Obama Revisiting His Tax Plans

WASHINGTON (AP) -- Democrat Barack Obama says he would delay rescinding President Bush's tax cuts on wealthy Americans if he becomes the next president and the economy is in a recession, suggesting such an increase would further hurt the economy.

Nevertheless, Obama has no plans to extend the Bush tax cuts beyond their expiration date, as Republican John McCain advocates. Instead, Obama wants to push for his promised tax cuts for the middle class, he said in a broadcast interview aired Sunday.

"Even if we're still in a recession, I'm going to go through with my tax cuts," Obama said. "That's my priority."

What about increasing taxes on the wealthy?

"I think we've got to take a look and see where the economy is. I mean, the economy is weak right now," Obama said on "This Week" on ABC. "The news with Freddie Mac and Fannie Mae, I think, along with the unemployment numbers, indicates that we're fragile."

Obama was referring to the two mortgage companies taken over by the federal government Sunday in what could become a huge taxpayer bailout. The nation's unemployment rate climbed to 6.1 percent in August from 5.7 percent the month before, the government said last week. It was the first time in five years that the unemployment rate had topped 6 percent.

Obama and McCain have sparred over tax policy for months. Obama says McCain wants to continue Bush administration policies, noting that McCain had voted against the Bush tax cuts but then embraced them as he campaigned for the Republican presidential nomination.

"John McCain likes to talk about fiscal responsibility, but there is no doubt that his proposals blow a hole through the budget," Obama said.

McCain has repeatedly hammered Obama over taxes in an attempt to paint him as a typical tax-and-spend liberal. McCain wants to make permanent the Bush tax cuts, which are set to expire at the end of 2010.

"We can get this economy back on it's feet," McCain said in an interview aired Sunday on "Face the Nation" on CBS. "Don't raise their taxes. Get it going again. Americans are hurting in a way that they have not hurt for a long time."

The Tax Policy Center, a think tank run jointly by the Brookings Institution and the Urban Institute, concluded that Obama's tax plan would benefit middle-income taxpayers more than McCain's. However, Obama would raise payroll taxes on taxpayers with incomes above $250,000, and he would raise corporate taxes. Small businesses that make more than $250,000 a year also would see taxes rise.

McCain's plan cuts taxes across all income levels. It would cut taxes for those in the top 1 percent by more than $125,000, raising their after-tax income an average 9.5 percent, the center concluded.

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  • by Obama Snake Oil Co Location: Washington on Sep 11, 2008 at 12:20 PM
    Economics 101; if you increase taxes on the rich, even more than Bush already has, then they stop hiring and lead to bad economy. Ronald Reagon termed the prhase "trickle down" for a reason, it brought in jobs and got the economy going strong. So, now we go back to the Jimmy Carter era already? Tax the weathy? This means $$$ could loose his job and it will hurt small business. Wow, Obama really needs to take Econ101. Also, the liberals are so desperate to get Obama elected that these are the points they push to make it sound like Robin Hood. Well, its not, its Robber from the Hood. Obama=Carter, no question about it. VBush, This democrat does his homework that is why I am voting country not party. Its the liberals that we need to get rid of. You have seen my posting before and I am conservative. I think you will be surprised how many democrats will vote for McCain Palin as they have out country's back. Obama was a bad choice and so was Biden, both poster childs for bleeding liberals.
  • by VBush Location: MHCY on Sep 8, 2008 at 10:51 AM
    Red State; Well said! He moves farther right EVERY time he opens his mouth. What the liberals don't seem to get is that there are not as many of them as the 'lame stream media' makes it seem. If it weren't for the media, they would be quite a silent bunch. I know many Democrats, and if you ever get one to speak rationally and point out some basic truths, they really are more conservative than they even believe themselves to be. Most of them just don't do much homework and make their decisions based on 30 second political adds and just aren't educated on the candidates or the whole process.
  • by $$$ on Sep 8, 2008 at 10:17 AM
    It says Obama has no plans to extend W's tax cuts for the very weathly after their expiration date. He plans to still push for tax cuts for the middle class..My guess is that most of you, like me, fall in the middle class. Maybe some of you are in the VERY RICH bracket. If you are I agree with Obama. You could afford to pay a little more so the middle class won't have to suffer as much. OBAMA?BIDEN
  • by Red State Location: Washington Co. on Sep 8, 2008 at 08:04 AM
    Of course, he will "revisit" and "reassess" and "rethink" his tax policy. He sees that McCain is ahead in the polls. He couldn't order a happy meal without a focus group, so he has to adjust his plan to match John McCain. Watch, about this time next week, when he is questioned on this latest flip-flop, he'll say "What I said, and what I've always said, is that I support Bush's tax cuts". This phony will say whatever it takes to get elected.
  • by Anonymous on Sep 7, 2008 at 02:05 PM
    Hey look..another flip flop! lol

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