Promises, promises: Here come the back-door tax hikes
Remember the economic analysts who insisted that President Obama couldn't possibly balance all of his big-government agenda by increasingly taxing only “millionaires and billionaires”? Well, the chickens have come home — not to roost but to “deposit” on those who bought his empty promise.
No less than the liberal-inclined Tax Policy Center says Mr. Obama's budget adds up to a substantial tax hit. You see, Obama wants to move the goal posts to sack the middle class.
How? By changing the way the government gauges inflation, moving from the consumer price index (CPI) — used to make cost-of-living adjustments in entitlements like Social Security — to what's called a “chained CPI,” which, in effect, lowers those adjustments.
The upshot “would push middle-class families into higher tax brackets more quickly,” opines Investor's Business Daily. The Tax Policy Center's Joseph Rosenberg projects a tax hike of $100 billion over the next 10 years.
“On the tax side it's effectively an increase in the tax rates in a sort of backdoor way, and on the benefit side, it's a cut in Social Security.”
Never mind the smack for middle-income earners from ObamaCare.
The president probably would get his surreptitious tax increase, too, if it didn't cut into Social Security. Some Democrats already are complaining about that. But rest assured, as Obama's re-election demonstrates, there's more than one way to dupe, then pocket-dive, the middle class.