Obama Administration May Modify Tax Hikes
March 5th, 2009 at 5:49 pm - by admin
President Barack Obama is seeing resistance from the Democratic Party to his ideologies of eliminating last-generation tax deductions for upper-class Americans implemented by former President George W. Bush, which could force the budget to be rewritten to provide a more equal distribution of tax collection.
The budget, proposed last week, would eliminate deductions for mortgage interest and donations past a certain point — the plan, the government says, could increase taxes on upper-class taxpayers by up to $300 billion over 10 years. The mortgage interest adaptations could cause a further depression on house prices.
Timothy Geithner, Treasury Secretary, suggested Wednesday that the administration was considering adapting, modifying or eliminating the proposal to satisfy the upper-class group.
Problems arising with the Democratic body are indicative of the problems which the entire restructuring of the tax system could face — Republicans across the country have already expressed issues with both the intent to increase high-income taxes, but also the changes with climate-change legislation.
“We recognize there are other ways to do this. We are willing to listen to all ideas that meet these broad principles,” said Geithner.


