Obama’s Middle Class Tax Cut – Sort Of

Under the title Obama’s Tax Evasion, The Wall Street Journal shreds Barack Obama’s obvious ignorance about economics and tax policy and his blatant ideological basis for wanting to raise taxes despite his pledge of a tax cut for the middle class.

… the debate was one of the best yet, precisely because it probed the evasive rhetoric we’ve heard from both Democratic candidates throughout the campaign. Nowhere was this more apparent than during the exchanges between Mr. Gibson and Mr. Obama over taxes.
The facts about capital gains rates and revenues are well known to our readers, but we’ll repeat them as a public service to the Obama campaign… (W)hen the tax rate has risen over the past half century, capital gains realizations have fallen and along with them tax revenue. The most recent such episode was in the early 1990s, when Mr. Obama was old enough to be paying attention. That’s one reason Jack Kennedy proposed cutting the capital gains rate. And it’s one reason Bill Clinton went along with a rate cut to 20% from 28% in 1997.
Either the young Illinois Senator is ignorant of this revenue data, or he doesn’t really care because he’s a true income redistributionist who prefers high tax rates as a matter of ideological dogma regardless of the revenue consequences. Neither one is a recommendation for President…
By the way, a higher capital gains tax rate isn’t the only middle-class tax increase that Mr. Obama is proposing. He also wants to lift the cap on wages subject to the payroll tax. That cap was $97,500 in 2007 and is $102,000 this year. “Those are a heck of a lot of people between $97,000 and $200,000 and $250,000,” said Mr. Gibson. “If you raise the payroll taxes, that’s going to raise taxes on them.” Ignoring the no-tax pledge he had made five minutes earlier, Mr. Obama explained that such a tax increase was nevertheless necessary.
In other words he dodged the question, as he so often does with impunity. But thanks to Mr. Gibson’s persistence, for 90 minutes Wednesday night Mr. Obama didn’t get away with it. The voters learned a lot about Mr. Obama, who needs to learn a lot more about taxes and revenue.

Smack!