(CNN) - Former White House Budget Director Peter Orszag is breaking with President Obama on the controversial election-year issue of whether the Bush tax cuts for the wealthy should be scrapped, declaring in a New York Times op-ed that failing to extend the tax cuts for the rich would "make an already stagnating jobs market worse over the next year or two."
To be sure, the crux of Orszag's argument is not complete music to the ears of Republicans because he's proposing a compromise by which all of the Bush tax cuts are extended for two years but then will be ended altogether, something the GOP does not want to endorse.
CNNMoney.com: Orszag: Extend Bush tax cuts for 2 years
But the more sensational part of Orszag's first column for the New York Times is that he is urging the president he worked for just a month ago to sign on to allow the tax cuts for the wealthy to continue in the short-term, borrowing a line of reasoning Republicans are using on the campaign trail.
"Higher taxes now would crimp consumer spending, further depressing the already inadequate demand for what firms are capable of producing at full tilt," Orszag writes in the new occasional column he will write for the New York Times. "And since financial markets don't seem at the moment to view the budget deficit as a problem - take a look at the remarkably low 10-year Treasury bond yield - there is little reason not to extend the tax cuts temporarily."
White House aides were quick to make clear that Orzsag's advice will not change the president's view that the tax cuts for the rich need to expire at the end of the year in the name of fiscal discipline.
"The president has been clear about his support for extending tax cuts for the middle class and about ending the tax cuts for the wealthiest 2 percent of Americans, which would cost $700 billion over ten years to extend at a time when we are dealing with a fiscal crisis and the independent (Congressional Budget Office) has listed as the least effective form of growing the economy," White House spokeswoman Amy Brundage told CNN.
From CNN Politics
© 2011 Cable News Network. Turner Broadcasting System, Inc. All Rights Reserved.
| Advertising practices | Advertise with us | About us | Contact us | Work for us | Help
Yes! extend the tax cuts 2 more years...we earned the money, we should be allowed to keep it.
This is genius in action. First, the Bush tax cuts created no jobs to begin with so to continue them is meaningless. Secondly, the government needs the money. This country is in debt. If only Obama hadn't squandered the fantastic economic situation Bush left him. If tax cuts create jobs, let's do away with all taxes and there would be full employment!!!!
What do you expect, Peter took a huge Wall Street pay cut to pad his resume' by working in the White House and he is about to go back to being among the over paid cooperate exc, he is just revealing his true colors.
A lot of talk about the Bush tax cut and the extension of the Bush tax cuts. No one has said how many American got the tax cut. If you didn't make $250,000 you didn't get tha Bush tax cut .Now President Obama, in keeping with a campaign pledge, wants to raise taxes on families making more than $250,000 but keep them where they are for everyone else. Have anyone asked how much money or taxes the government lost because of the Bush tax cut on the top 3-5 % of american or who ever got the tax cut.
This is an issue that is a joke!
Show me one issue where cutting a wealthy persons taxes has helped the economy. I know several people with money- not one has done anything different during the past 10 years when it came to spending . they take the extra money and put it in the stock pile.
They don't open businesses, they don't travel more- they just live their lives the same with more money.
I'm waiitng... Show me the spending
And why is he the Former White House Budget Director?
I almost don't care anymore. Give em their tax cuts..why not just give them the keys to the country and be done with it. They are the entitled, not the poor slobs who lost their jobs and now have to deal with trying to find a job that will pay more than unemployment, but not enough to pay for the roof over their head, their children's college, putting food on the table. They are the entitled, who's children won't have to go fight in their 2 wars. They don't need to pay for 2 wars that they supported. Who cares. Let's cut all entitlement spending to the bone, and that includes Medicare and SS. Lord knows I could use that money they take out of my check every payday to invest in the stock market or help pay for my childs education. I'm tired of working my self to death so that these senior citizens getting free bus rides to DC (while enjoying their medicare and SS) to protest against this sitting President and congress's deficit spending ( entitlement spending ) while I'm one of the working slobs helping them do this...So cut it all.
