Comments for Yes, Obama Will Have to Raise Your Taxes

Yes, Obama Will Have to Raise Your Taxes

2009-07-07T18:29:38Z

The problem with trying to pass a $1.3 trillion universal health care plan, on top of raising the price of carbon emissions, on top of spending over a trillion dollars to stimulate the economy is that, as they say, a trillion here and a trillion there, and pretty soon you're talking about real money. So let's talk about real money. Where're we gonna get some? Your paycheck. How're we gonna do it? Raise your taxes.
]]> So I'm pleased to see the Economix blog is putting together a motley crew of economists and journalists who have said just that: Taxes are coming. With federal revenue less than 19% and federal spending surging over 20% with the bailouts, it stands to reason that even if health care reform miraculously turns deficit-neutral in a decade, we're going to need politicians to get serious about higher taxes -- and maybe not just for the rich.

Enter Economix. The blog's "Club Wagner" -- named after 19th century economist Adolf Wagner -- is a group of diverse journalists and economists who have publicly stated that taxes in the United States must rise, eventually. There is no consensus on an explicit time line for raising taxes, at least in this debut mission statement. Nor is there a specific breakdown of which taxes they would like to see increased.

Indeed, the group is somewhat all over the map. You've got Peter Orszag, Obama's budget director, alongside Douglas Holtz-Eakin, Sen. John McCain's former economic adviser, alongside a few middle-of-the-road senators who aren't exactly fighting over Club Wagner bumper stickers to paste to their minivans. Indeed the members who are in government -- Orszag, Sen. Judd Gregg (R) and Sen. Kent Conrad (D) -- are all pretty sketchy in their "support" of higher taxes. So it's a big tent, but the occupants are few and far from enthusiastic.

But it's a start. I would join the club. Would you?

Comment from Steve Koch on 2009-07-07

2009-07-07T18:31:45Z

Raising taxes in a recession will hurt the economy and is exactly the wrong thing to do. Obama took a weak economy and is killing it. You might mention that Economix is an NYT (i.e. primary media organization of the Democrat party) blog. I also wouldn't characterize support for higher taxes as a big tent movement.

Comment from Derek Thompson on 2009-07-07

2009-07-07T18:38:01Z

Hi Steve, a couple things I would say. First, I don't think they're calling for immediate tax increases. Or, to be sure, I am not. They're (and I am) just acknowledging that, eventually, we're going to have to look to tax increases to cut into the deficit. You're right that I should have identified the source of the Economix blog -- I wasn't trying to conceal its affiliation with the NYT, which would be silly and besides the point, because I don't find Economix to be highly partisan in one way or the other. And, although big tent is usually reserved for larger movements, I do think that it's striking how many of the initial members of the "Club" are Republicans. Maybe they're being political, but I'd like to hope that they're being realistic.

Comment from dsr on 2009-07-07

2009-07-07T20:14:23Z

Glad to see some economists statign the obvious. I wish more of them would take the point one step further - not only will taxes go up, but they will have to go up on EVERYONE, not just the "rich." Of course, if this hapens during Obama's presidency, he will have broken one of his fundamental campaign pledges (that no one making less than $200k will see their taxes go up).

It's always seemed absurd to me when people talk about a lasting shift in American voter preferences in favor of greater government intervention (health care, etc). If Americans had voted for more government AND the tax increases to pay for it, then that argument might be plausible. But they did not. They voted for more government with THE OTHER GUY picking up the tab. and that is what Obama and the Democrats are deperately trying to provide before people wake up to their snake-oil salesmanship.

Personally, I'd rather keep more of my money, but I hope the tax increases happen sooner rather than later. Otherwise we will end up with a Great Society-sized expansion of government foisted on the American people in a time of crisis by fraud.