Taxing the Middle Class to Pay for Health Care

Posted: Aug 04, 2009 3:54 PM
One of the more notable promises from the campaign trail by President Obama back in 2008 was his promise not to raise taxes by one single dime on anyone making less than $250,000 a year. Cap-and-trade and expiring tax cuts aside, it's taken only six months for the President to publicly consider reneging on his campaign pledge.

As the Wall Street Journal points out:

"Asked about raising taxes on the middle class on Sunday on CBS’s 'Face the Nation,' White House economist Larry Summers wouldn’t repeat Mr. Obama’s pre-election promise. 'It is never a good idea to absolutely rule things out no matter what,' Mr. Summers said—except, apparently, when his boss is running for office. Meanwhile, on ABC’s 'This Week,' Treasury Secretary Timothy Geithner also slid around Mr. Obama’s vow and said, 'We have to bring these deficits down very dramatically. And that’s going to require some very hard choices.'

"These aren’t even nondenial denials. The Obama advisers are laying the groundwork for taxing the middle class while claiming the deficit made them do it."

It must also be noted that Democrats have already raised the cigarette tax and the House has passed a cap-and-trade bill at the President's urging that will directly raise the costs Americans pay for their energy. But perhaps worst of all is a proposal being floated directly by the Obama Administration of a value added tax (VAT).

"So waiting in the wings is the biggest middle-class tax increase of them all: a European-style value added tax, or VAT. This tax would apply to every level of production or service, and it is beloved by politicians in Europe because it raises so much money so easily without voters noticing. Ezekiel Emanuel, a White House aide and brother of Chief of Staff Rahm Emanuel, has advocated a 10% VAT to finance national health care. Look for a VAT to be one of the prominent options when Mr. Obama’s tax reform commission issues its report later this year."

At the end of the day, someone has to pay for the President's health care overhaul, and sadly it's looking more and more that it will be middle-class America picking up the tab.

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