McCain Seemingly Backtracks on No New Taxes

[strandinthewind]

McCain backs off his no-new-tax pledge By CHARLES BABINGTON, Associated Press Writer
42 minutes ago



Republican presidential candidate John McCain's signal that he may be open to a higher payroll tax for Social Security, despite previous vows not to raise taxes of any kind, is drawing sharp rebukes from conservatives.

McCain's shift has come in stages, catching some Republicans by surprise. Speaking with reporters on his campaign bus on July 9, he cited a need to shore up Social Security. "I cannot tell you what I would do, except to put everything on the table," he said.

He went a step farther Sunday on ABC's "This Week," in response to a question about payroll tax increases.

"There is nothing that's off the table. I have my positions, and I'll articulate them. But nothing's off the table," McCain said. "I don't want tax increases. But that doesn't mean that anything is off the table."

That comment drew a strong response from the Club for Growth, a Washington anti-tax group. McCain's comments, the group said in a letter to the Arizona senator, are "shocking because you have been adamant in your opposition to raising taxes under any circumstances."

During a town-hall meeting in Sparks, Nev., McCain insisted anew Tuesday that he would not raise taxes if elected.

He frequently has promised not to raise taxes.

At a July 7 town-hall meeting in Denver, he said voters faced a stark choice between him and Democrat Barack Obama.

"Sen. Obama will raise your taxes," McCain said. "I won't."

In a March 16 interview with Fox News' Sean Hannity, McCain said he would cut taxes where possible, and not raise them.

"Do you mean none?" Hannity asked.

"None," McCain replied.

Both candidates have said Social Security's funding formula needs to be changed to ensure the program's long-term viability. Obama has called for imposing a new payroll tax on incomes above $250,000. Currently, only incomes up to $102,000 are subject to the 12.4 percent payroll tax, which employers and employees split evenly.

When Obama announced his plan June 13, McCain's top economic adviser, Douglas Holtz-Eakin, told reporters that as president McCain would not consider a payroll tax increase "under any imaginable circumstance."

McCain has made no specific proposals for Social Security, refusing to rule in or out anything to strengthen the benefit program for retirees and the disabled. Both candidates have said that, if elected, they would try to work out details with Republican and Democratic lawmakers.

Asked for an explanation of McCain's latest comments, campaign spokesman Tucker Bounds said the Arizona senator "has a clear and demonstrated record of opposing tax increases. John McCain is going to cut taxes" and improve government discipline, he said.

Promises never to raise taxes have bedeviled past Republican officeholders. Before being elected president in 1988, George H.W. Bush said, "Read my lips, no new taxes." But facing severe budget problems, he reneged on the promise. Some conservative groups never forgave him.

http://news.yahoo.com/s/ap/20080729/...r/mccain_taxes

[ajmccarrell]

He may lose my vote if this is actually true. I'll probably abstain.

[strandinthewind]

From what I see now -- it is true. So, I agree with you that this will be the nail in the coffin for him amongst the so called conservative base.

[strandinthewind]

Note - that the SS payroll tax stops at like $95,000 is assinine. If they would get rid of that limit, SS could be funded.

[ajmccarrell]

Originally Posted by strandinthewind

Note - that the SS payroll tax stops at like $95,000 is assinine. If they would get rid of that limit, SS could be funded.

Agreed. I also think it should be means tested. I mean, if you make more than $50,000 at retirement age, do you really need it? I just think the timing would be REALLY bad for a payroll tax hike. Also, there should be some sort of consideration for businesses, as they would have to cough up half of the extra cash needed to fund the increase. It would mean lower wages for everyone. It should be phased in slowly, so it doesn't cripple our economy if it is to be done.

[strandinthewind]

Originally Posted by ajmccarrell

Agreed. I also think it should be means tested. I mean, if you make more than $50,000 at retirement age, do you really need it?

Well, it is not set up that way. Congress would have to re write the act, which I think they will never do.

But I agree with you, though I'd raise it to $100,000.

[ajmccarrell]

Originally Posted by strandinthewind

From what I see now -- it is true. So, I agree with you that this will be the nail in the coffin for him amongst the so called conservative base.

I'll wait and see what he says about it. Sometimes on campaigns, people just say stupid stuff out of exhaustion. I mean, Obama and the 57 states, hello! I know he knows there aren't 57 states. Both of these guys are very tired and McCain may have gotten confused, like he seems to lately. I'll wait a few days before I make a final judgement. I listened to the sound-bite and it sounds like he may have been saying something for effect without realizing the consequences of the statement. I mean, the guy has a very long track record of opposing taxes, so one comment may be meaningless, unless he ACTUALLY PLANS on raising the tax.