(CNN) - President Barack Obama took his tax proposal on the road Tuesday, drawing up support for his call to extend the Bush-era tax cuts for households bringing in less than $250,000 per year.
In his remarks at a community college in Cedar Rapids, Iowa, Obama tried to beat back critics who point to the resulting tax hike on those falling above the quarter-million dollar threshold.
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"This has nothing to do with me wanting to punish success," Obama said at the campaign event. "For us to give a trillion dollars worth of tax breaks to folks who don't need it and aren't even asking for it, that doesn't make sense."
Obama signed a bill in 2010 to extend all of the Bush-era tax cuts until the end of 2012, citing the need for economic stimulus at the time. He has since vowed he would not permit another extension of the lower tax rates for wealthy Americans and re-emphasized that promise in a White House announcement on Monday.
His proposal would maintain the current lower tax rates for families making up to $250,000 for another year while allowing tax rates to return to 1990s levels for those earning more. The White House says 98% of Americans would benefit from the extension.
But the wealthy would still benefit if the Bush tax cuts are preserved for everyone else, since some of their income is also taxed at the lower rates of 10%, 15%, 25% and 28%.
Republicans have sharply opposed the president's policy, saying it could severely affect small business owners.
Mitt Romney's campaign, for example, criticized Obama's announcement as more bad policy from the president in the wake of the latest disappointing jobs report showing a stagnant unemployment rate of 8.2%.
"President Obama's response to even more bad economic news is a massive tax increase," said Andrea Saul, the Romney campaign's spokeswoman. "It just proves again that the president doesn't have a clue how to get America working again and help the middle class."
Unlike Obama, Saul continued, Romney "understands that the last thing we need to do in this economy is raise taxes on anyone."
Republicans also complained that Obama's plan would raise taxes on more than 900,000 small-business owners who report their income in individual returns as so-called flow-through enterprises.
On Tuesday, however, Obama called on Congress to avert a stalemate in the tax debate, making the case that both parties agree to keep the cuts for 98% of Americans.
"We disagree on the two percent," he said. "Let's not hold the vast majority of Americans hostage, while we debate the merits of another tax cut for the other two percent."
– CNN's Tom Cohen and Jeanne Sahadi contributed to this report.
"Since the Obama Administration is incapable of managing the federal government more efficiently,"
Spending rose by 1.3% under Obama. It rose by 8% + under Reagan and DUbya, by 4%+ under GHWB and 3%+ under Clinton. Please let us knwo when you've finally looked up the word "efficient" in the dictionary.
"Please leave the rich alone. I'm 73 years old I never once got a job from a poor man."
And I've never received a fair salary from a rich plutocrat.
Where does that leave us? Got a solution instead of faulty folk wisdom? If not, I'm all for taking the greedy to task.
Please. It was thrown up as a political stunt like most things Obama. Everything thing he says is an outright lie. Not even Democrats will do $250K & under in northern states. I am sure it would get as many votes as his Budet – zero. He is no credability.
@23 from Texas – Wow, this POTUS is a snake. I wish we had someone that knows at least the main points of economics 101
And you are merely proving that TX is still 47th in the nation in education. READ MY WORDS – decreasing taxes on the wealthy DOES NOT create jobs. Demand creates jobs. NO demand. NO jobs.
Based on an 8-hour workday, the research group estimates that Americans as a whole work:
• 1 hour 43 minutes to pay all federal taxes (income, sales, etc.)
• 1 hour 22 minutes to pay for housing and household operations
• 1 hour 8 minutes to pay for health and medical care
• 52 minutes to pay all state and local taxes (income, sales, etc.)
• 51 minutes to pay "other" taxes
• 40 minutes to pay for food
• 39 minutes to pay for transportation
• 28 minutes to pay for recreation
• 17 minutes to pay for clothing
Total of an 8 work day, 206 minutes of your work day to pay the government.
So all you idiots that want to work more for the government have lost your mind. How much is enough, Easy for me to understand the government should stop spending so much.
@granny – Please leave the rich alone. I'm 73 years old I never once got a job from a poor man.
