Obama Administration: Maybe We Just Won’t Collect The Taxes If We Go Over The Fiscal Cliff

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Unless Congress comes to terms on a deal before the 1st of next year, all Americans would see significant tax increases due to the expiration of the Bush tax cuts (among other tax reductions). Now the Obama administration is hinting that, should it happen, they won’t necessarily collect those higher tax rates for everyone.

The White House has the power to temporarily protect taxpayers from middle-class tax hikes even as upper income rates rise if Congress does nothing and all of the Bush-era tax rates expire in January.

Experts and lawmakers alike agree that Treasury Secretary Timothy Geithner has the power to adjust how much is withheld from paychecks for tax purposes — for all taxpayers or just for some.

By doing so, Geithner could ensure paychecks reflect the White House position that wealthier taxpayers with annual income higher than $250,000 see their taxes rise. Geithner at the same time could leave withholding tables where they are for the middle class, ensuring those workers don’t see a higher cut from their paychecks.

This is a dangerous game, because the Obama administration refusing to collect all the taxes owed by Americans doesn’t necessarily absolve them of the obligation to pay those taxes under the law.

How would you like to get hit with a bill for six months worth of taxes after a unilateral moratorium imposed by President Obama?

Not to mention the uncertainty. It’s bad enough that the Bush tax cuts have been temporary in nature since they were first passed (not to mention Obama’s “Making Work Pay” tax cuts), but now we add another moving part to the problem, hinging on whether or not the President wants to impose the tax rates approved by Congress?

This is a seriously bad idea.

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Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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