White House Plays Down Tax-Raising Talk

By: Chip Reid
Topics: White House

(CBS)

Candidate Barack Obama's firm pledge not to raise taxes on the middle class was one of the clearest promises of his campaign.

"Under my plan, no family making less than $250,000 a year will see any form of tax increase," he said. "Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes."

He repeated it countless times, both as candidate and president.

That's why it was so stunning – and created such a furor on cable and in the blogosphere -- when BOTH Treasury Secretary Tim Geithner AND Larry Summers, top economic advisor in the White House, seemed to fudge on the issue on Sunday's talk shows.

Here's a key part of the exchange between Bob Schieffer and Larry Summers on CBS' "Face the Nation":

SCHIEFFER: No tax increases for middle-income Americans?

SUMMERS:...There is a lot, though, there is a lot that can happen over time. But the priority right now, so it is never a good idea to absolutely rule things -- rule things out no matter what. But what the president has been completely clear on is that he is not going to pursue any of his priorities -- not health care, not energy, nothing -- in ways that are primarily burdening middle-class families. That is something that is not going to happen.

Wait a minute: "PRIMARILY" burdening middle-class families? I thought it was NO tax hikes for middle-class families.

And it's never a good idea to absolutely rule things out? Isn't that what the president has done again and again and again on middle-class tax hikes?

Geithner was equally evasive on ABC's This Week with George Stephanopoulos.

So were they intentionally opening the door just a tiny bit? Did the president approve this? Is it the beginning of reversing the president's middle-class tax promise, which was a foundation stone of his campaign?

Today White House press secretary Robert Gibbs tried to lay the issue to rest.

Facing a barrage of questions at the daily briefing, Gibbs said the president "has made a very clear commitment to not raise taxes on the middle class." Does that mean he's standing by his promise NOT to raise taxes on families making less than $250,000? Gibbs answered yes to numerous versions of the question.

Then why didn't Geithner and Summers say that yesterday, CBS News's Mark Knoller asked. "They left it to me," Gibbs told us.

Gibbs said the president reiterated his position – that he won't raise taxes on families making less than $250,000 a year – in the today's Daily Economic Briefing, with Geithner and Summers in attendance. Gibbs denied that the comments represented a "woodshed" event.

Case closed? It appears so for now. But the next time anyone in the administration says anything that can be remotely interpreted to suggest they're backing away from that promise, you can bet the press corps, the blogs, cable TV, and a big chunk of the American people will pounce.

(CBS)

Chip Reid is CBS News' chief White House correspondent.

Chip Reid
Chip Reid is CBS News' national correspondent.

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by endurorob August 4, 2009 7:54 AM EDT: Obama campaigns saying anyone making under $250k will not see a tax increase. On the sunday circuit a couple of his staff members seem to be hinting that tax increases for the middle class may be coming. Mouth piece Gibbs says their will be no tax increase for the middle class. Other Obama campaign promises: 1. Their will be no lobbyists in my administration. I know of at least two. 2. We need earmark reform and I will go line by line to ensure we are spending money wisley. Not only has he signed bills containing thousands of earmarks he hasn't even read what he signed. So how can we believe his promise of no tax increase for the middle class especially with what Geithner said this weekend.; Reply to this comment


by bluedenmant August 3, 2009 10:18 PM EDT: Alien view wrote: "There has never been anyone in the White House at any time that has created such an army of staffers whose sole duties are the facilitation of the First Lady's social life. One wonders why she needs so much help, at taxpayer expense, when even Hillary, only had three; Jackie Kennedy one; Laura Bush one; and prior to Mamie Eisenhower social help came from the President's own pocket."

