The Obama Tax Plan: Running Into Roadblocks

While some may have thought that the Obama tax plan would sail through Congress relatively unopposed, the reality is turning out to be somewhat different:

President Barack Obama’s call to raise taxes on high earners and greenhouse gas polluters met fierce opposition Tuesday from congressional Republicans and also a few Democrats. “I would never want to adversely affect anything that is charitable or good,” Rep. Charles Rangel, D-N.Y., chairman of the tax-writing House Ways and Means Committee, said of Obama’s call to limit high-income taxpayers’ itemized deductions for charitable donations and mortgage interest.

When the Chairman of the House Ways and Means Committee says nyet to the plan–fallen figure though Charlie Rangel is–you have to think that there are problems. (On this issue, be sure to check out Ben Domenech’s piece on what he justly calls “The War on Philanthropy.) More problems with Democratic defections are detailed here.

Other problems may stem from this passage:

. . . the Treasury secretary acknowledged that consumers could face higher electric bills because Obama would impose fees on greenhouse gas producers, including power plants that burn fossil fuels, by auctioning off carbon pollution permits. The goal is to reduce the emissions blamed for global warming while raising a projected $646 billion over 10 years.

“Now, if people don’t change how they use energy, then they will face higher costs for energy,” Geithner said.

“Nice saving account you have there. Be a shame if anything happened to it.” Effectively, the Tim Geithner is threatening people with an energy tax. Is this part of the supposed tax cut for 95% of the population?