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House Speaker Nancy Pelosi says a war surtax does not have 'a good prospect.'

Washington (CNN) - Speaker Nancy Pelosi Tuesday poured cold water on a proposal by several top House Democrats to impose a new surtax to pay for the war in Afghanistan.

Pelosi told CNN, "I think the war has to be paid for. That may be one option, but I don't think that has a good prospect."

The surtax proposal–a graduated tax on most taxpayers–was put forth recently by a number of senior Democrats and close allies of Pelosi, including: House Appropriations Chairman David Obey, D-Wisconsin; Defense Appropriations Subcommittee Chairman John Murtha, D-Pennsylvania; Ways and Means Committee Chairman Charlie Rangel, D-New York; and House Democratic Caucus Chairman John Larson, D-Connecticut.

Pelosi, who has expressed concerns about increasing the U.S. military presence in Afghanistan, is scheduled to meet with President Obama Tuesday afternoon to hear details on his new war strategy. She declined to comment on the President's decision to send another 30,000 troops.

"What I've said to the members is: Listen to what the President has to say. Give him room to give his justifications. We will all have something to say about it then."

Before health care can be cleared off the plate, Obama will have to answer some key tax questions.

NEW YORK (CNNMoney.com) - President Obama's fall agenda has grown largeras some of the biggest decisions - and fights - over health care reform have been punted to September ... at the earliest.

But health reform is not the only major initiative he wants to get done. Far from it. There's climate change. There's reforming Wall Street. And, of course, there's passing a budget for 2010 at a time of huge deficits. Running in the background to all of this will be one of the biggest
issues the Obama administration must address: taxes.

"As soon as they can clear health care off the plate, it will be taxes, taxes, taxes," said Anne Mathias, director of research at Concept Capital's
Washington Research Group.

Health reform taxes: Before health care can be cleared off the plate, Obama will have to answer some key tax questions.

For starters, he will need to be more explicit about what he will accept in terms of increasing taxes to pay for health reform and indicate exactly which of the revenue raisers on the table in Congress he considers deal-breakers.

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President Obama has said he will not raise taxes on those making $250,000 or less.

WASHINGTON (CNN) - "Read my lips: No new taxes."

That famous phrase from George H.W. Bush came as he accepted his party's presidential nomination at the Republican National Committee convention in 1988.

At the time, it was exactly the red meat Republicans were looking for. But campaigning and governing are two very different things.

Bush was elected as the nation was slipping into a recession. When confronted with a growing national deficit, he had to find a source of revenue.

That revenue came in the way of raising taxes, a move that especially rankled members of the GOP and became an issue for Democrats to run on in 1992. Democrat Bill Clinton was swept into the White House.

Pushing forward to 2009, another president may have trekked onto the same territory.

On Monday, the White House sought to shoot down concerns that middle-class families may face a tax increase in order to combat rising deficits and a struggling economy after its two top money men floated the idea that tax increases to fund the nation's economic recovery could extend beyond the wealthiest Americans.

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WASHINGTON (CNN) – The White House shot down concerns Monday that middle-class families may face a tax increase in order to combat rising deficits and a struggling economy.

"The president was clear during the campaign about his commitment on not raising taxes on middle-class families," White House press secretary Robert Gibbs said Monday afternoon. "I don't think any economist would believe that, in the environment that we're in, that raising taxes on middle-class families would make any sense."

The concern came after the Obama administration's two top money men floated the idea that tax increases to fund the nation's economic recovery could extend beyond the wealthiest Americans.

Treasury Secretary Timothy Geithner and Larry Summers, director of the National Economic Council, said Sunday they could no longer guarantee the middle class will be spared a tax increase.

"We have to do what's necessary," Geithner said on ABC's "This Week." "The critical thing is people understand that when we have recovery established - led by the private sector - and we have to bring these deficits down very dramatically ... we have to bring them down to a level where the amount we're borrowing from the world is stable and at a reasonable level."

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CNN's John King says Republicans think they'll gain more ground on pocketbook issues than on Sonia Sotomayor.

WASHINGTON (CNN) - What the country could easily see this week was a major success story for the Obama White House: A confirmation drama featuring Judge Sonia Sotomayor that left even Republican critics predicting an easy path to confirmation.

But just as Sotomayor was making major advances, a bigger initiative from President Obama, health care reform, was dealt a bruising body blow.

Douglas Elmendorf, chief of the Congressional Budget Office, said this of the leading Democratic health care proposals in the House and Senate: "In the legislation that has been reported, we do not see the sort of fundamental changes that would be necessary to reduce the trajectory of federal health spending by a significant amount and, on the contrary, the legislation significantly expands the federal responsibility for health care costs."

Translation: The bills, as they stand, do not meet the president's promise to reduce the long-term drain of health care spending on the federal budget.

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states are poised to pass as much as $24 billion in tax and fee hikes in coming weeks.

NEW YORK (CNNMoney.com) – States are poised to pass as much as $24 billion in tax and fee hikes in coming weeks, as they struggle to balance their budgets amid the worst economic downturn since the Great Depression, a report released Thursday found.

The spike blows away the $726 million in recommended increases for fiscal 2009.

