Obama’s Words

According to President Obama, 95% of Americans will have no tax increases under his Administration.

if your family earns less than $250,000 a year, you will not see your taxes increased a single dime. I repeat: not one single dime. In fact, the recovery plan provides a tax cut – that’s right, a tax cut – for 95% of working families.

Since the speech at the Capital, I keep hearing about the possibility of a change to itemizing mortgage interest on one’s tax form. I searched for that and came up with the following:

The tax increases would raise an estimated $318 billion over 10 years by reducing the value of such longstanding deductions as mortgage interest and charitable contributions for people in the highest tax brackets. Households paying income taxes at the 33% and 35% rates can currently claim deductions at those rates. Under the Obama proposal, they could deduct only 28% of the value of those payments.

The thing is, the 33% tax rate kicks in long before the President’s arbitrary cut-off of $250,00. According to the IRS, a single person is taxed at 33% beginning $164,555 and a married couple filing jointly pays 33% at $200,300.

That means that if the mortgage interest change is made, those folks who earn less that $250,000 will only be able to deduct their mortgage interest at a rate of 28%, not 33%.

By my calculation, that means they will be paying more taxes.

If they pay more taxes, that means President Obama’s claim that 95% of working families will pay “not one single dime” more is not true. Unless, of course, we have to parse his words ala President Clinton. Since it will assuredly be more than a single dime these folks will be paying, perhaps he is correct.

When taken in conjunction with Obama’s slinking out of his campaign promise of passing bills with no earmarks.  In April 2008 Candidate Obama stated:

We can no longer accept a process that doles out earmarks based on a member of Congress’ seniority, rather than the merit of the project.

On Thursday President Obama stated:

I want to pass a budget next year that ensures that each dollar we spend reflects only our most important national priorities

On Wednesday, the House passed a spending bill with nearly 9,000 earmarks that the President is expected to sign once it reaches his desk.  According to Obama’s press secretary, there is no hypocrisy:

What may be next week’s bill is last year’s legislation

There will never be any hypocrisy if one asks for rationalizations.  The plain fact of the matter is that five weeks in, President Obama is still playing the Blame Bush game.  Furthermore, he is undercutting his credibility a great deal.  This is the definition of hypocrisy.

Then again, they’re just words.

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