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Politics | 11/24/2008 10:15 am

Barack Obama Backs Away From Tax Cuts (the Rich Rejoice!)

By The Staff at wowOwow.com
© AP

Good news for some rich folks.

Obama might not be raising tax rates on high earners as soon as initially anticipated.

Obama’s top adviser, William Daley, said on Sunday’s "Meet the Press" that the future president may "likely" back off from his vow to speed up the elimination of a tax break for the wealthy. This could mean that taxpayers who earn $357,700 annually and pay at a tax rate of 35% will continue to do so until the plan expires in 2010. This original rate was set forth during the Bush administration in 2001. At the end of 2010, the Post reports that the rate is expected to be at 39.6%.

Apparently, Obama has more to worry about on his plate. The meat on his agenda: stimulating the economy.

The Financial Times reports that David Axelrod, Obama’s chief political adviser, said passing a massive economic stimulus package would be the president-elect’s top priority when he moves into the White House in January. This comes as fears deepen that the country’s heading for a "long and severe recession." The AP reports that Obama’s upcoming stimulus plan may not include actions to balance the tax cuts, as Obama originally proposed he would do during his "spread the wealth" campaign messages.

Read more about: Business, Economy, News, Obama, Politics, Taxes, U.S.

86 Reader Comments (so far…) Sign In or Register to comment

gulliver fourmyle
simple—-he doesn’t wish to be dead—-and someone has explained this—-both JFK & Bobbie were presented with ‘the offer you can’t refuse’—-they did—-and they’re dead—-Presidents are expendable vs. the ‘elites’ that truly rule—-if he may not ‘navigate’ quicksand? 2 seconds to live—-this country seems to think it has ‘democracy’—-never did—-a republic? never did—-rather a ‘tier-of-elites’—-very diffy from the propaganda your schools taught—-what you have is an oligarchy—-not as bad as Mexico, but not what you think—-i doubt Obama had any idea of this mess, or its dangers. if he had majored in political science vs. law, he would have a better idea of his ‘promises’—-but being naive of political history? now he must learn ‘on-the-fly’—-good luck—-any prez is the ‘tail-of- the-dog’—-and hence easily severed—-i think it’s ‘sinking-in’—-to expect him,anyone, to turn this mess around, and live? w/o compromise with the true powers? were ya born last night?
By gulliver fourmyle on 11/25/2008 12:13 am
Okpulot Taha
John G is taxed, “Why should I pay 35% and Bill across the street pay 15%? FLAT TAX!” Why should our hard working family pay a cumulative total 53% tax while Suzie Creamcheese downhill pays no tax? Couple years back, as I will in the future, I send out hundreds of letters to politicians and others of influence strongly urging abandonment of our current income tax system to be replaced with a simple retail tax. I proposed a 25% retail tax, with no local nor state retail tax. Of this 25% tax, 10% to the states and 15% to the Feds. This is a system which treats all equally, and a system easy to adjust according to immediate economic conditions. More revenue is needed, adjust this retail tax upward a percentage point. A need to provide tax relief, lower this tax a percentage point. This eliminates any need for all these complex and unfair tax manipulations taking place currently and provides a “quick response” to changing needs of America. This retail tax eliminates tax fraud, such as offshore accounts. Only way to avoid this tax is to not buy anything. I would estimate this would double our tax revenue for states and the Feds, knowing upwards of ten-trillion dollars is being shipped out or kept out of America to avoid taxes. Local governments currently raise enough money through property taxes, city services and special assessments we see on our property tax bills and, often, on our city provided utility bills. Some argue this is unfair to the poor. Untrue. The poor buy less thus would pay less taxes. The poor also enjoy government assistance programs. The rich buy more thus would pay more taxes. McCain proposed something similar, a tax structure of paying 15% or 25% depending on income level. No deductions, no exemptions, simply 15% or 25% based on earned income. His is or would have been a good introduction to a flat retail tax. His is a common sense approach. A nationwide retail tax would solve our economic woes and keep our economy healthy. However, politicians, including Obama, are way too stupid to even consider this type of common sense. Nevada does not have an income tax, yes? Okpulot Taha Choctaw Nation
By Okpulot Taha on 11/25/2008 1:01 am
Okpulot Taha
You know the women who sponsor this website have sufficient power and connections to effect a flat retail tax. Women of this site have an ability to bring about many positive changes for America. This ability is being wasted and none, literally none listen to us amongst the unwashed masses. Okpulot Taha Choctaw Nation
By Okpulot Taha on 11/25/2008 1:07 am
Okpulot Taha
Marjorie tells me a sweet truth, “For too many, the lie soothes the pain; better the lie, no matter how open to challenge, than the truth which offers nothing.” Yes, ma’am. Western peoples both expect and demand others tell them lies, soft sweet lies. Not only do those people expect to hear lies, they also lie to themselves, seemingly on a daily basis. “Sure, Mildred, we can afford this big home and lots of toys!” Yes, sir, sure enough until the “Bank Owned” sign is planted out front. Within my traditional culture, Marjorie, “truth” enjoys a sacred status. Our traditional peoples are well known, historically and today, as truth speakers. There are times I am sure my persistent truth speaking is what has many angry with me. We American Indians know survival depends on truth. America is not surviving because our country is, today, based upon lies which we demand be told to us. So whisper me sweet lies, soft sweet lies. Okpulot Taha Choctaw Nation
By Okpulot Taha on 11/25/2008 1:18 am
Marjorie C.
Okpulot: Not only do those people expect to hear lies, they also lie to themselves, seemingly on a daily basis. I’ve always found this amazing. To lie to someone else is one thing, to believe the lies yourself is a step into la-la land. I agree with your take on government — it has become way too big, way too corrupt. When we can select for president a man with no experience whatsoever in anything but running for president, we’ve bought into a Disney World fantasy complete with wishes you wished could come true.
By Marjorie C. on 11/25/2008 7:04 am
Okpulot Taha
Merrell comments, “Perhaps people are annoyed with you for other reasons your ‘truth’ cannot allow you to see.” I am most certain yours is a truth. Okpulot Taha Choctaw Nation
By Okpulot Taha on 11/27/2008 11:49 pm