Obama, Republicans tout benefits of tax compromise
December 11th, 2010
11:30 AM ET
12 years ago

Obama, Republicans tout benefits of tax compromise

(CNN) - While President Obama continues to face backlash from members of his own party for negotiating a deal that includes extending the Bush-era tax cuts for millionaires, Republicans say the compromise is "encouraging."

Incoming Rep. Kristi Noem, R-South Dakota, said in the weekly GOP address Saturday that "it's certainly encouraging to see that Obama has proposed a potential agreement to stop all the tax hikes scheduled to take effect on January 1st."

"Failing to stop all the tax hikes would mean taxes would go up for small businesses all across this country, destroying more jobs," Noem added.

House Democrats want to extend the current lower tax rates only for those earning up to $200,000 a year, or families earning $250,000 a year, while raising the rates of those with higher incomes to 1990s levels.

But Republicans have insisted on extending the tax cuts, which expire at the end of the year, for all income levels, charging that it would be harmful to raise taxes in a weak economy.

In her address, Noem championed the tax compromise as a way forward in instilling confidence in the weak economic climate.

"While stopping all the tax hikes would be a good first step, this alone won't eliminate the job-killing uncertainty hanging over our employers and entrepreneurs," Noem said. "That's why we need to focus on cutting spending and reducing the size of government. The American people want us to stop spending dollars we don't have."

But in addition to Democrats who oppose extending the Bush-era tax cuts, some Republicans remain opposed to the deal, particularly conservatives who are upset that the compromise would increase the deficit and raise certain taxes.

The Congressional Budget Office estimated that the deal, which also includes a 13-month extension of unemployment benefits, tax credits and a payroll tax holiday, would add $893 billion to the deficit over the next five years. The CBO score released Friday showed that the provision extending the Bush-era tax cuts would increase the deficit by $400 billion, making the extension the highest-priced item in the compromise.

In his own weekly address Saturday, Obama acknowledged that the deal is not perfect.

"It wasn't easy, and it's by no means perfect. And as with any compromise, everybody had to live with elements they didn't like. But this is a good deal for the American people," Obama said.

Obama urged Congress to pass the tax compromise, warning that failure to do so would mean middle class families would have to pay about $3,000 more in taxes next year.

"That's unacceptable to me. Not when we know that it's the middle class that was hit the hardest by the recession. And not when we know that taking this money out of the pockets of working people is exactly the wrong thing to do to get our economy growing faster," Obama said.

Filed under: Kristi Noem • President Obama • Tax deal
soundoff (16 Responses)
  1. the real ib

    The democrats that are fighting this want to look big because they are standing up against the rich or rather think they are. They are doing nothing but causing the unemployment rate to go higher and hurting the middle income and poor people if they don't extend the current rates. This is not a tax cut for the rich but rather keeping the rate they are now paying so they will invest more money and create more jobs which are so badly needed. But the democrats spin that fact and in effect the very people they claim to look out for will be the ones most hurt by their actions and people will blame the republicans; same ole democrats. Disgusting.

    December 11, 2010 11:43 am at 11:43 am |
  2. GI Joe

    Another loud-mouth Bachmann-type that was sent to DC by a bunch of "lonely old limp men" to inflict ignorance on the rest of us.

    December 11, 2010 11:44 am at 11:44 am |
  3. sajjad nasir

    this johnny come latley Michelle Bachman 20years back look alike sarah palin lite think she knows how to streghtnen the economy all they all claim about being small business owners all they know how to run is a a little church bake sale or a gun range non of these tea baggers who got elected do know crap of big business or nor they have a ceo mentaltiuty

    December 11, 2010 11:47 am at 11:47 am |
  4. Kenneth Close

    Best part is it puts the money back in our pockets instead of DC. One less party for the Politicians I guess.

    December 11, 2010 11:49 am at 11:49 am |
  5. jim

    Either a liar or stupid. This is not a tax on businesses this is a tax on personal income.

    December 11, 2010 11:57 am at 11:57 am |
  6. Welib

    The GOP's defiinition of small business is very different from what defines these businesses in this bill. Small businesses that make 250 thou and under are the ones that would get tax breaks. Republicans want huge corporations included in this and it's just a ridiculous scam by the right. Republicans talk about helping small businesses but they've blocked every bill that will help 'real' small business and they're trying to reroute funds to companies that don't need them.

