By Lindsey Ellerson

Mar 25, 2009 4:45pm

Obama Budget Chief on Hill Dems Plan to Scrap Middle Class Tax Cut: “We have two years to figure this out”

ABC News’ Sunlen Miller reports: President Obama’s budget chief hinted that the president’s signature campaign issue – a middle class tax cut – will not likely survive a budget battle with Democrats on Capitol Hill.  On a conference call with reporters in advance of the President’s trip to the hill to speak before the Senate Democratic caucus, OMB Director Peter Orszag indicated that while 98% of the budget mark-ups in the House and Senate are on par with the administration’s budget blueprint, some campaign trail promises, like middle class tax cuts, may get left on the cutting room floor. The administration had tied the revenue raised from cap-and-trade to the Making-Work-Pay tax credit for families – both of which have been brought up as possibilities to be scrapped from the Senate and House budget resolution. President Obama ensured his middle class tax cut is locked in place for the next two years as a part of the stimulus package he signed into law last month, but OMB Director Peter Orszag told reporters today that the White House will have to use those two years to figure out how to keep that tax cut in place for middle class families beyond 2010. “We have two years to figure this out,” Orszag told reporters, pitching the anticipated formation of the President’s Recovery Advisory Board led by Former Federal Reserve Chairman Paul Volker which will examine ways to provide funding for making-work-pay. In an interview later with ABC News, Orszag said that the changes made to the president’s budget blueprint were inevitable, “Yes, on cap and trade and with regard to making work pay the tax credit that will be there for two years there’s going to be some adjustment.  But those were inevitable. There was always going to be some changes made.” Orszag said of course the administration was aware that not “every single comma, decimal point and period was going to be embodied in the budget resolution,” but the modifications that have been made on the hill – they believe – are slight. -Sunlen Miller

User Comments

“President Obama’s budget chief hinted that the president’s signature campaign issue – a middle class tax cut – will not likely survive a budget battle with Democrats on Capitol Hill.”
“Democrats”? Are there some Democrats left on Capitol Hill, along with the “Obama” organization’s corporate shills? Maybe they’ll declare National Health, and move to impeach the ring-master of the bait-and-switch celebrity circus.

Posted by: Pants on Fire | March 25, 2009, 5:06 pm 5:06 pm

The Democratic Congress and Obama has already broken promise to the America people that they support middle class tax cut. They lied during their campaign before they won the election last year. The Democratic will raise taxes. I am not too impress with Obama’s Budget Chief. I don’t know who this guy is. He is the worse “Budget Chief” in this history. The Democratic Congress will lose the election big in 2010 and Mrs. Pelosi will not be the Speaker of the House anymore. She deserve to retire from Congress and go back to San Fran, California to play “Grandma” to her grandkids.

Posted by: anonymous | March 25, 2009, 5:11 pm 5:11 pm

Axing the tax cut will hurt, but removing cap-and-trade may be a real blessing in disguise for the White House.

Posted by: matt | March 25, 2009, 5:15 pm 5:15 pm

They are all taking us to Hell; democrats and republicans. None of them care about *us*, they only care about political power plays. They care when it is time to get re-elected, and then that is it.
I want to tell you how much I appreciate your reporting. THANK YOU for actually being a reporter vs a groupie. The Press was designed to keep tabs on the government, not cheerlead for them. Thank you!

Posted by: 1988 | March 25, 2009, 5:16 pm 5:16 pm

“The Democratic Congress will lose the election big in 2010 and Mrs. Pelosi will not be the Speaker of the House anymore.”
Let’s hope the former Democrats, along with a slew of “Republicans”, lose their seats to Something Completely Different. The “first female” Speaker and the “first black” president are powerful arguments, meanwhile, against bogus “diversity” and identity politics.

Posted by: Pants on Fire | March 25, 2009, 5:16 pm 5:16 pm

What should REALLY make people mad is that if John Kerry hadn’t sabbed Howard Dean, Dean would STILL be president, the wars in Afghanistan and Iraq would be over, the Patriot Act would be decommissioned, and we’d have National Health.
Instead, we’re tripping down the road to fascism with a Jim Jones knock-off.

Posted by: Pants on Fire | March 25, 2009, 5:26 pm 5:26 pm

Those dems currently on the hill can be replaced with other dems who will do what the majority of the voters sent them over there to do.

