Americans for Tax Reform: Obama Admits His Tax Hikes Would Harm Economic Growth

In a reversal, Obama now admits his tax hike plan has consequences

Last update: 5:30 a.m. EDT Sept. 9, 2008

WASHINGTON, Sept 09, 2008 /PRNewswire-USNewswire via COMTEX/ -- In a stunning reversal, Barack Obama has finally admitted his proposed tax increases will cause harm to the economy.

During an interview shown on ABC's This Week, host George Stephanopoulos asked Obama if he would still enact tax increases if there was a recession upon taking office.

Obama replied: "I think we've got to take a look and see where the economy is. I mean, the economy is weak right now. The news with Freddie Mac and Fannie Mae I think, along with the unemployment numbers, indicates that we're fragile." (Video clip available at www.youtube.com/watch?v=_7fSZiZG91o)

Obama's admission stands in stark contrast to his previous statements denying that his tax increase proposals would change behavior or damage the economy.

For example, during a March 27 interview on CNBC's Closing Bell, Obama said "I think that we can have a capital gains rate that is higher than 15 percent. If it-and if it-you know-when I talk to people like Warren Buffet or others and I ask them, you know, what's-how much of a difference is it going to be if it's 20 or 25 percent, they say, look, if it's within that range it's not going to distort, I think, economic decision making." (Video clip available at www.youtube.com/watch?v=uNLvgFh16xw)

"Obama knows his tax plan will hurt the economy," said Grover Norquist, president of Americans for Tax Reform. "The only question he has is whether to raise taxes now or later."

Americans for Tax Reform (ATR) is a non-partisan coalition of taxpayers and taxpayer groups who oppose all federal, state and local tax increases.

SOURCE Americans for Tax Reform