    The other thing that the right just doesn't get no matter how many times you tell them or how much proof you give them, that those tax cuts for the wealthy and the corporations DO NOT CREATE JOBS. I am so sick of listening to this garbage come from the right. Do they have a mental block that they can't absorb what's in front of them unless it's propaganda.

    December 11, 2010 11:59 am at 11:59 am |
  7. thor

    The CBO estimates this to add 900 bilion dollars to the deficit over the next 5 years.Do we really want to do that?

    December 11, 2010 12:05 pm at 12:05 pm |
  8. kyle

    The Bush tax cuts do not create jobs in America, if they did the GOP would be against them, because they are out to destroy the middle class.

    December 11, 2010 12:15 pm at 12:15 pm |
  9. dominickspez

    We have now entered the Twilight Zone --Obama fights for the Bush tax cuts–loses with his own party–then brings in Bubba no less –who also champions Bush!!–whats next?-Tell you one thing Obama has so destroyed the credibility of the office of President so badly world wide–he might as well step down -or be impeached by his own party for incompetence–and then what?–President Biden–no way–next- Presidet Pelosi if they move fast-pleeaassee-only option is to draft back Bush to implement his own policies–then Bubba can challenge him in 2012–on what platform? who kows?-nuff said

    December 11, 2010 12:17 pm at 12:17 pm |
  10. Mad man

    Gee, where is Sniffit to tell us all from his economic text book cliff notes how creating stability in the volatile atmoshphere of free enterprise that this Liberal left Congress and Administration has created will "steal" governments money away from them. I just listened to some 11 term douche bag Liberal House Representative state their case on how unemployment benefits create jobs... They obviously have never been on the receiving end of an unemployment check if they think that you can buy food, buy gas, and pay your mortgage for your family on the amount received and that spending of that minimal amount creates commerce? They are out of their collective minds, and Sniffit, you sound like the typical self anointed and self proclaimed intellectual liberal spewing your all knowing BS based on leftist propaganda from MSNBC. Stability and liquidity in the market and economy create commerce, not taxation!

    December 11, 2010 12:18 pm at 12:18 pm |
  11. TA

    They think the crime is up now, just keep waitin let peoples unemployment run out, they will see a big crime wave across the U.S. Nobody really cares about the unemployed else they wouldn't have waited until it was about to expire to extend it.

    December 11, 2010 12:18 pm at 12:18 pm |
  12. ...Next the outsourcing of the Presidency...

    Obama delegated his duties to former Pres Clinton by exiting from the Press-conference and leaving Clinton to inform the American people regarding the latest Tax-farce.......Extending more spending adds to the dountrys' deficit and debt and will not bring the countrys' Fiscal House in order.................WAKE UP WASHINGTON..........................................................!

    December 11, 2010 12:20 pm at 12:20 pm |
  13. anthony

    I am surprised that more people have not figured out the GOP. All Republicans want are tax cuts. If they get their tax cuts, they can care less about the deficit or any other stuff. Even though Republicans attacked the stimulus bill, one third of which was tax cuts, they immediately agreed with Obama to extend the Bush tax cuts. The Congressional Budget Office said that the new tax cut deal costs more than the stimulus bill (893 billion for the tax deal, 787 billion for the stimulus bill). Not surprisingly, the Bush tax cuts will add more than 400 billion to the deficit, and the payroll tax holiday will add another 225 billion. The adjustment of the estate tax rate and limitation of the estate tax to inheritances of more than 5 million will add more to the deficit. Do Republican care? No.

    December 11, 2010 12:23 pm at 12:23 pm |
  14. sharon

    Pres Obama back was up against the wall. Even some of the Dems voted along with Repubs. Pres Obama could have stand his ground and lose everything incl unemploy benefits and no tax cuts for the middleclass & poor. Instead heagreed with them partial so he can get what he wanted. It's like Damn if you Damn if you don't. Republicans we are watching you like hawk...2012 is just around the corner.

    December 11, 2010 12:28 pm at 12:28 pm |
  15. They ought to change from the elephant to the hippo...

    I think America HAS certainty. We're certain that the GOP, party of the rich, will put party before country.

    December 11, 2010 12:44 pm at 12:44 pm |
  16. independent

    The Democratic Congress should not do what the former Republican Congress. We are in the mess we are now because the Republican Congress abdicated their responsibilities vis a vis being a separate branch of government. They allowed all the excesses of the Bush Administration. This Congress, even in its final days, should do what all Congresses should do: represent the people and their constituents not just rubber stamp the President's wishes.

    December 11, 2010 01:02 pm at 1:02 pm |