Posted by: hang | March 25, 2009, 5:29 pm 5:29 pm

anonymous:”I don’t know who this guy is. He is the worse “Budget Chief” in this history. ”
Without googling it, can you even name two past Budget Chiefs? I’m wondering just how wide a field you’re considering before bestowing that worst title.

Posted by: jhw539 | March 25, 2009, 5:32 pm 5:32 pm

some campaign trail promises, like middle class tax cuts, may get left on the cutting room floor.
—————————————
Nobody really believes politician promises anyway.

Posted by: mad | March 25, 2009, 5:32 pm 5:32 pm

“some campaign trail promises … may get left on the cutting room floor.”
Along with the Congress.

Posted by: Pants on Fire | March 25, 2009, 5:35 pm 5:35 pm

Keep the middle class tax cut.

Posted by: MrUniteUs | March 25, 2009, 5:36 pm 5:36 pm

Pants on Fire:”Instead, we’re tripping down the road to fascism with a Jim Jones knock-off.”
What similarities do you see between Jim Jones and Obama? They have radically different speaking styles (Obama is first and foremost a writer and lecturer, not an unscripted preacher), as proven by sporatic resistance from his supporters Obama clearly does not have a cult of personality, and I do not know of a single social issue where they share the same view.
I am curious what similarities you see, as based on the actual historical record you may as well be suggesting Obama is identical to Reagan.

Posted by: jhw539 | March 25, 2009, 5:38 pm 5:38 pm

“Keep the middle class tax cut.”
On the other hand, they could just eliminate everybody who DOESN’T work for the government. In fact, that seems not unlikely, unless the Mexican “gangs” make it up here to inspire the Anglos.

Posted by: Pants on Fire | March 25, 2009, 5:40 pm 5:40 pm

Jake, why not repeatedly ask President Obama whether he would “sign a budget” that didn’t contain several of his key priorities.
Oh, that’s right. Presidents don’t sign budgets into law. Forget it.

Posted by: BrotherGuido | March 25, 2009, 5:41 pm 5:41 pm

blah blah blah Teleprompter blah blah blah Birth Certificate blah blah blah Pelosi blah blah Socialism blah blah …
*YAWN*
… ZZZZZZZZZZZZ …

Posted by: R Mutt | March 25, 2009, 5:42 pm 5:42 pm

“I am curious what similarities you see, as based on the actual historical record you may as well be suggesting Obama is identical to Reagan.”
You’re right: He DOES combine the messianic political flim-flam Jones was so good at with the mocking, long-winded nonsense of The Great Communicator.

Posted by: Pants on Fire | March 25, 2009, 5:43 pm 5:43 pm

“What should REALLY make people mad is that if John Kerry hadn’t sabbed Howard Dean, Dean would STILL be president, the wars in Afghanistan and Iraq would be over, the Patriot Act would be decommissioned, and we’d have National Health.”
If Dean had been lucky enough to overcome the smear machine with the Democratic party in the shape it was in 2004, he still would have been saddled with a GOP Congress only with no Dean as DNC chief rebuilding the party from the ground up for 2006.
He would have been setting veto records vs passing anything he wanted.

Posted by: Ryan C | March 25, 2009, 5:43 pm 5:43 pm

Hmmmmm…… Jake3 what is with this report of yours then?
The Senate will “protect President Obama’s priorities — education, energy, health care, middle class tax relief and cut the deficit in half,” said Senate Majority Leader Harry Reid, D-Nev.

Posted by: Thinking | March 25, 2009, 5:44 pm 5:44 pm

I had always been taught that when you get in a little too deep, debt wise, that you bit the bullet and cut back, paid down the debts and resumed a more careful financial strategy. Perhaps one day I’ll figure out how spending more money than you could ever dream of helps get a person out of debt. In the meantime I along with the rest of you will watch the on going events in DC and remind myself that outside of goat ropings and chicken pluckings, that our Government is pretty darn good entertainment.

Posted by: david | March 25, 2009, 5:46 pm 5:46 pm

If Dean had been elected president, the joy among the people would have been such that great changes actually would have come about.
The mobbed-up “Obama” organization, alas, took nothing from Dean but his flair for online organizing.