At the same time, state budgets are set to shrink for a record second year in a row. The recession has caused tax collections to plummetandthe need for social services to soar. State officials are scrambling to close last-minute budget gaps that opened after April tax revenues came in below already-lowered estimates. States may be forced to tap rainy day funds or impose even more stringent spending cuts to balance their budgets before their fiscal years end on June 30.

Governors' proposed budgets for fiscal year 2010 show a 2.5% decrease in general fund spending, which comes after an estimated 2.2% decline in the current fiscal year,

This is the largest pullback in the survey's 30-year history and the first time state spending would decline for two years in a row, according to
the National Governors Association and the National Association of State Budget Officers. General fund spending, which is not earmarked for specific uses, covers mainly education, Medicaid, corrections, public assistance and transportation.

Some 29 states are recommending tax and fee increases for the coming fiscal year.

California, which is struggling to close a $21.3 billion budget gap, accounts for $11.3 billion of the hike. Illinois makes up another $4.4 billion, while New York is proposing $4 billion in additional levies.
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Rep. Gresham Barret, R-South Carolina, recently faced a not-so-friendly crowd at a Tea Party protest.

(CNN) – Several Republican members of Congress spoke at Tea Party protests around the country this week. Some were applauded. Others heckled. But only one, it appears, was booed relentlessly for the entire duration of his speech: Rep. Gresham Barrett of South Carolina.

Barrett, who voted in favor of the $700 billion bailout to stabilize the financial sector, despised by many of the demonstrators, knew what he was getting into. South Carolina grassroots conservatives have been blasting the congressman for months because of his vote on the Bush administration's bill last October. Previewing his Tea Party speech earlier this week, The Greenville News wrote that Barrett was headed “into the Lion’s Den.”

But that may have been an understatement, according to video of his remarks captured on Friday by the South Carolina political Web site “The Palmetto Scoop.” From the moment he was introduced to the Greenville crowd, his speech was drowned out by boos, turned backs and angry shouts “Go Home!”

“I know you’re mad,” Barrett said, prepared for the chilly reception. “I know you're frustrated, and I hear you, and the American people hear you, and that’s what this thing is about, it’s about people being heard.”

Barrett got one of the loudest jeers of the speech when he told the crowd: “You may boo, you may turn your back, but I have devoted my life to the conservative cause.”

The booing and shouting continued for the entire five minutes Barrett was on stage. When he pointed out that he recently introduced a bill called the TEA Act to stop wasteful government spending, one protested yelled repeatedly: “Too late!”

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President Obama continued to make the case for sweeping economic reforms this week.

NEW YORK (CNNMoney.com) - President Obama continued to make the case for sweeping economic reforms this week as he approaches the symbolically important 100-day mark in his presidency.

In a major speech on Tuesday, Obama sought to explain his administration's efforts to simultaneously fight the financial crisis and build a foundation for future prosperity.
He also responded to criticism that he is attempting to do too much and defended his plans to make big investments in education, health care and energy.

Echoing comments made last week, Obama said he sees "glimmers of hope" in the economy. But he tempered that by saying "we're not out of the woods just yet."

"There is no doubt that times are still tough," Obama told students and faculty at Georgetown University. "But from where we stand, for the very first time, we're beginning to see glimmers of hope."

At the same time, Obama sought to frame the debate over how to right the nation's economy as lawmakers return to Capitol Hill next week after a two-week recess.

CNN Radio: How's the president handling the economy? CNN's senior White House correspondent answers your questions on '44 with Ed Henry'

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WASHINGTON (CNN) – It's tax deadline day, and activists are holding events nationwide protesting their federal tax burden and the government's spending policy. But are most Americans angry about the taxes they pay?

A national Gallup poll conducted last week finds that 48 percent of Americans say the amount of federal income taxes they pay is about right. That's two points higher than the forty-six percent of those questioned who felt that the taxes they pay were too high. It's also the most positive assessment on taxes that Gallup's measured in six years.

"Most of the movement in the Gallup poll came among people who make less than $75,000 a year," says CNN Polling Director Keating Holland. "A majority of people in that category say their taxes are not too high, and they are the ones that the Obama administration has been targeting with their tax policy and their message on taxes. Maybe that message is being heard."

Conservative protesters gathering at more than 300 organized "tea party" demonstrations across the country say they are steamed at President Obama and the massive government spending that has occurred since he took over at the White House, and that Washington takes too much from their pocketbooks and wallets.

Meanwhile, Obama Wednesday touted his tax cut for 95 percent of working class Americans, courtesy of his stimulus package that Congress passed and the President signed into law. Obama also said at a White House event that he's working toward "a simpler tax code that rewards work and the pursuit of the American dream."

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WASHINGTON (CNN) - Hedge fund managers stand to pay much higher taxes on their earnings under proposals in President Barack Obama's first budget, which was unveiled Thursday.

The administration proposes reclassifying managers' partnership income as ordinary income, rather than capital gains - effectively more than doubling the rate of tax on the money from 15 percent to 35 percent, or even more.