I guarantee you that no rich person has EVER said, "Oh, wow, an extra $4 million. Man, I should go out and hire some people now." Why? Because personal wealth does not ensure jobs, nor does corporate wealth, as corporate wealth now days only means the CEO - a rich person - will get more personal wealth.
i knew i didn;t like ( or trust ) this guy for some reason..Looks like he may have been a closet GOP'er !!!!!
Since the bush tax cuts were never paid for, we are stealing from our children to give money to the very wealthy. According to the CBO, this has the least stimulative effect on the economy of all the proposed fixes. These tax cuts need to end.
If we are to steal from our children to fix our economy now, lets at least leave them something to show for it, as FDR did in the '30s, like the Hoover dam, Red Rocks amphitheatre, the TVA, and any of numerous projects we still enjoy to this day.
Let's either suck it up and end the deficit based transfer of wealth to the top 2%, or spend this money we don't have on effective stimulus programs.
Twice we have tried "trickle down." Funny how, under Reagan's trickle down (or urinate down), unemployment was at 10% in the mid 80s, and under bush's urinate down, unemployment reached 10% in 2009. Get it? Urinate down is nothing more than peeing on the middle and lower income earners.
Wow, this guy will get skewered by the liberals on this site. Can't wait for those heads to explode again.
This guy is real intelligent, but the tax subsidies for the very wealthy 2% of Americans (from 39% to 35%) should end.
The people who make (declare to IRS) over $250K are celebrities and CEOs, not small business people as the Repubs want you to think.
The small business people I know are smart enough to declare much less than $250K.
It's just another Repub scam to help out their corporate sponsors and fellow lobyists.
Ask yourself – when the Repubs were in power for so long in every branch of government why didn't they make these tax subsidies permanent?
You won't find the answer watching Foxed up TV.
Did the authors of this even read his op-ed this morning? It says "Ideally only the middle-class tax cuts would be continued for now. Getting a deal in Congress, though, may require keeping the high-income tax cuts, too."
Seriously – this is unacceptable reporting.
You are kidding. With Corporations taking huge profits rather than re-investing in either workers, improvements or R & D while shareholders and CEOs are raking in the bucks ... you have got to be kidding. The ultra-rich have shown for 40 years that they do not 'grow' the economy! They abuse it! The Market should not Rule. The Market should Serve. Around the world with this type of Free Market, we have created another aristocracy with everyone else serving them. Shame on the Conservatives and Republicans and any economist who believes the aggregation of wealth is good for an economy.
Sorry, Pete. No matter how you try to spin it, extending the tax cuts for the richest 2% of America is just another nail in the coffin of the middle class.
Orzsag's argument missed the crux of the matter in that the wealthy do not account for the consumer spending that creates the demand needed to re-energize business. The other issue is that businesses are currently hoarding cash. They the most cash heavy they have been in years. The argument that they need this tax cut to hire employees is bunk. They have the cash to do it now if they wanted. The problem is demand. No business is going to create inventory that they have no orders for. Joe and Jane main street are unloading debt and are not inclined to engage in heavy consumer spending right now. Until they have de-leveraged more don't expect consumer spending to recover. Better to expire the tax cuts and deal with some of the government debt.
If he was still working for obama he would state the party line that the tax cuts did not and would not work. I guess he got tired of toting the water for this clueless occupant of the Oval Office.
Who cares what Orszag thinks? He's a Wall Street hack!
More tax cuts with borrowed money.
if we are going to keep adding to the amount of money we borrow, lets use it to rebuild America's infrastructure rather than giving it to the rich to squander.
And the Bush Tax cuts, FYI: THEY ARE HISTORY. Bush and his cohorts wrote them to expire, they will expire. If the current Congress and President put in tax cuts, they are not the Bush tax cuts, they are the Obama tax cuts (which we can't afford!).
Bush and his cohorts could have written the tax cuts to be permanent, if they thought they could have passed such a bill, but THEY DIDN'T. There were a few reasons; one was that such a bill would have added enormously to the projected debt. That is still a good reason why we should go back to reasonable tax rates, such as those in place during the growth years of Bill Clinton (growth AND budget surpluses, whatta genius!). And loose some of those giveaways that keep half of the country from paying ANY taxes.
It is time for Orszag to find another job!
