Thursday, February 18, 2010

They' re Preparing the Ground for Tax Hikes

President Barack Obama's deficit-reduction committee will consider all options to reduce the government's ballooning deficit, including cutting spending in areas currently protected by the administration's formal budget proposal, or raising taxes for those earning less than $250,000, Peter Orszag, director of the White House's Office of Management and Budget,told CNBC Thursday.

"What the president was very clear about first was that [raising taxes] was not what we proposed, but that we have to let this commission do its work, and that everything's on the table," Orszag said. "All options need to be examined."

When the Commission is being packed with a lead Obama front man like Erskine Bowles, you have to know that the decision on how much to raise taxes has pretty much already been made, as far as cuts, there won't be any but cosmetic, in the actual DC bureaucracy, but they will be real when it comes to retirees trying to get back some of the money they "contributed" to Social Security.

Prepare to be skinned, again.

1 comment:

  1. Ouch - an easy bet that raising taxes will rate higher than cutting spending, at least cutting spending on the biggest ticket items (SSI, medicare, medicaid, and the rest of the unfunded multi-trillion dollar off balance sheet items, thank you FDR and the 'Great Society').

    I can envision that "cutting spending" will consist of reducing the YOY increates of already out of control programs as well as axing out of favor, relatively trivial programs.