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(CNN) - Early exit polling shows voters expect a post-election tax increase. Forty-nine percent think their taxes will go up no matter who is elected president. Twenty two percent say taxes will go up only if Obama wins. Twelve percent say taxes will go up only if McCain wins. Only 15 percent say their taxes will stay the same or go down.

Gov. Palin campaigned in Florida Saturday as the state's governor, Charlie Crist, looked on.

NEW PORT RICHEY, Florida (CNN) - With a smiling Gov. Charlie Crist at her side, Republican vice presidential candidate Sarah Palin kicked off a three-city bus tour of central Florida on Saturday by focusing on the financial concerns of the nearly three million Floridians over the age of 65.

Palin promised that she and John McCain will “keep our defining commitments to our senior citizens.” But she wasted little time on the Republican agenda and turned her sights, as usual, on Barack Obama, who has accused McCain of wanting to cut Medicare funding and place Social Security benefits in the stock market.

“Barack Obama goes around promising a new kind of politics,” she said, “but then he comes here to Florida and he tries to exploit the fears and the worries about Social Security and Medicare to our retirees and that is the oldest and cheapest kind of politics there is. And enough is enough of that.”

Palin added that Obama favors a government takeover of health care, an accusation that drew boos from the audience.

Referencing New Mexico Gov. Bill Richardson, who said this week that Obama’s tax cuts would only go to those making under $120,000, Palin called the Democratic tax plan “so phony” and said she was thankful that “it’s starting to unravel” and that “the light is being shown on his tax plan.”

According to the Obama campaign, Richardson meant to say that people making under $250,000 won’t see their taxes increase.

Palin also repeated a debunked claim that “according to an independent analysis, our opponent’s new policies will destroy nearly six million jobs over the next decade.”

That analysis was actually conducted by the Heritage Foundation, a conservative think tank, which concluded in a recent report that “total employment” would fall an average of 589,000 a year under Obama's tax plan.

According to Heritage, that number represents the number of jobs that would exist over a ten year period, compared to the potential number of jobs that would exist under current tax law. The study itself says that while McCain’s plan would create more jobs, the number of jobs in the country would grow under either candidate.

As Palin wound down her remarks, a group in the rear of the audience began a noisy chant of "John McCain! Not Hussein!" - but the governor did not appear to hear or acknowledge them.

The Statement: Speaking at a campaign event Saturday, Oct. 25, in Reno, Nevada, Democratic presidential candidate Sen. Barack Obama described elements of his tax plan and said, "Under my plan tax rates will actually be less than they were under Ronald Reagan." He made the same statement earlier in the week at campaign events in Richmond, Virginia, and Miami and Tampa, Florida.

Get the facts!

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Sen. McCain's new tv ad focuses on taxes and Sen. Obama's conservation with Joe Wurzelbacher.

(CNN) – Sen. Barack Obama’s campaign trail encounter with Ohio plumber Joe Wurzelbacher continues to play a prominent role in Sen. John McCain’s economic message during the final weeks of the race for the White House.

McCain’s new television ad, “Sweat Equity,” begins with footage of Obama’s exchange with Wurzelbacher, now known simply as “Joe the plumber,” followed by images of would-be voters declaring “I’m Joe the plumber.”

“I'm supposed to work harder... Just to pay more taxes. Obama wants my sweat to pay for his trillion dollars in new spending?,” the ad’s script also says.

The McCain campaign says the 30-second spot will air in “key states.” The ad follows up on a Web video launched last week that also features the Wurzelbacher exchange with Obama .

(full script of “Sweat Equity” after the jump)

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Was Sen. McCain right about Sen. Obama and taxes? Get the facts!

The Statement: Speaking during a campaign stop Monday, Oct. 20 in Belton, Missouri, Republican presidential nominee Sen. John McCain criticized Democratic opponent Sen. Barack Obama's proposals on taxes. "The Obama tax increase would come at the worst possible time for America, and especially for small businesses like the one Joe dreams of owning," McCain said. "The small businesses Senator Obama would tax provide 16 million jobs in America."

Get the facts!

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Was Sen. Obama about Sen. McCain's positions on the Bush tax cuts? Get the facts!

The Statement: In a campaign stop Monday, October 20, in Tampa, Florida, Democratic presidential candidate Sen. Barack Obama criticized Republican opponent Sen. John McCain for comments he's made about taxes. "It's true that I want to roll back the Bush tax cuts on the wealthiest Americans and go back to the rate they paid under Bill Clinton. John McCain calls that socialism. What he forgets is that just a few years ago, he himself said those Bush tax cuts were irresponsible. He said he couldn't 'in good conscience' support a tax cut where the benefits went to the wealthy at the expense of 'middle-class Americans who most need tax relief.' "

Get the facts!

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The Statement: In an interview on Fox News' "Hannity & Colmes" on Wednesday, October 8, Republican presidential candidate Sen. John McCain repeated his assertion that Democratic presidential candidate Sen. Barack Obama's tax plan "raises taxes on small business income."

Get the facts!

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The statement:At a campaign stop Monday in Columbus, Ohio, Sen. John McCain said Sen. Barack Obama "has proposed more than $860 billion in new spending."

Get the facts!

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