Geithner refused to rule out raising taxes on the people which Obama promised repeatedly would not have their taxes raised.
Video embedded below.
Allahpundit comments; "how many presidents in U.S. history have needed to start backtracking on one of their chief campaign promises within their first six months in office? Even Dubya didn’t reverse himself on nation-building until eight months in, and in that case his hand was forced by 9/11. What’s The One’s excuse? Oh, right: It’s Bush, of course, as you’ll hear Geithner “explain.”".
He then explains the political problem Obama and the Democrats face; "I’ve always thought Obama and the Democrats would postpone tax hikes until after the midterms to minimize the electoral damage, but if they do that, they risk being swallowed up by voter anxiety about spiraling deficits."
Neither option is pretty for the Democrats, or the country for that matter. The best option is the third. That is to pull back hard on the spending. It does not seem that the Democrats are considering that one though.
More at http://hotair.com/archives/2009/08/02/video-turbotax-tim-wont-rule-out-raising-taxes-on-the-middle-class.