Well, I called this one (not on this blog, but another website I post on) over a month ago, when he said that a recession may make him delay the repealment of the Bush tax cuts. Well, this morning on Meet the Press, an advisor on his transition team, Bill Daley (Secretary of Commerce under President Clinton), said that it’s looking like Obama isn’t going to push for them to be repealed, but just let them expire in 2011. Here’s the transcript courtesy of Meet the Press:
MR. BROKAW: And let’s talk about taxes for just a moment ,if we can. The New York Times is reporting today that “in light of the downturn, Mr. Obama is also said to be reconsidering a campaign pledge: his proposal to repeal the Bush tax cuts for the wealthiest Americans. According to several people familiar with the discussions, he might instead let those tax cuts expire as scheduled in 2011, effectively delaying any tax increase while he gives his stimulus plan a chance to work.” Is that your understanding of what may happen?
MR. DALEY: That looks more likely than not, Tom, but the president-elect is very committed to the fact that there must be greater equity in, in the responsibility of, of taxes in this country. We must bring tax relief to the middle class. He has said this now for two years as he’s been out there on the campaign, and he’s going to deliver on that. That’s an integral part of his economic recovery package next year is to bring some tax relief to the American people and the vast majority who are in the middle class, not those of us who do much better than that. So I, I think he’s going, he’s, he’s got a great team he’s putting together: Tim Geithner, Larry Summers, a whole host of other people, that he’s charged with putting this plan together. I think he’s gone out to get the most competent, qualified, experienced people to put this together. We are, as Secretary Baker said, in the middle of an unprecedented economic crisis. We will come out of it, but these are times that no one’s ever seen, and it’s a global issue. And of all the people he’s put forward in these major jobs are very experienced in a global setting of economics also.
MR. BROKAW: And, Secretary [James] Baker [Secretary of the Treasury under President Reagan], keeping the Bush tax cuts in place, will that be central to winning any Republican support for a massive public stimulus program of some kind?
MR. BAKER: Well, it depends on which you mean by keeping them in place. If that means he’s not going to try to repeal, not going to try to increase taxes during this very critical next two-year period, then, yes, it would be and probably would be if it means that he’s going to abandon the idea of, of keeping them, keeping taxes low thereafter. But let me, let me second what, what Secretary Daley said about the team that the president-elect is putting together. I think he’s appointed some extraordinarily capable people, and we’re going to see some more, as I understand it. And I think he’s to be commended for that. Bill Daley knows and I know that any new president has got to surround himself with competent advisers, and that’s even more so today when we’re facing the kind of economic crisis we’re facing.
May I say one other thing, Tom? I, I think that a lot of what we’re seeing out there today is a lack of confidence, and the president-elect and, as a matter of fact, the current president have to face this problem over the next 60 days. It’s unfortunate that we’re in this interregnum of a transition, but I think that something very useful might even come out of the two of them sitting down together and addressing not the, not the midterm, not the mid and long-term problem that we face that was the subject of the president-elect’s speech, but the–but facing–but addressing stability of our financial system and to see if there isn’t something that they could do jointly, together, over the next 58 to 60 days that would help us make sure that the–that the financial system is stabilized and, and secure. Because if that goes under, then this thing is even, believe it or not, going to get worse. And I think just the mere fact of their sitting down together and seeing if there’s not one thing that they could come together on would do a lot to restore confidence and, and remove the anxiety and fear that’s out there.
Well, now this is interesting, since Senator Obama has said that he would pay for his health care plan with the money that would come in from getting rid of the Bush tax cuts. So, this will set him back 2 years which will be $100-$135 billion.
Like I’ve said before, Obama is all talk, on taxes, on Iraq, and on a lot of what he says. He was elected on promises that he never intended to fulfill, but most Americans didn’t realize that. Oh well, in 4 years, people will be begging for a Republican in the White House. Either that, or they’ll excuse Obama by saying, “His problems were Bush’s fault.” Knowing American voters, I’m scared that it may be the latter.