Obama Endorses Income Tax Surcharges for Health Care

I caught a good portion of Obama’s press conference this evening. As usual it was a virtuoso performance so far as performances are judged. Realistically, it didn’t add anything new to the debate and he clearly now views this as a campaign to get public opinion on his side.

I could go on about this but let me just concentrate on one facet — the tax on the wealthy to help fund it. I thought he might duck this one but he came out full force in favor of the concept.

From Politico.com, here’s what he said:

Obama endorsed a House committee’s plan to fund part of the new program by imposing a surtax on families making over $1 million a year – but insisted he would not support any bill that helped fund the $1 trillion plan with a tax on middle-class families.

“To me, that meets my principles,” Obama said of the so-called millionaires tax, while indicating he is also open to other funding proposals. “That is not being shouldered by families that are already having a tough time.”

That’s probably a quote you want to file away. Millionaires and even semi-millionaires are not dumb enough that they will be unable to work their way around the new tax. If they can’t, they certainly aren’t going to work hard to maintain incomes that will approach marginal tax rates of 60% in some jurisdictions.

It will be the same old Washington story. Promise to take it from those who have much to give and when that doesn’t work out and you’re too deep into the spending to do anything else push it down to the middle class. You can take that scenario to the bank.

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About Tom Lindmark 401 Articles

I’m not sure that credentials mean much when it comes to writing about things but people seem to want to see them, so briefly here are mine. I have an undergraduate degree in economics from an undistinguished Midwestern university and masters in international business from an equally undistinguished Southwestern University. I spent a number of years working for large banks lending to lots of different industries. For the past few years, I’ve been engaged in real estate finance – primarily for commercial projects. Like a lot of other finance guys, I’m looking for a job at this point in time.

Given all of that, I suggest that you take what I write with the appropriate grain of salt. I try and figure out what’s behind the news but suspect that I’m often delusional. Nevertheless, I keep throwing things out there and occasionally it sticks. I do read the comments that readers leave and to the extent I can reply to them. I also reply to all emails so feel free to contact me if you want to discuss something at more length. Oh, I also have a very thick skin, so if you disagree feel free to say so.

Enjoy what I write and let me know when I’m off base – I probably won’t agree with you but don’t be shy.

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