Mixed Messages?

" But during his run for the White House Barack Obama told supporters he would not under any circumstances. Raise taxes on the middle class. But with the deficit soaring in a trillion dollar health care reform plan now not now on the table. President Obama's top economic adviser saying eight different tune this past Sunday. Here's what they said when asked about possibly raising taxes on the middle class."

" This is never a good idea absolutely. Cool things. Rule things out no matter what."

" We can't make these shows -- judgments yet about exactly what is gonna take and how we're gonna get there but the very important thing and no one is gonna care about the Mormon president has states. If for people to understand that we do not have the choice is a country. Then we want an economy is gonna grow in the future. Keep left in the -- to bring those -- of town."

" Of those comments put the White House in serious damage control mode. They got reportedly a ton of phone calls from Democrats even calling up to say. What the heck was that about. White house press secretary Robert Gibbs tried to dial things back with reporters on Monday."

" You can understand why people took what they said yesterday as -- and Summers. Trying to open the door well I hope you'll I hope you'll take my reiteration of this clear commitment. As an up and not -- that the door is closed they cannot openly pro rating the president's clear commitment in the clearest terms possible. He's not raising taxes on those lessons -- 50000 dollars you."

" So who are we to believe the president's top economic advisers or his Press Secretary. Steve Hayes of the weekly standard as my -- now he is also a Fox News contributor Steve good morning to you. Tonight and I -- I think a lot of people are scratching their heads because even though we heard the political appointee if you will Robert Gibbs -- say no no no no no. It's not Lawrence Summers the president's top economic adviser and Tim Geithner Treasury Secretary. Don't know what's going on with the president's economic agenda and his payment plans when it comes to health care reform how to get our deficit down and so on it's not these two guys don't talk to the president. So what do we make of life."

" Think it's it it therein -- problem I think this is sending mixed messages as -- putting it mildly. That the interesting thing to me -- you had until very recently these same two officials making arguments. In in quite say. Enthusiastic ways that they had to spend the time. They had to increased deficits in order to save the economy now they've basically done 180 and say look we may have to raise taxes. To get these deficits under control in order to save the economy so. In the matter of really just a couple months they're making not only conflicting arguments but I think polar opposite."

" Steve is that just honest I mean that it did the latest message that yes you know it's possible taxes are gonna have to go up to get this deficit under control because what I've heard from the left. Who -- those who criticize the health care reform plan is. It's not really on health care reform is of people left is that we wanna tax the rich for other purposes we want to reduce the deficit that's why we need attacks. And so is it all that surprising that you have these two top economics guys coming out saying we're not gonna rule out tax."

" Is on anybody right now. Now I don't think it is surprising I think it probably I don't look I don't think people are sitting at the White House right now thinking of ways. To tax the middle class and I don't think that's really what's going on here I think what what more likely happen. Is that these two. Policy wonks they're not political people as I think you aptly pointed out in in your question. These are policy -- they are talking about their thinking in broad strokes about the economy. And they know by doing math basic path. That what the president is proposing what he's trying to accomplish. He's not gonna work without a serious increase in revenues they're looking for places. In the abstract I think to come up with those new revenues and they've not they've decided that they don't -- box the president. By ruling anything out I think that creates problems we've had the president's own economic advisers in the latter stages of that. The presidential campaign last fall making arguments that raising taxes in recession. Is a terrible idea it's not good for the economy I think that that's a basic economic truth and I think if they actually put forward on this. They're gonna run into those sort of realities of of economic."

" Spot Steve of course they have calculated that no one cares about taxing millionaires you know on an -- they believe that politically that's an okay position to take OK we're gonna -- attacks anybody. But the so called millionaires and and may be people who make more than 250000 which you know I know that may include small businesses but they that they think that's politically palatable. The question is. Is that gonna trickle down because you're hearing more more from people who are below that level of income that they believe it will trickle down to them that they will get tax eventually."

" you could confiscate 100%. The income of millionaires that they're talking about. You know in the next couple years and it's not gonna pay what the president has proposed and what he is going to be proposing it simply doesn't work the math doesn't work. So I think that they run and a real problem that and then you've got of course all of that the ancillary. Issues and again basic economics that if you tax. The of the rich that the so called rich and small business owners at such an exorbitant rate it will have. Dramatic effects on who they're able to hire what they're able to spend their money in and and the ripple effects that the economy I think would be disastrous that's not sort of."

" That's -- pick up with you because you know today we get this report which unleaded gas I don't know maybe these economic advisers had before we had. Talking about the decreasing tax revenue that the government has received this year and it's the numbers are just awful. 22%. To a drop of 22% an individual income tax received by the federal government. Folks like you -- paying 22% less across the country because people got fired or didn't have jobs -- took -- That -- hit. Corporate income -- taxes down 57%. 57. So these guys at the top. They know -- taken in less -- country. Then we used to a lot less this year than we used to -- our revenues are down our deficit is up the spending is out of control and the question is. Where do we find the money we need. Money I mean could that be where the Summers and Geithner comments came from."

" That is absolutely -- the Summers and Geithner comments came from I think you're exactly right. The problem is I think when you when you look at raising tax rates when you look at the kinds of taxes that I think. Would be in play if they actually had to go down this this road this hypothetical road that Robert Gibbs doesn't want to talk about. There's it's on a straight line to raising taxes and raising revenues you know you have an example in my -- state of Maryland where. They passed the millionaire's tax and the revenues went down rather significant I think it was by. Some thirty plus percent so it's not a straight line and in fact he saw during the Reagan years that when. Tax marginal tax rates were cut he had revenues increase so you know. I think this is exactly what Geithner Summers are grappling with. I -- think they were in this case may be too honest and before Lago quickly is there any chance Barack Obama actually does allow attacks -- of the middle class. Before he runs for reelection. Yeah -- I don't expect it will be marginal tax rates or payroll taxes that's what the White House is gonna say. I think it's entirely possible that it looks at bat and if you look back anyone taken to value and a fiercely. Value bad -- right they've already raised that he's already broken his pledge he said he's not gonna raise taxes on the middle class in any form. He opposed the cigarette taxes 61 cents a pack back on April 1 that hits people. You know boom in largely below the poverty line disproportionately -- probably the most progressive tax in America."

" I get cap and trade that ticker trying to push through on capital college you know the Republicans called cap and tax that taxes lower income people will -- we'll see how it shakes out the very interesting split. From from the insiders on the White House we appreciate being here breaking down costs. --"