Business News, Tax Cuts, Obama News, Obama Watch, Politics
After his weekly address Saturday, Obama appeared inflexible on the expiring Bush Tax Cuts, hinting he would not compromise on extending tax cuts for top economic tier of Americans. Somehow, since that time, Obama has shifted. Perhaps he has seen the political writing on the wall, what it would look like if he and the dems refused to continue tax cuts for the 98 percent that didn’t fall into that top tier category purely to prevent tax cut extensions from happening for all Americans.
Stung by massive electoral losses in last week’s midterms, Barack Obama has attempted to shift to the center on one major issue facing Congress in its lame-duck session opening later this month — tax increases scheduled to hit at the first of the year. Republicans, however, pushed back almost immediately to the strategy Obama floated this weekend in attempting to “decouple” the higher bracket tax rates from the rest of the tax rates. Obama favors a permanent repeal of the tax hikes for middle- and working-class workers, but only wants a temporary extension of the top rates:
President Obama said a Republican proposal to preserve the full array of Bush administration tax cuts for two more years presents a “basis for conversation” that could lead to a compromise as lawmakers prepare to meet next week for a high-stakes showdown over taxes.
However, a senior House Republican on Sunday flatly rejected the option most favored by the White House: decoupling the Bush tax cuts that benefit the wealthy from the cuts that benefit the vast majority of Americans by extending each set of provisions for a different period of time.
“No, I am not for decoupling the rates,” Rep. Eric Cantor (R-Va.), the No.2 Republican in the House, said on “Fox News Sunday.” He echoed the GOP argument that such a move virtually would guarantee the eventual expiration of tax breaks in the upper brackets, where some of the most successful small businesses pay taxes.
“I am not for raising taxes in a recession, especially when it comes to the job creators that we need so desperately to start creating jobs again,” Cantor said. “I am not for sending any signal to small businesses in this country that they’re going to have their tax rates go up.”