Posted by: Pants on Fire | March 25, 2009, 5:49 pm 5:49 pm

Takes two years to figure this out!? I really think we should kick them all out GOP and Dem alike and make them go back and if they deserve to be in office, give us a good reason why.

Posted by: DJ | March 25, 2009, 5:50 pm 5:50 pm

some campaign trail promises, like middle class tax cuts, may get left on the cutting room floor.
—————————————
Nobody really believes politician promises anyway.
Posted by: mad
———————–
How do you know when a politician is lying? their lips are moving.

Posted by: DJ | March 25, 2009, 5:52 pm 5:52 pm

Pants on Fire:”You’re right: He DOES combine the messianic political flim-flam Jones was so good at”
Could you cite actual examples where you see the similarity, or do you just have rhetorical ranting? The only people calling Obama the messiah would be his opponents.

Posted by: jhw539 | March 25, 2009, 5:53 pm 5:53 pm

david:”I had always been taught that when you get in a little too deep, debt wise, that you bit the bullet and cut back, paid down the debts and resumed a more careful financial strategy. ”
I have never heard that taught when dealing with macroeconomics on a nation-state scale. It doesn’t make any sense – the coordinated action made possible by a government structure is most needed when ‘you get in a little too deep’ (war, famine, depression, natural disaster). The current recession is patently not caused by government overspending (note the lack of inflation, despite Greenspan’s and Bernie’s best efforts).

Posted by: jhw539 | March 25, 2009, 5:55 pm 5:55 pm

MrUniteUs: Could you define the “middle class” tax bracket and what level of taxation you would like to see kept? Just curious how expensive your proposal is – what do you suggest to cover it’s cost?

Posted by: jhw539 | March 25, 2009, 5:56 pm 5:56 pm

“our Government is pretty darn good entertainment.”
It’s not such great entertainment for the completely dispossessed, I expect … many of whom will have managed to see the fraud Obama try to minimize yesterday’s “press-conference” question about the homeless with a lot of pointless posturing.

Posted by: Pants on Fire | March 25, 2009, 5:57 pm 5:57 pm

The important point is that Obama KEPT his campaign promise.
He said that people making less than $250,000 would receive a tax cut.
That impacts 95% of the families in the US.
That promise and tax cut is NOW LAW.
And will be so, for at least two (2) years. Any nonsense about him not keeping his promises regarding the “middle-class tax cut” is just not being honest.

Posted by: Tom | March 25, 2009, 5:57 pm 5:57 pm

Congressional Term Limits!!!

Posted by: beeman | March 25, 2009, 5:58 pm 5:58 pm

“If Dean had been elected president, the joy among the people would have been such that great changes actually would have come about.”
I think the presidential demise of Dean demonstrates that Teddy Roosevelt would never be elected today.

Posted by: Skip | March 25, 2009, 5:59 pm 5:59 pm

To Pants On Fire… at least he had the decency to acknowledge that there is homelessness in the US… as well as to point out that a large percentage of homeless people in the US are veterans.
Previous Presidents, and the GOP leaders, have never even had the decency to make those statements in public.
It was always the “see no evil, hear no evil, therefore there is no evil” mantra.
I give Obama tons of credit for his honesty.
Surprising isn’t it, that question was not asked by a mainstream newspaper?
Ebony magazine. Give the reporter credit for raising the topic to national prominence where it belongs.

Posted by: Tom | March 25, 2009, 6:01 pm 6:01 pm

“Could you cite actual examples where you see the similarity [between Jim Jones and Obama]?
1. the primary campaign
2. the General Election campaign
3. the endless rallies since the so-called “election”
4. using “blacks” for political support while surrounding himself with uber-anglos
5. lying about everything, and blaming subordinates and outside “threats” for whatever lying can’t fix
… for starters.

Posted by: Pants on Fire | March 25, 2009, 6:06 pm 6:06 pm

“According to the national Nielsen ratings, Barack Obama’s Tuesday-night press conference lost viewers compared with his two most recent heavily covered evening events.
“The news special drew 40.4 million viewers — down 18% from from his Feb. 9 press conference, and down 23% from his Feb. 24 address to Congress. The numbers are the combined viewership from 11 cable and broadcast networks that carried the event.”