We all better hope this tax cut is extended and maybe another tax cut for the rich or they may ship all our jobs to communist china.
More proof that obama is a Total Failure and Geitner doesn't know
a twit about the economy!
yep, the rich need more tax cuts!
hey, THAT"S ME.....
Do you ever wonder if the more fortunate of us can put a little back on the table... i'm fine with doing my part....as long as you can figure out ways to spend it wisely....i.e NOT on wars!
Do not extend the Bush tax cuts because greed does not produce jobs.
People do not understand........ the Bush Tax Cuts.
Bush Tax Cuts are FOR the wealthiest........ 1%.......... people who earn OVER........... $250,000 a year. IT IS FACT, that these folks DO NOT SPENND their extra money.
IF the Bush Tax Cuts had ......worked......... would we be in this mess?
Remember, America, the financial meltdown of 2008? The 8% UNemployment in ......2008? Trickle down economics ........never worked!
Of course he will say something like that. He works for that secret organization; where they make foreign policy for the united states (created by bankers of course). How about this. We will the bush tax expire and we will see what happens. If the people on the left are wrong then you can tell us "i told you so"
I must have missed the news the day W came down the mountain the THE TAX RATES carved in stone. Most repugs, and a lot of other pols, act like that is how it happened. They act like there was something special about Bush Tax Cuts, when they obviously underfunded the country.
We all want a great country; good schools, awesome (SUPER AWESOME) military, modern, efficient airports and highways, nanny gov to protect us when it rains or the wind blows; we want it all. But we want someone else to pay for it.
Seems like one needs to not be in this administration to start seeing things for what they are and not understand them just with heavy ideological bias. Welcome to real life Mr. Orszag!
It would seem that Orszag's grasp of reality puts him at odds with the Administration. Interesting...
He's clearly getting paid by those that will be most affected by the cuts expiring. Taxes will go up an entire 3.6%. Are you telling me that wealthy people are so strapped for money right now that they cannot afford an increase that small? A report came out recently that said the yacht and jewelry businesses catering to the wealthy are making record profits. That said, they CAN afford this small tax increase. In fact, it's not even an increase. It was Bush and the Republicans that set the tax cuts to expire this year so if anyone is to blame it's them.
CNN, who cares what Orszag has to say??
Stop your constantly reporting negativity, pushing your bias for the right, trying to become another Fox and start doing what you are supposed to do. You, like your beloved republicans have thrown all integrity, honor and responsibility to the wind.
You are a disgrace.
The White House hires Orzzag as heir budget "expert" and touts him as the guru on all things budget-economy related, but when his advice is contrary to election year politics, the Obama White House aides were quick to make clear that Orzsag's advice will not change the president's view . Translation: Obama still does not get it, and has no clue how to fix it. And it also underscores Obama's willingness to do things harmful to the country so long as they help him and Democrats stay in office.
Where are all the jobs these tax cuts to the rich have created? This hasn't worked yet, what makes the Republicans think that extending this will work now? The Republicans talk out of both sides of their mouth, one side says we must reduce the deficit, the other says extend the tax cuts to the wealthy, which will add to the deficit. I am sick to death of the Republicans. Their only aim is to get reelected so they can continue to kiss the behinds of the CEOs, oil companies, and any other rich entity that will contribute to their campaigns.
Wow, Orzsag actually starting to make sense. Better check the temperature in Hades.
Why do you think he left the adm. He knows that extending the cuts is the right thing to do.
I have never worked for a poor man or someone on welfare. For the most part these custs are for the business owners that generate wealth and jobs. These are the folks that are CONTRIBUTING to the economy. Something that Obama in no way can relate to!
Obama demonizes the rich (even though he is a 'fat cat' himself).
Look, earn your own money and stop worrying what others do with their own money. I don't sit at home wondering what Obama, Kerry, Edwards, Boxer, Pelosi, Biden and Reid are doing with their millions–but I do care how they spend my tax dollars.
Peter Orszag needs to SHUT UP about these tax cuts and let them expire. So does anyone who's not a part of the middle class or working class in the United States at this point.
During the past 10 years the wealthiest 2% did nothing to help the economy of the country. Instead they watched Corp. giants ship middle income jobs off shore. They watched while regulatory oversight erroded to notthing. All the time getting richer and richer.
