Jul 11, 2012 3:25 PM GMT
Why would the president oppose raising taxes when economic growth was 5.6 percent but propose raising taxes when it’s at 1.9 percent? When it’s politically advantageous to be seen as raising taxes on the rich.
If there’s another answer to that question, it’s not obvious – or not obvious to me, anyway. But that’s precisely what Barack Obama has done.
On January 29, 2010, with an economy he described as “somewhat fragile,” Obama said that the “consensus among people who know the economy best” was that raising taxes was one of two ways to damage the economy. At a House Republican retreat in Baltimore, Maryland, Obama rejected a Republican proposal to freeze spending at pre-stimulus levels and warned against the “destimuluative effect” of tax hikes.
"I am just listening to the consensus among people who know the economy best. And what they will say is that if you either increased taxes or significantly lowered spending when the economy remains somewhat fragile, that that would have a destimulative effect and potentially you'd see a lot of folks losing business, more folks potentially losing jobs. That would be a mistake when the economy has not fully taken off."