Obama will have a point. Bush gave us tax cuts, but he was forced to add an expiry date. That date is coming up under Obama’s watch. Taxes will be going up, dramatically. Pete Du Pont, writing at Opinion Journal, explains:
The top personal income tax rate will rise next Jan. 1 to 39.6% from 35%, a hike of nearly one-eighth. The dividend tax rate will rise to 39.6%, more than 2½ times the current 15%. And the capital gains tax rate will rise by a third, to 20% from 15%.
I’m pretty certain these tax increases will clobber millions of people earning less than Obama’s magic $250,000. But we are used to President Obama ignoring every promise candidate Obama made, so this is no big deal. Just ask the Scott Brown voters. More importantly, these future tax increases will be factored into every business decision over the next two years. Heck, some rich people will even try to die sooner.
But Obama has an out. Bush shouldn’t have temporarily reduced taxes, so Obama will let them revert back to where they should have been. But it won’t play. Obama should have taken more notice of Scott Brown’s invocation of tax-cutter JFK in his election ads. Unfortunately, Obama’s blame Bush modus operandi precludes him from taking the rational option, i.e. making the Bush tax cuts permanent. Obama, unfortunately, is no JFK, let alone Clinton.