Unfortunately, the top 2 or 3% in this country CAN NOT get or keep our economy going. Average incomes are needed for the US to survive and thrive. When you take away 10% of the incomes of 98% of the people in country, what do you expect will happen? THIS CRAP RIGHT HERE...
So let the tax cuts expire. They only helped a select few anyway and the fact is, THEY WILL NEVER HELP THE MAJORITY...
Wonderful. Orszag is a little to the right of most Obamanistas. So what. Now that he is gone from the administration it just tilts further to the left.
Obama is at a dead end. Anything he could do to stimulate the economy (e.g. extend Bush tax cuts, etc.) would be seen as a sellout by his base, thus dampening his appeal to his base. Anything he could do to stimulate the economy would further imperil the democrats election prospects.
Obama is cornered... expect him to lash out in anger. He is a petulant child. His arrogant condescension just alienates him further from the mainstream. He now only appeals to the angry left. Obama is one and done.
And to further make America great, we have to make better use of our tax dollars. Along with a return to SUSTAINABLE TAX RATES, let's have an across-the-board cut in all government salaries, starting with Congress
Outlaw automatic pay raises, also.
No pensions for government workers
Government workers should be compensated 10% less than private sector; that 10% is made up for in job security and patriotism. If you believe in Capitalism, you pay what it takes to fill a job, nothing more.
I just love the whole "tax cuts for the rich" mantra. These people aren't an aristocracy of wealth built on the backs of slaves or indentured servants. They are those among us with the creativity to find a place to thrive and the cojones to risk all they have on order to succeed. They are the ones Who Create Jobs!!!! Why do the Dems want to continue a class warfare??
This is the most slanted piece of tripe I've ever witnessed on CNN. Orszag did nothing of the sort as this article states. The only reason he states that tax cuts should be extended for the higher brackets is because he knows that Obama can't get what he wants with just extending the cuts for the middle and lower brackets. Accepting that you need to extend them all to get enough votes does not mean you are promoting tax cut extensions for the weathly. It just means that all are better than none. CNN, please stop trying to stir up controversy when it's not there.
There is no way many of us who are professionals in this field will suppot Mr. Orszag's idea. That he was a former aid does not make his argument sound and economically logical. He is not the expert in this field. Giving tax cut to the middle class who will actually spend the money will not only go a long way to stimulate the economy but will also put money on the rich and the government pulse through demand for goods and tax collected by government. You do not stimulate weak economy by giving the rich a tax break. They will not spend it and such approach does not stimulate the demand side. There is no magic wand to address the present economic predicament rather, this present administration is in the right track. What we only need is patience for the pieces to come together.
C
Why, the rich never spend their own money anyway.
Orszag's proposal is politically unrealistic, for if Obama is not reelected the GOP will keep the rich filthy indefinitely. We need a tax system that is progressive with respect to discretionary income and that returns the top tax bracket closer to what it was during our time of prosperity (the 1940s to 1960s).
The solution to jobs, does not lie with market expansion, but with bringing manufacturing back to America.
That is the only way, the jobs problem, can possibly be solved.
End the Bush Tax cuts now and forever... (PERIOD!)
I do sympathize with those who make $251,000 in a coastal area, because I know that's not really "worry-free" rich. However, I don't buy for a second that mega-millionaires will suddenly stop spending just because their taxes go up 10%. We need to add tax strata for the mega-rich. There's no reason why a person who makes $38,000 pays less than someone who makes $380,000, and yet the latter pays the same as someone who makes $3.8 million.
The rich are doing just fine – they are still rich, aren't they?
Where do these people get off demanding CONTINUED tax breaks for the wealthy in the middle of such hard times for the rest of us? They already had TEN YEARS of tax breaks. It is finally time for them to pull their weight and stop whining about how hard it is being richer than everybody else.
Over 7 million jobs were lost during the Bush tax cuts, I would like to know who did they help.
This is an insane idea. These tax cuts are one prime reason there is not money for government programs! And we need those programs and more the get people back to work. The trickle up affect does NOT work! It's been proven over and over when the ultra rich have too much of the country's money we have a an economic crisis. Enough is enough!
