According to the New York Post's Page Six, President Obama used the term "tea-bagger" in a letter response to a Texas teacher, Thomas J. Ritter. Ritter wrote a letter to President Obama expressing his concerns about the way he, and others in his administration, handles criticism over issues like healthcare.
Ritter reportedly wrote:
“I hesitated to write for fear of some kind of retribution .?.?. I watched you make fun of tea baggers and your press secretary make fun of Ms. [Sarah] Palin which was especially beneath the dignity of the White House .?.?. Do the right thing not the political thing. Suggest a bill that Americans can support.”
Obama responded with:
“I received your letter, an appreciate your concern about the toxic political environment right now. I do have to challenge you, though, on the notion that any citizen that disagrees with me has been ‘targeted and ridiculed’ or that I have ‘made fun’ of tea-baggers. I think a fair reading is that I have gone out of my way to listen to legitimate criticism, and defend strongly the rights of everyone to speak their mind."
To be fair, Ritter used the term "tea-bagger" first in his initial letter to Obama, but you'd think the President of the United States wouldn't repeat the degrading term, especially in writing, without at least condemning it.
H/T Ben Domenech