Well sweetheart, bet you never got a job because that "man" was getting a tax break from the Fed's did you?
@Four and The Door – Since the Obama Administration is incapable of managing the federal government more efficiently, as long as they are in town we just have to pony up more cash. And debt. Not a great deal since they are not delivering anything they promise. We can do better. We know a guy who has a very good record of delivering results and not just talk.
Let's pretend for a moment that Mittens wins in Nov.. (assuming he can block RP at the RNC in Tampa). Let's also assume that Congress retains it's current make up. I'm going to be LMAO for the next four years reading all your whining comments about how Romney can't get anything done because the Dem's are blocking, filibustering and attaching unacceptable riders to any GOP initiated legislation. It's would be HILARIOUS – but it's not going to happen. We're too smart for that.
Please leave the rich alone. I'm 73 years old I never once got a job from a poor man.
See, if you were of the mindset that the federal government is the provider for all and responsible for the success and happiness of everyone in the nation then you would have to come up with some kind of logic to justify the handouts. Apparently someone suggested that it's the customers of a business who create the jobs and so the guy paying the salary of the new hire gets taken completely out of the sequence. Interesting how they try and finagle that logic together, isn't it? But you are correct. I have been hired to work in businesses more by their owners than by their customers. Sometimes the simple answers really do work.
Is that you Sniffit (you did tell me you are a practicing lawyer) angry with the rich of getting richer on tax cuts? Are you not one of the rich, lawyer make big bucks. Hypocrite!!!!!
Just refer to what Senator Reid says everytime a bill is sent to the Senate from the House. NO – We are not interested. Obama and (Mr. Giving) Biden can pay more taxes if they want to the Treasury since he thinks his money is so well spent.
"If you voted for Hussein.......", yes, we did vote for him, will do it again in november, together with our daughter voting for first time in her life, and 2 neighboors (retired, long time republicans)!!!!!!!!!!!!!!!!!!!!
And, we are not "Communist"!
Tea/Republicans are un-American, plain and simple. They cause socio-economic class warfare; then they deny it. They want to perpetuate it; and then blame Democrats for it. They want more for themselves and less for America. Their mantra: Let them eat cake. Un-American.
Hey what about Reagans trickle down your neck economics,its worked so far hasn't it?Over 70% of people believe the upper crust should pay their fair share,they have loop holes we don't have and most like Romney pay at a lesser rate than most of us middle class people.Pres.Clinton also raised taxes during a recession also and got out of it doing fine,so now is as good a time as any to do the same thing,raise them now..If Reagan had asked would republicans balk at him,hell no, he's was their messiah wasn't he!!Reagan raised taxes over 11 times when he was president and took away deductions on your 1040's as well,remember that!!Reagan also was the first president to steal from SocialSecurity with the help of Allan Greenspan to close the budget deficet when he was there,you republicans don't know that do ya,look it up its political fact that this republican snake did and he didn't credit your retirement account either,how's that clowns!!!
put the money that both of you are getting to run and balance the budget ; don't make the middle class an the elderly pay for the goverments mistakes !!!!!!!!
Potus is a SNAKE! Would i hold a door open for him or let him merge on the freeway? NOT A CHANCE!
"But the wealthy would still benefit if the Bush tax cuts are preserved for everyone else, since some of their income is also taxed at the lower rates of 10%, 15%, 25% and 28%."◄ etc.
I read your blogs every day but can't always comment because I am at work. I hope others take the time to read them because you make a lot of sense and I learn a lot... Thanks!
Obama 2012 – The Only Trusted Way Forward!
Raise tax rates on the upper 2% then if they don't start creating jobs raise their tax rates some more. Eventually they'll get stimulated to go out and make some more money thus creating jobs. I think the job creators are just a little to comfortable right now.
I want to know who these job creators are. Never has the GOP provided an example of this kind of employer. When have the wealthy really done enough to help the poor. These people who put their business finances on personal taxes are just wrong; keep business and personal seperate.
In 2010, when Obama warned of lost jobs from raising taxes, economic growth was 5.6%. Today, as he proposes raising taxes, it's 1.9 percent. Just saying.