Biden’s Tax Gaffe

Last week Democratic Vice Presidential Nominee Joe Biden misspoke during a television interview and broke from the Obama’s campaign in saying that no one making under $250,000 would pay more in taxes under an Obama administration. The campaign quickly tried to clarify by saying, “anyone making between $150,000 and $250,000 wouldn't get a tax cut but also wouldn't pay higher taxes.” But the interview left many people wondering “will families making less than $250,000 get a tax cut under President Obama, or not?”

Well according to WSJ.com’s opinion section, “we suspect what's going on here is more than Mr. Biden's normal gift of gaffe. As with his admission that a President Obama would quickly be tested by our enemies, the Delaware rambler was stumbling into the truth. An Obama Administration couldn't possibly pay for a tax cut for 95% of Americans by raising taxes on a mere 5%. Those 5% don't make enough money, or at least they won't after they find ways to shelter more of their income when their tax rates rise.

Just as Bill Clinton promised a ‘middle-class tax cut’ in 1992 only to raise taxes on the middle class in 1993, Mr. Obama will quickly find that his tax-revenue math doesn't add up. Add in the demands on Capitol Hill to spend more and to offset the Alternative Minimum Tax, and our bet is that even $150,000 would soon prove to be a moving tax target. Remember when the AMT was only supposed to hit 21 millionaires? Next year, without relief, it could hit 26 million taxpayers. Tax increases always hit the middle class because that's where the money is.”