As the economy slowly sinks, more rats will be jumping ship on the Obama Cruise Lines!
Peter,
I understand that you still want to stay somewhat relevant. Or, at least be relevant, which it appears you were not in the Obama White House. You're a little nerd kid, stuck in some wonderland of theories of socio-cultural economic world that has really never existed.
Why should _anyone_ expect that the rich would return any monies to the workaday world? Look at what the banks and other lending institutions, and corporations for that matter, are doing with their growing treasure chests-they are hoarding the money. They are _not_ lending it out, not starting new ventures, not hiring, period. Clearly, they want theirs while they can get it, and to heck with the rest of this great nation.
Good riddance.
Wow, the semi-intelligent ones have lept from the sinking ship Obama, leaving the stupid ones whose only tools are those that have clearly and miserably failed while they keep hoping that a miracle will happen.
"White House aides were quick to make clear that Orzsag's advice will not change the president's view that the tax cuts for the rich need to expire at the end of the year in the name of fiscal discipline."
When referring to the Obama administration, aren't "President's view" and "fiscal discipline" mutually exclusive terms?
Peter Orszag is a stupid dirt bag. The tax cuts for the rich are what got us in trouble in the first place. Let's take a look at his tax return. I'd bet my house, if I still had one, that he's a rich dude that has been benefiting greatly by the tax cuts or that he's a lobbyist for the rich. Either way, he's getting more money in his pocket.
Too funny. This is a body blow to Barack Inane Obama's economic plan – whatever that is. hahahahahahahaha.
By the way – in reference to Inane's bellyaching about being talked about like a dog...to paraphrase the highly esteemed dumbocrat Harry S. Truman...if you can't stand the heat (you know the rest).
Obama is a big baby. A thin skinned, spoiled brat, big-mouthed baby. With all the insults GWB took from the arses on the left, he never cried about. Bush has infinitly more class and grace that the boob Obama.
This CNN article seems to argue that Orszag favors extending the tax cuts for the rich, yet in the second paragraph of Orszag's editorial, he states:
"In the face of the dueling deficits, the best approach is a compromise: extend the tax cuts for two years and then end them altogether. Ideally only the middle-class tax cuts would be continued for now. Getting a deal in Congress, though, may require keeping the high-income tax cuts, too. And that would still be worth it."
Seems that Orszag's favored position is that we should only extend the middle class tax cuts, and he only agrees to extending the tax cuts for the rich in order to get a couple of Republicans on board.
The GOP screams about the deficit but does not want to pay a fair share to pay for the cost of running a country. Trickle down… we had that for all too long. It seems the rich are really determined to make “The President fail”.
Funny, they did not seem to care about spending of the books to destroy a country (and the lives of thousands of people) but now have a big problem to spend some to rebuild the USA after decades of neglect. Most incredible that too many people fall for their one liners and consider voting against their own interests.
Mr obama i would take a good look at your staff and fire who is for gop ideas good god get rid of gates he is a gop lover
If course the Republicans do not want to eliminate them, even though they have failed to deliver on their much touted benefit. Increase JOBS!!! After the BUSH tax-cuts, how many jobs were created? NONE!!! How much jobs were LOST? 8,000,0000!!!!!! Really tax cuts for the rich creates job????? Go on believing that LIE middle class america. What really was created? Billionaires out of millionares. HUGE BONUSES for corporate executives who contribute to politicans to keep them in power, so the middle class can bail them out so they can keep their HUGE BONUSES, so they can contribute to policitians. See the circle here folks. Follow the money trail. I am sure it does not end them all the hard working American people. And people the REPUBLICAN PARTY is NOT working for you. BELIEVE IT.
No tax cuts for the Rich, Big Oil, Big Business or Wall Street! I voted for Obama to stop the abuses of the republicans and the Bush administration for 8 years. Now this guy wants to go back to the rich getting richer and we having homeless now in our little town thanks to the mess that bush and the republicans put us in economically!
I've read .1% of the population receive over 50% of the Bush tax cuts. That's "point" one percent – not one percent! This level of disparity in distribution of wealth is out of control. Republicans clearly pander to the economic elite in continuing to promote trickle-down economics – a plan that never actually works. In no way would the top .1% suffer or sacrifice anything if forced to pay a fairer share toward a country that has treated them so well.
