Monday, November 24, 2008

Obama to Delay Repeal of Bush Tax Cuts

President Elect Barack Obama has not yet even taken office, and yet he is already looking to break some of his campaign promises. According to Washington Wire, “A senior adviser to Obama confirmed that New York Federal Reserve President Timothy Geithner would be the administration’s nominee for Treasury secretary, and added that the Obama team was gratified by the late rally on Wall Street on Friday after news of the pick leaked out.”

During an appearance on NBC’s “Meet the Press,” Obama economic adviser William Daley suggested that the incoming administration would reconsider whether to quickly increase taxes for Americans earning more than $250,000 per year.

Daly, who was commerce secretary under former President Bill Clinton and is the brother of Chicago Mayor Richard Daly, said it looks “more likely than not” that Obama would not seek legislation to repeal President George W. Bush’s cut in the tax rate for the wealthiest Americans before it is scheduled to expire after the 2010 tax year. Bush cut the top rate to 35% from 39.6% in 2001.

Obama had promised to restore the top tax rate to its earlier level, while cutting taxes for the middle class.

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