Monday, August 3, 2009

Taxes, taxes, taxes....................

Last, both Larry Summers and Tim Geithner refused to rule out a middle-class tax hike over the weekend. The two economists, both at the highest ranks of government, were pressed on various Sunday politics talk shows about solutions for the expanding deficit… roll the videotape:
"There's a lot that could happen over time," Summers said, when asked about new taxes on Face the Nation. “It's never a good idea to absolutely rule things out no matter what."
“If we want an economy that's going to grow in the future,” Tim Geithner similarly sidestepped on This Week, “we have to bring those deficits down very dramatically... That’s going to require some very hard choices.” The Treasury secretary refused to rule out broad tax hikes as one of those “hard choices.”
Our take… how can anyone possibly be surprised? President Obama ardently promised the middle class “you will not see any of your taxes increase one single dime” during his campaign… the kind of political hubris that almost assures the opposite. And more importantly, with the size of our debt burden, it’s only a matter of time. The only surprise is that it’s being considered so soon.

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