Economy

Is U.S. Headed For Higher Taxes & European-Style Capitalism?

There's lots of chatter today about the talk that the Obama administration isn't completely quashing the possibility of higher taxes, including on the middle class, as a way to shrink the federal government's gaping budget deficits. Politico notes that Treasury Secretary Timothy Geithner "didn't rule out new taxes" when he was on the Sunday talk shows, and that while top Obama economic adviser Lawrence Summers downplayed the possibility he also "offered a gaping caveat later" by saying the president can't rule anything out.

Meanwhile, on Morning Edition today NPR's John Ydstie looked at the ways the U.S. and European economies seem to be moving toward each other. And Europe's more socialist-style of capitalism, he notes, doesn't come cheap. American ex-pat Allegra Milan, who now lives in Germany, talks about the benefits she gets — and the fact that nearly half her salary goes to taxes:

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And also on Morning Edition, investor Wilbur Ross told co-host Steve Inskeep that he thinks of Washington as "the new Wall Street" because of the federal government's growing involvement in the financial sector of the economy.

During last year's presidential campaign, Republican presidential nominee John McCain and his running mate — then Alaska Gov. Sarah Palin — said an Obama administration would push many folks' taxes higher and would steer the economy toward the socialist side of the pendulum.

This question begs to be asked:

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