Obama assures liberals he'll raise taxes on wealthy

[Playinghardball]

WASHINGTON — President Barack Obama assured labor unions and liberal organizations Tuesday that he’s firmly committed to letting tax cuts for higher incomes expire as scheduled at the end of the year, even as congressional Republicans accused him of refusing to propose a specific plan to settle a looming budget crisis.

Obama met with the labor and liberal groups for an hour at the White House, his first extended meeting with anyone from outside his administration since he won re-election a week ago. He told them he’s committed to raising taxes on higher incomes as he negotiates with Congress on avoiding the “fiscal cliff” of automatic tax increases when Bush-era tax cuts expire at the end of the year and automatic spending cuts negotiated during last year’s debt crisis kick in.

“President Obama today strongly reiterated his steadfast commitment to ensuring that the Bush tax cuts for the wealthiest 2 percent finally end Dec. 31 and to protecting the middle class in the process,” said Justin Ruben, executive director of the liberal group MoveOn.org Political Action.

“The president, like we are, is committed to preserving the tax breaks for the middle class and making sure that rich people pay their fair share,” said AFL-CIO president Richard Trumka. “We’re very committed to making sure that the middle class and workers don’t end up paying the tab for a party that we didn’t get to go to and the president is committed to that as well.”

Read more here: http://www.mcclatchydc.com/2012/11/13/174547/obama-assures-liberals-hell-raise.html#storylink=cpy

[ChisolmTrailDem]

1. And when he allows those tax cut extensions to expire, you will see

a booming economy by the time his second term ends, just as it was booming at the end of Big Dawg's second.

[NoOneMan]

2. Increased taxes do not cause an economy to boom any more than cuts do

Its more about how that revenue is used to stimulate the economy.

Likely, it will not be used to stimulate the economy, as the nation is uber-concerned with debt.

This is the age of austerity. Obama's job is to sell it to the American people as an acceptable solution.

[theKed]

5. This is NOT the age of austerity

Austerity has been shown, over and over to woraen depressed economies. We saw it in the 30s, we see it in Greece, Spain, the UK. Austerity only serves to weaken the middle and lower class and increase the wealth gap.

Increasing the middle class' expendible wage (lower taxes) and rolling higher taxes on tge wealthy into the economy strengthens growth. The president doesnt buy Chicago economics, and neither should you.

[NoOneMan]

6. It sort of is, as that is the dominant cultural meme

Yes, I understand it doesn't "work" as far as growing the economy. That doesn't mean it won't be implemented to accomplish other goals

What helps an economy grow is increasing the velocity of capital throughout the system. While putting more money into poor people's hands tends to due this, it can also be negated by taking more money away from higher-income earners that intend to inject it (yes, some of them do spend their earnings, though a far smaller proportion of it than the lower classes). The main key is the velocity of capital though, so if taxes are raised and not used for stimulation, they will have a negative effect on the economy (period); this is the most likely course of action.

The bright side is that any economic activity that is cut via taxation & austerity, the lower the increase in atmospheric carbon.

[pacalo]

3. "Paying the tab for a party that we didn't get to go to". Well said, Mr. Trumka!

[Skink]

4. I am sure next years passing of middle and lower income tax relief...

is going to be very popular.

[dem4ward]

7. Go Mr. President! GO!