As I noted yesterday, Treasury Secretary Tim Geithner refused to rule out the possibility of a middle-class tax hike in the future, and it turns out that he’s not alone:
WASHINGTON (AP) — President Barack Obama’s treasury secretary said Sunday he cannot rule out higher taxes to help tame an exploding budget deficit, and his chief economic adviser would not dismiss raising them on middle-class Americans as part of a health care overhaul.
As the White House sought to balance campaign rhetoric with governing, officials appeared willing to extend unemployment benefits. With former Federal Reserve Chairman Alan Greenspan saying he is “pretty sure we’ve already seen the bottom” of the recession, Obama aides sought to defend the economic stimulus and calm a jittery public.
Treasury Secretary Timothy Geithner and National Economic Council Director Larry Summers both sidestepped questions on Obama’s intentions about taxes. Geithner said the White House was not ready to rule out a tax hike to lower the federal deficit; Summers said Obama’s proposed health care overhaul needs funding from somewhere.
“There is a lot that can happen over time,” Summers said, adding that the administration believes “it is never a good idea to absolutely rule things out, no matter what.”
Of course, that’s very much at odds with what Obama said during the campaign:
“If you are a family making less than $ 250,000 a year……you will not see your taxes go up. Not your Capital Gains Tax, not your Payroll Tax, not your Income Tax, no taxes. Your Taxes will not go up.”
Sound familiar ? It should:
If When the Obama Administration does raise taxes on families earning less than $ 250,000 a year, you can bet you’ll see that clip played over and over and over again.