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Dems Balk at Obama Tax on Rich

Increased burden on high-tax states to fund health reform, claims admin

By Gabriel Winant,  Newser User

Posted Feb 27, 2009 9:40 AM CST

(Newser) – President Obama is about to get into his first tax battle and, surprisingly, it might be with Democrats. Politico reports that Obama’s proposal to limit the federal tax deduction of state and local taxes for the wealthy is running into opposition from officials from high-tax, largely Democratic states. Obama’s fight will be with senators like Chuck Schumer, who calls the idea “a dagger aimed right at the heart of New York.”

Obama’s budget director stresses, “All that we are doing is returning the rate to what it was at the end of the Reagan administration.” The White House also, slyly, links the tax hike to health care reform. This is artificial—it’s all the same pot—but makes it harder for blue state senators to oppose.

Budget Director-designate Peter Orszag testifies on Capitol Hill in Washington, Jan. 14, 2009, before the Senate Homeland Security and Governmental Affairs Committee hearing on his nomination.
Budget Director-designate Peter Orszag testifies on Capitol Hill in Washington, Jan. 14, 2009, before the Senate Homeland Security and Governmental Affairs Committee hearing on his nomination.   (AP Photo/Susan Walsh)
Then-Sen. Barack Obama, D-Ill., right, listens as Sen. Charles Schumer, D-N.Y., speaks, June 7, 2007, before the Senate Judiciary Committee hearing on legislation to prevent voter fraud.
Then-Sen. Barack Obama, D-Ill., right, listens as Sen. Charles Schumer, D-N.Y., speaks, June 7, 2007, before the Senate Judiciary Committee hearing on legislation to prevent voter fraud.   (AP Photo/Lauren Victoria Burke)
President Barack Obama speaks about his fiscal 2010 federal budget, in the Eisenhower Executive Office Building, Feb. 26, 2009. Treasury Secretary Tim Geithner is at left.
President Barack Obama speaks about his fiscal 2010 federal budget, in the Eisenhower Executive Office Building, Feb. 26, 2009. Treasury Secretary Tim Geithner is at left.   (AP Photo/Charles Dharapak)
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New York no doubt is the fulcrum of this. It’s something that affects us disproportionately. - Mark Jaffe, director of the Greater New York Chamber of Commerce

I’d rather have that money going to health care reform than just asking for money and having it go in the pot somewhere. - Budget official

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COMMENTS
Showing 3 of 11 comments
Doctor-Zaius
Mar 1, 2009 2:11 AM CST
Some of the Dems have to make a show of fighting this or they run the risk of the Pubes demagoging this issue the same way they did it in 94.
Shannonals
Feb 27, 2009 9:09 PM CST
clroger your most likely like joe the plumber, I'm quite certain you owe back taxes
Guest
Feb 27, 2009 8:02 PM CST
We're about to find out who wants a world-class nation paid for by the rich and who wants slums with bad roads and bad schools paid for by the poor.

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