Clinton advocated for a hike on the rich after the economic situation improves. Clinton: New taxes only after upturn

Former President Bill Clinton’s position on when the government should raise taxes took another turn during his Wednesday night appearance on the “Late Show with David Letterman.”

Clinton said last night he does not think now is the time to raise taxes on anyone because the economy is not growing, but advocated for a hike on the rich after the situation improves.


“Should you raise taxes on anybody right today — rich or poor or middle class? No, because there’s no growth in the economy,” Clinton said on the “Late Show.” “Should those of us who make more money and are in better position to contribute to America’s public needs and getting this deficit under control pay a higher tax rate when the economy recovers? Yes, that’s what I think.”

With that, Clinton reemphasized his support of the “Buffett Rule,” President Barack Obama’s proposed tax increase for those earning annual incomes of $1 million or more — with one critical difference.

Obama’s proposal would take effect in 2013, but Clinton says he prefers a much less specific time to institute the Buffett Rule: whenever the economy recovers.

On Friday, Clinton shot back at an American Crossroads ad that used a September interview he gave to Newsmax to attack Obama’s jobs plan. Left out of Clinton’s statement was the critical issue of timing he raised to Newsmax and Letterman.

In the Newsmax interview, Clinton said he opposed raising taxes while the economy remained down — a statement he reiterated on last night’s “Late Show.”

“I personally don’t believe we ought to be raising taxes or cutting spending, either one, until we get this economy off the ground,” Clinton told Newsmax in the Sept. interview. “This has been a dead flat economy.”

American Crossroads leapt on the comments, going up with an ad last week hitting Obama’s plan to raise taxes on wealthy Americans featuring lines from Clinton’s interview.

“I personally don’t believe we ought to be raising taxes,” Clinton says in the ad. “It won’t solve the problem.”

The two lines, however, were more than three minutes apart in his discussion with Newsmax — the second statement came later in the interview when the former president said he would pay the increased tax on the wealthy. “It’s okay with me, I’d pay more, but it won’t solve the problem,” he said.

Clinton quickly shot back at American Crossroads, issuing a statement last Friday saying the group mischaracterized his statements. But unlike his comments to Newsmax and Letterman, Clinton left out his oft-repeated argument in favor of boosting millionaires’ taxes when the economy “recovers” or gets “off the ground.”

“The Republican Group American Crossroads has used a quote from me in a video opposing President Obama’s jobs plan and the ‘Buffett Rule,’” Clinton said in a statement to POLITICO Playbook on the ad. “The advertisement implies that I opposed the ‘Buffett Rule.’ In fact, I support both the American Jobs Act and the ‘Buffett Rule.’ I believe that it’s only fair to ask those of us in high-income groups — who have received the primary benefits of the last decade’s economic growth and the majority of its tax cuts as well — to contribute to solving our long term debt problem.”

“What I did say was that the ‘Buffett Rule’ cannot solve the problem alone. Reducing the debt requires three things: more economic growth, more spending cuts, and more revenue. Right now, the most important thing is to put America back to work. That’s why I support the American Jobs Act.”