Subscribe to our newsletter

Obama: Licensed to Tax

In his weekly address on Saturday 8 December, Obama said, “…after all, this was the central question in the election,” Adding, ” A clear majority of Americans, Democrats, Republicans and Independents, agreed with a balanced approach, to ask something from everyone; but a little more from those who could afford it.”

In Bangkok, Thailand Economist Shayne Heffernan said in a note to traders today, “in the history of civilization, every high tax, high debt society has collapsed, America is now on that path.”

The US president was speaking on the topic of raising taxes on the wealthy was couched in his belief that he gained a mandate to raise taxes on the “Rich.” Obama has not wavered on his undertaking to boost taxes on the prosperous since he was reelected.

Obama used the address to urge Republicans to join with him and Democrats with their votes in support of his plan which he says would prevent an automatic tax increase on all Americans making less than $250,000.

The US Senate, with a slight majority of Democrats, has passed the bill, but, Republicans are not yet on board for a tax hike.

With the F iscal Clif deadline on top of lawmakers, and what the president defines as “so much noise and opinions,” the president warned that the important issue of the debate might be drowned out.

The president defined the debate as follows:

1. Middle-class tax cuts will expire at the end of the year.

2. Inaction will result in a tax hike for all Americans on 1 January.

3. The tax increase average, for a typical family, would be approximately $2200.

Interested in Investing in Asia? Hedge Funds, Real Estate, Trading, Research, Advice, Data Apply Now

Obama stressed he may be willing to compromise on issues important to House Republicans. But, he firmly said, “We are going to have to ask the wealthier Americans to pay a higher tax rate. That is one principle I will not compromise on.

Recently, Bill Woodard, investigative journalist and author, had a warning of his own when he spoke on “The O’Reilly Show,” about leadership. “If the United States is allowed to fall off the Fiscal Cliff, Mr. Woodard predicted, “It’s going to be an economic catastrophe; it is going to be a leadership catastrophe.” He posited the real issue as a question: “Do we have the financial house of the US government in order?”

The burden of the crisis is said to have been the reason that President Obama asked for a monk to pray; during his recent visit to Thailand, that the US might find the solution before plunging over the F-Cliff. It has also been reported that Obama hosted a private gathering of left leaning MSNBC anchors, including Rachel Maddow, Al Sharpton, Lawrence O’Donnell and Ed Schultz, this past week regarding the tax increase, dubbed the Hippy Confab.

Speaker of the House, Republican John Boehner suggested negotiations were going nowhere; and, that there was no progress to report.

Friday, conservative political commentator and talk show host, Laura Ingraham, offered soothing words for the GOP, who she acknowledged, appear to be stuck between their base and the president’s refusal to budge on raising taxes on the “Rich.”
Ms. Ingraham urged Republicans to avoid an Attitude of Defeatism. Though that may be an accurate description of the current political scenario, Ms. Ingraham pointed out there are many more issues besides the F-Cliff; and it is possible to lose a Battle and still win the War.