Poor guy... he's giving an honest appraisal of the situation and the left is going to rip him a new one because he dares to disagree with the annointed one. No wonder he left his position.
Extend the Bush tax cuts for those who have done the hardest work: the wealthy, a.k.a. "the workers."
Stop giving money to those who have never worked but are expected to vote for President Obama out of gratitude for their and their babies' checks.
The rich have not created any new jobs since they were given the windfall tax break. Why should we continue giving the rich this windfall? Hoping they will hire new workers after all these years of enjoying there big gift from the previous administration while shipping our jobs overseas and to Mexico?
They want to keep the big tax break?,......show me the jobs!!!!!
Since the Bush tax cuts have put us in a precarious position already, the two year extension proposed by Orszag should finally cripple us. The doctrine of Republicans is the continued destruction and enslavement of the working classes. Obama picked a bunch of Republicans for his cabinent and their policies have led him into a position he will not be able to escape: a failed presidency.
Let the tax cuts sunset as the legis. Was written,keep the under 250 in place. It is not a tax increase for the wealthy,just a return to what they paid 10 years ago.Don't forget the bill was a temporary measure.
Sounds like more conservative propaganda: Tax Cuts for the Wealthy, Reduce the size of Government, Don't raise taxes, blah, blah, blah!
I'm getting sick of hearing the same old retoric! Where's the champion for the Middle Class?!?
He also said: In the face of the dueling deficits, the best approach is a compromise: extend the tax cuts for two years and then end them altogether. Ideally only the middle-class tax cuts would be continued for now. Getting a deal in Congress, though, may require keeping the high-income tax cuts, too. And that would still be worth it.
Clearly, he agrees with the Admin.,
This is nothing new. We all know how the leftists in this country feel. the problem is they are to stupid to understand economics. Sure go ahead and take as much money from ent rich you want. In return you will get job stagnation and no recovery. Most liberals that I know are just jealous because they DON'T have money. I guarentee you if the shoe was on the other foot no way would a liberal or anyone else for that matter, want to part with their money. I sure don't see all the rich liberal politicians offering to give money back. And even if Obozo does manage to get the tax cut for the rich axed, I bet you my paycheck he'll figure out a way to make sure it doesn't affect rich politicains.
Watch out folks, the koolade is wearing off fast.
he makes a good point that debt is cheap right now. but consumer demand large enough to jump start the economy isn't going to come from the top 2%. its just kicking the deficit can down the road.
As much as the Democrats love to condemn the wealthy 2 %, they are still the people that provide many of the jobs that employ the unemployed. They are still the people that dump tons of cash into the system that employs the unemployed. It only stands to reason that we need to incentivive them into spending the cash and creating jobs.
Extend the Bush Tax Cuts for 4 more years or make them permanent. Cut spending to what the Treasury takes in minus 1 percent to pay down the Debt. Then employment will come back slowly. Anything else is just Whistling in the wind.
Wow, did one of Odumwa's trusted consorts finnaly see the light at the end of the hole that Odumwa and the Dummycrats have put the USA in?
Here is the difference between giving tax cuts to the rich and tax cuts to the middle class.
The rich will spend their tax cuts on diamonds, yatchs and cars.
The middle class will spend their tax cuts on feeding their children, fixing their cars and buying a new pair of shoes.
Sorry, but the rich get enough tax cuts, they make a lot of money off the American people, and contrary to popular myth, they have yet to use their tax cuts to hire more people.
So, give ME and the MAJORITY of Americans tax cuts... but really that top 2%... sorry to sound heartless, but who cares!
The President has a difficult job in trying to rein in his own party. Democrats are their own worst enemy. If Mr. Orzag disagreed with his policy, why didn't he have the courtesy of advising the President. Doesn't he know that such actions will only serve to undermine Obama's stance. Why is this person part of the team? I get the feeling that the President is a pawn in the maschinations of those who control finance, media and govt. contracts. They play on both sides of the isle to maintain control, and will hamstring anyone who becomes an obstacle in their quest to maintain control.