...you left out Nancy Reagan and her million dresses by Galanos that each cost more than the national debt (get the picture?)...if you were a member of her WH staff, you can only imagine how she ordered them around. Facts are facts. You Republicans are so myopic and memory-dead, but we all know your mantra has always been - do as we say, not as we do - You're all screaming about tax/spend Democrats - WHERE was your VOICE when Dubya was ratcheting up the national debt at lightning speed? You all loved the Bush tax rebates, which left us with, guess what...no more money for the infrastructure. I hope there are potholes in front of all your homes; the least you deserve!!!; Reply to this comment


by bluedenmant August 3, 2009 9:53 PM EDT: One has to laugh when you read all the whining and complaining and petty beefs the GOP is braying about; it's very reminiscent of the other's side's gripes about Dubya and his 'accomplishments.' It would even be much funnier if it wasn't all so pathetic. The truth of the matter is both parties are so far apart in their beliefs as to how a country should be run that neither is right about anything except their unconditional disdain for one another...what a country!; Reply to this comment


by swin5 August 3, 2009 9:03 PM EDT: Some southern democrats are already considering jumping off the Obama bandwagon. More will jump off as they see their re-election in jeopardy in 2010. Even more will jump off as they see how hopelessly messed up Obama makes this country. And then, finally, Hillary will jump off and announce that she will challenge Obama for the party nomination in 2012. And this time, she will win and it won't even be close. I would never EVER vote for Hillary but you have to admit that she warned us about how grossly incompetent this goof-nut was and now we are paying the price.; Reply to this comment


by swin5 August 3, 2009 8:58 PM EDT: 'When you talk about the democrats, all you get is tax, tax, tax, and spend, spend, spend.' - Ronald Reagan; Reply to this comment


by starleo146 August 3, 2009 8:56 PM EDT: Why are the Republicans so afraid of Obama and the Media as well, afraid this President might help the little guy in this country who have been so forgotten by Reagan and the Bushes, he has a big job trying to straighten out the budget with those dumb bunnies running the country. Boy how2 easy we forget. If anyone thinks he can straighten in 6 months what they did in 24 years you are crazy Clinton left him a surplus but he blew that in 100 days so just wait and see before you judge; Reply to this comment


by swin5 August 3, 2009 8:46 PM EDT: Seriously, folks, are you finally starting to realize that this empty suit community organizer-in-chief is grossly incompetent and handed you a bunch of BS during the last election? I was born when Harry Truman was president and I can't ever remember a president who messed up so much and so many times in such a short period of time as this goof-nut. Count them, and I know I forgot some:
1. Flying his planes low over New York City.
2. Almost releasing photos that would endanger our troops on the field of battle.
3. Blowing it during the protests in Iran.
4. Being made a fool of by North Korea and their missiles.
5. Sotomayor
6. Porkulus bill.
7. Cash for clunkers - get $4500 now, pay much more in taxes later.
8. Socialist takeover of the financial industry.
9. Socialist takeover of the auto industry.
10. Insulting police departments all over the country with his racist remarks.
11. Traveling around the globe apologizing for America.
12. Lack of support for Israel and cozying up to the Islamic states.

I'm sure you can add to the list - feel free to do so.; Reply to this comment


by starleo146 August 3, 2009 8:43 PM EDT: tell us again media what the president said on the campaign trail, course that was in Oct 2008 before the big crush of Bush economy and when he got there he had trillions already in debt and still crashing tell us again media. You know Media if you had scrutinized Bush as hard as you are Obama maybe we wouldn't be in this mess with economy, but I think Obama has it in line now, don't give him any credit now media; Reply to this comment


by zonkzilla August 3, 2009 8:37 PM EDT: It doesn't matter what President Obama says or does, the right wing fascists and their radio propaganda ministers will lie and do everything possible to try and make sure our democratically elected President fails and takes working people with him.
See, fascists hate democracy, they want a dictatorship and will only support the dictator they put in power which is why they hate Obama so much.
To me the right wing Obama haters who try and make our freely elected President fail and spew lies and hate are nothing more than traitors.; Reply to this comment


by swin5 August 3, 2009 8:34 PM EDT: I don't care if he taxes everybody at the rate of 50%. Just drop the idea of taxing our pepsi or coke.; Reply to this comment