Posted by: Fascist Hyena | March 25, 2009, 6:10 pm 6:10 pm

“He said that people making less than $250,000 would receive a tax cut.
“That impacts 95% of the families in the US.”
That’s false. Roughly 40% of US adults paid no income tax at all in 2007. Giving them a “refundable tax credit” is not a tax cut at all, and it is a lie to say that it is. It’s simply a transfer payment. It would be just as truthful to say that it’s a cut in their liquor bill.

Posted by: Fascist Hyena | March 25, 2009, 6:13 pm 6:13 pm

Fascist Hyena: “”He said that people making less than $250,000 would receive a TAX CUT.”
That’s false. Roughly 40% of US adults paid no income tax at all in 2007″ blah blah blah
He NEVER SAID INCOME TAX CUT. Why do you keep insisting he did? I’m not sure if you’re lying or just incredibly easily swayed by groups lying to you. Social security and medicare are commonly referred to as payroll TAXES. I guess in your reality, they’re not. And sales tax isn’t a real tax either, nor gas tax, nor real estate tax, nor anything else – when you hear ‘taxes’ it MUST mean the national income tax and nothing else, is that Right?

Posted by: jhw539 | March 25, 2009, 6:26 pm 6:26 pm

I will only believe this when I hear it from Obama himself. This is not going to happen, so the Repubs better find something else to criticize him for.
The media noise cannot hide the fact that he has only been the President for 60 days. Get real, its too late to get a conscience for not reigning in Bush for the last 8 years.
Give Obama a break! The numbers are slowly coming around and just like the campaign where he came from 20 points behind, he will succeed again.

Posted by: Donna | March 25, 2009, 6:29 pm 6:29 pm

“If Dean had been elected president, the joy among the people would have been such that great changes actually would have come about.”
Okey dokey.
I like the Doctor a great deal but I recognize the reality of the situation.
Besides, his becoming DNC head instead of the nominee was a blessing in disguise.

Posted by: Ryan C | March 25, 2009, 6:36 pm 6:36 pm

“That’s false. Roughly 40% of US adults paid no income tax at all in 2007.”
Ah yes from the pages of the Heritage Foundation.
Thanks we were out of TP in the office.

Posted by: Ryan C | March 25, 2009, 6:41 pm 6:41 pm

“Besides, [Dr. Dean's] becoming DNC head instead of the nominee was a blessing in disguise.”
A blessing for the “Obama” organization’s corporate mobsters.
If a Republican had tried this crappola, he/she/they’d have been under siege by now.

Posted by: Pants on Fire | March 25, 2009, 6:49 pm 6:49 pm

“That impacts 95% of the families in the US.”
That’s false. Roughly 40% of US adults paid no income tax at all in 2007.
***************************************
Not all families have two wage earners and there is the tax credit. That should about cover it.

Posted by: Thinking | March 25, 2009, 6:53 pm 6:53 pm

“The only people calling Obama the messiah would be his opponents.”
The distinction is that the Obama followers believe he can walk on water and do no wrong. Those calling him a messiah are only reflecting that phenomenon of his followers.
For example, you believe he can walk on water and that he can do no wrong, right? Otherwise you would occasionally offer up some critical thinking about him, no?

Posted by: Sigmond | March 25, 2009, 8:01 pm 8:01 pm

“Social security and medicare are commonly referred to as payroll TAXES. I guess in your reality, they’re not.”
Obama has reduced the amount of withholding from paychecks, which includes income tax, not just payroll taxes. He cannot reduce your social security or medicare contributions. This is not a tax cut, only a way to give employees extra spending money. You will owe the same amount of income tax when you file. The “middle class tax cut” he promised is a scam.

Posted by: Sigmond | March 25, 2009, 8:08 pm 8:08 pm

“It has only been two months in office for Obama” and yet another campaign promise has been broken.
No “middle class tax cut”…..

Posted by: Tina | March 25, 2009, 8:11 pm 8:11 pm

another broken promise by this president.

Posted by: Tom | March 25, 2009, 8:12 pm 8:12 pm

“Otherwise you would occasionally offer up some critical thinking about him, no?”
I think you guys have that more than covered already. We don’t feel any need to pile on any more criticism.

