Lawrence O'Donnell Admits: ObamaCare Will Enact Largest Tax Increase Ever

By Alex Fitzsimmons | March 17, 2010 | 11:55

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ObamaCare constitutes the largest tax increase in American history and shatters the previous record, admitted self-described socialist and MSNBC political analyst Lawrence O’Donnell yesterday.

When MSNBC anchor Joe Scarborough asked O’Donnell about the overhaul bill on his radio show, O’Donnell said ObamaCare raises taxes by almost $500 billion.

Obama’s historic tax increase nearly doubles the previous record-setting tax that O’Donnell helped craft as Democratic Chief of Staff to the Senate Finance Committee during the Clinton administration.

Even O’Donnell conceded that proposing the largest tax increase in American history during a painful recession and double-digit unemployment was a foolish misadventure.

“We liberal Keynesians do not raise taxes in recessions,” said O’Donnell. “We raise taxes when you’re making money. That’s when we raise taxes. And we love to do it.”

On the subject of groundbreaking admissions, remember when O’Donnell criticized the “unprecedented” use of reconciliation to pass ObamaCare.

A transcript of the exchange between Scarborough and O'Donnell, which aired yesterday and was replayed on today's "Morning Joe," can be found below:

[Clip from Joe Scarborough’s radio interview with Lawrence O’Donnell, which aired yesterday]

JOE SCARBOROUGH: Lawrence O’Donnell, you were part of the largest tax increase of all-time–

LAWRENCE O’DONNELL: –The biggest.

SCARBOROUGH: –with Bill Clinton. 250 billion dollars. You say Barack Obama’s health care bill will double that–

O’DONNELL: –Almost

SCARBOROUGH: –and will raise almost 500 billion dollars.

O’DONNELL: And do so–and here’s the really important economic principle that’s shocking for anyone who’s take the introductory course: they’re going to do it in a recession. You know...

[Laughter]

O’DONNELL: We, we, we liberal, we liberal Keynesians do not raise taxes in recessions; we raise taxes when you’re making money. That’s when we raise taxes. And we love to do it.

[Back in the studio]

SCARBOROUGH: And Lawrence does love to do it.

MIKA BRZEZINSKI, co-host of “Morning Joe”: Very good point.

SCARBOROUGH: But how fascinating, though, Lawrence, the liberal, has given Republicans a great talking point. Largest tax increase ever, in the middle of a recession, when real unemployment’s in double digits–that’s probably where the debate’s going to be and not on the slaughter rule this fall.