Tax increases still on Obama’s horizon

White House officials say the second stage of the debt-ceiling process could yet yield a “grand bargain” by January — complete with tax increases.

“We did not get the ‘grand bargain’ upfront, and we well know why,” White House spokesman Jay Carney said during a midday press conference. But President Barack Obama “will continue to push” for that big deal, and “it is our expectation that the package will include revenues,” he said.

White House officials have long used the term “revenues” as shorthand for tax increases and the expiration of tax breaks.

The second stage of the complex deal currently on the table requires deficit reductions of $1.5 trillion over a decade. “Are we doing that only by asking sacrifices from middle class people … or [sacrifice from] oil and gas companies, corporate-jet manufacturers or the wealthy?” said Carney.

“That is a debate he [Obama] is looking forward to,” Carney said.

GOP legislators and their allied advocacy groups will oppose this continued push for tax increases. House Speaker John Boehner, for example, quit the debt-ceiling negotiations hosted by Obama after the president pushed for $400 billion in tax increases over the next decade.

For several weeks, Obama has been pushing for a deal that would reduce the 10-year deficit by roughly $4 trillion.

This goal would burnish his campaign-trail claim to be be a consensus builder, and perhaps boost his declining support among swing-voting independents. A Pew poll from late July showed that 54 percent of independent voters disapprove of Obama’s job performance.

Officials also cite polls showing majority support for some level of tax increases.

The deal struck yesterday promises to reduce the 10-year U.S. deficit by roughly $2.4 trillion. Americans would, however, still face a deficit of more than $7 trillion over the same decade. “Do we still have to borrow money to pay out bills? Yes,” Carney said, while saying that the debt-ceiling deal “very significantly” reduces the problem.

  • http://pulse.yahoo.com/_EI5BFYHGBU3RLZJ2F5HGGGN7RA Edward

    Tax the rich, tax the rich……………………..BS!!!!!!!!   5-% of American do not pay any taxes.  It is time that all Americans (top to bottom) paid their fair share of taxes……………………millions of American received back money and they DO NOT PAY INTO THE SYSTEM…………..WHY REWARD THOSE PEOPLE!   Revise the IRS tax code and let EVERY WORKING MAN/WOMEN P[AY TAXES.

    • Anonymous

      You’ve been spun into believing a deception.  Everybody who works pays FICA,  everyone who buys anything pays sales tax, everyone who owns a house pays property taxes.  Landlords are going to factor property tax into rental rates, so even renters pay indirectly.  This is the same kind of class warfare tactics conservatives accuse liberals of!

      • miskky

        You are the one spinning a deception.  The taxes the dems and obama want are federal income taxes.  None of the taxes you cite go to operate the federal government. period!!!  And far too many people don’t pay any income taxes and far too many get money back they never paid in.  About 50% of Americans pay no federal income taxes.  And that is a fact rather you liberals want to admit it or not.

  • chattycathy

    “The deal struck yesterday promises to reduce the 10-year U.S. deficit by
    roughly $2.4 trillion. Americans would, however, still face a deficit
    of more than $7 trillion over the same decade.”Excellent debt cutting measure!

  • johno413

    So, here is how it falls on my ears:  The final deal is pretty undesirable for the Tea Party right and the far left.  It is full of political hand-waving and illusions.  Both sides vow to maintain their positions even after this passes.  so, in essence, we have a debt and tax debate guaranteed to occupy the print media, broadcast media, and e-media with pundit jaws-a-flappin’ for at least the next year.  


    The next election will be a brutal blood bath, I predict.