During the morning edition of Fox News Sunday, host Chris Wallace challenged Sen. John McCain to settle his supposed flip-flopping on tax cuts for the wealthy.
Wallace asked McCain whether he would oppose higher income tax rates as part of a deal with Democrats to avert the so-called "fiscal cliff," McCain said, “I would be very much opposed to raising tax rates. But I do believe we can close a lot of loopholes... Things like a limit on the amount of deduction of charitable giving. A limit on the amount you can take on your home loan mortgage deduction.”
Wallace then faced up to his answer by noting the fact that early in the 2000s, McCain voted against the Bush tax cuts because they didn't benefit the middle class.
“You said too many of the benefits go to the wealthy, not to the middle class,” Wallace said to McCain. “But if you could get a solid deal with, as you call for, spending cuts and entitlement reform... why is the 35 percent top tax rate which you opposed sacred?”
McCain replied to Wallace: “Because every economist that I respect says if you raise tax rates at this time, in fact, the president even said that a couple of years ago, it harms the economy.”
He further added: “We are trying to help the economy. And, so, unless I can be convinced that raising tax rates will be beneficial, then obviously I think there’s reason and ground for my position. But I also believe that we can and must get an agreement, otherwise I think, first of all, the markets are going to start reacting.”