(CNSNews.com) – In an Aug. 5, 2009 interview with MSNBC, President Barack Obama said it was bad economics to raise taxes in a recession. However, now the president is pushing for billions in new taxes as part of a deal to raise the debt ceiling.
“You don’t raise taxes in a recession,” Obama told MSNBC’s Chuck Todd.
Todd had asked Obama a question from Elkhart, Indiana resident Scott Ferguson who wanted Obama to explain why raising taxes in a recession could be good for the economy. Obama answered that it could not be good for the economy, saying it was just good economics not to raise taxes in a recession.
“First of all, he’s [Ferguson] right. Normally, you don’t raise taxes in a recession, which is why we haven’t and why we’ve instead cut taxes. So I guess what I’d say to Scott is – his economics are right. You don’t raise taxes in a recession. We haven’t raised taxes in a recession,” Obama said.
According to press reports, Obama is pushing for tax hikes as part of a deal with Republicans to raise the debt ceiling – the legal limit on federal borrowing – saying that raising taxes in a struggling economy is now the right thing to do.
“I believe we need a balanced approach,” Obama said in his weekly address June 9. “It means taking on spending in the tax code, spending on tax breaks and deductions for the wealthiest Americans.”