We learned a few things yesterday with President Obama’s announcement that he wants to extend the current individual income tax rates for one more year, but only for those making less than $250,000 a year:
- The current rates — commonly described as the “Bush tax cuts” even though they have been in full force for nine years, two years of which required Obama’s signature — apply to more than just “the rich.” Otherwise, how could they be extended for everyone who isn’t rich?
- Even Obama understands that the economy is still too weak to withstand a major tax hike during the next presidential administration (his second, or Mitt Romney’s first). That is a pretty strong, if tacit, admission that his entire first term has failed to see a middle-class recovery of any consequence, just a stop to the bleeding — at most. Once upon a time, he theorized that such a result would lead to a “one-term proposition” for himself.
- This move has nothing to do with being serious about the deficit,