Posted by: Skip | March 25, 2009, 8:15 pm 8:15 pm

“The distinction is that the Obama followers believe he can walk on water and do no wrong. Those calling him a messiah are only reflecting that phenomenon of his followers.
For example, you believe he can walk on water and that he can do no wrong, right? Otherwise you would occasionally offer up some critical thinking about him, no?”
ROFLMAO!
Critical thinking to a right winger is creating a strawman argument, defending the creation of that argument then repeating the argument.

Posted by: Ryan C | March 25, 2009, 8:15 pm 8:15 pm

“Obama has reduced the amount of withholding from paychecks, which includes income tax, not just payroll taxes. He cannot reduce your social security or medicare contributions. This is not a tax cut, only a way to give employees extra spending money. You will owe the same amount of income tax when you file. The “middle class tax cut” he promised is a scam.”
ROFLMAO!
That’s the right wing lie
Now for the truth
For 2009 and 2010, the Making Work Pay provision of the American Recovery and Reinvestment Act will provide a refundable tax credit of up to $400 for working individuals and $800 for married taxpayers filing joint returns.
This tax credit will be calculated at a rate of 6.2 percent of earned income and will phase out for taxpayers with adjusted gross income in excess of $75,000, or $150,000 for married couples filing jointly.
For people who receive a paycheck and are subject to withholding, the credit will typically be handled by their employers through automated withholding changes in early spring. These changes may result in an increase in take-home pay. The amount of the credit must be reported on the employee’s 2009 income tax return filed in 2010. Taxpayers who do not have taxes withheld by an employer during the year can also claim the credit on their 2009 tax return.

Posted by: Ryan C | March 25, 2009, 8:22 pm 8:22 pm

Soooo….how much of that “95%” will that leave?

Posted by: RR GOP | March 25, 2009, 9:27 pm 9:27 pm

President Obama got us this tax cut; it is up to us to yell so we get to keep it.

Posted by: S Velsor IV | March 25, 2009, 11:34 pm 11:34 pm

President Obama should Do Absolutely Nothing Domestically and lets See how long some you Survive as well as your State.
———
He should Starve All You Hate Mongers down to your Knees !!
——
If the Federal Government simply Shuts
“Depend on your own Treasury”..
Governors Depend on Corp. America Or Your State Treasury ..
Obama should say…
“I have Bigger Sharks to Catch”
Go Fend for Yourselves…
“Tell Your State Governor, to use your State’s Treasury or Charge More Taxes if you are Low On State Funds”
“Your State’s Residents can Handle it”
The State’s, Counties and Cities would be Doomed !
Then you’ll have Massive Numbers of Un-Employed, Living off what…
AIR ?
Because the Big Bad Government has Shut the Damn Door and Cut Your State’s Money Supply Off !!
Some of You can’t stand the fact, that a Man Of Color is Your President..Period
Well, Complain all of 4 -8 years and if you are thinking Jindal or Palin as your Choice…
Look for another 4 years of Pres. Obama and keep Complaining and Hating…
He’s still Your President
Note: Either Obama does Nothing and Watch Chaos or He tries to Help..
President Obama…
Let them Starve and tell them to take it up with their Governor, He or She wants to reject 5-15% of the Millions or Billions given to your State…
Tell your Governor to Return all the MONEY..
I’m Done

Posted by: O. | March 26, 2009, 12:46 am 12:46 am

Poor people and rich people now have new common ground – we’re tired of hearing about this wonderful middle class and how important they are. Are poor people not an issue – as poverty reigns in the U.S.’s ghetto? Do rich people (however we define them today) not have an important role to play in this recovery?
Who is this middle class anyway — I think it’s just a word that gets in the way of fairness to ALL Americans.

Posted by: DontGet818OnMeNow | March 26, 2009, 9:09 am 9:09 am

O…Decaf

Posted by: Parallax View | March 26, 2009, 1:47 pm 1:47 pm

So is the $400 for working individuals and $800 for married taxpayers filing joint returns it?
I am self employed, gross $78,000 a year and PAY TAXES. 15% Fed, 11% State and 15% full FICA. My wife works part time for for LESS than minumum wage because she gets tips. That brings another $1000 a month. With three kids, two cars and one mortgaged house I guess that makes us middle class, although I have never worked so hard to feel so poor.
So is a credit $800 for 2009 all I can count on?

Posted by: MiddleClass | April 15, 2009, 6:12 am 6:12 am

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