopular and plus we are in a pretty bad recession. Obama can’t be honest about this because the media is going to eat this up. Talk of taxes is taboo during a severe recession which could actually hurt the economy.


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