NOW THEY TELL US - AT 9:12 A.M. ET:  It's the tax thing.  It's with us again.  Someone figured out that the government doesn't have enough money to write all those checks that are being written.  Cash for clunkers may run out of cash.  Cash for medical care will certainly run out of cash.  And Band-Aids.  Here is the latest on the tax question:

WASHINGTON (AP) -- President Barack Obama's treasury secretary said Sunday he cannot rule out higher taxes to help tame an exploding budget deficit, and his chief economic adviser would not dismiss raising them on middle-class Americans as part of a health care overhaul.

As the White House sought to balance campaign rhetoric with governing, officials appeared willing to extend unemployment benefits. With former Federal Reserve Chairman Alan Greenspan saying he is "pretty sure we've already seen the bottom" of the recession, Obama aides sought to defend the economic stimulus and calm a jittery public.

Treasury Secretary Timothy Geithner and National Economic Council Director Larry Summers both sidestepped questions on Obama's intentions about taxes. Geithner said the White House was not ready to rule out a tax hike to lower the federal deficit; Summers said Obama's proposed health care overhaul needs funding from somewhere.

And...

During his presidential campaign, Obama repeatedly vowed "you will not see any of your taxes increase one single dime." But the simple reality remains that his ambitious overhaul of how Americans receive health care -- promised without increasing the federal deficit -- must be paid for.

COMMENT:  A British commentary today notes that Obama needed the Reagan Democrats to win the election.  If he raises taxes, though, in defiance of his pledge, he will almost certainly lose them, fracturing the already strained Democratic coalition. 

The tax issue is going to erupt.  Not only would the president be breaking a pledge if he attempts to raise taxes on the middle class, he'll be raising taxes in a weak economy, a prescription for disaster. 

When numbers don't add up, something is wrong.  And the numbers aren't adding up.

August 3, 2009