Obama: GOP Holding Middle Class Tax Cuts "Hostage"

By: Brian Montopoli
Topics: Republicans ,; Economy ,; White House ,; Obama Administration

(Credit: CBS News/ Josh Gross)

In a fiery speech in Ohio today, President Obama strongly stated his opposition to extending the Bush tax cuts for the wealthiest Americans and criticized Republicans for holding middle class tax cuts "hostage" in order to help the nation's highest earners.

The Bush tax cuts are set to expire at the end of the year. Mr. Obama said today that Democrats are ready "this week" to extend them for those making $250,000 or less. He advocates letting the cuts lapse for the 2 or 3 percent of Americans making more than that threshold, whose tax rates will increase either three percent or 4.6 percent.

"Now, I believe we ought to make the tax cuts for the middle class permanent," the president said today. "But the Republican leader of the House doesn't want to stop there. Make no mistake: he and his party believe we should also give a permanent tax cut to the wealthiest 2 percent of Americans."

"With all the other budgetary pressures we have -- with all the Republicans' talk about wanting to shrink the deficit -- they would have us borrow $700 billion over the next 10 years to give a tax cut of about $100,000 each to folks who are already millionaires," he added.

The president said people should "keep in mind" that the wealthy are perhaps the only group that saw their income increase under Republican rule and said that they are less likely to spend extra money than the less well off.

"So let me be clear to [House Republican Leader John] Boehner and everyone else: we should not hold middle class tax cuts hostage any longer," he said. "We are ready, this week, if they want, to give tax cuts to every American making $250,000 or less. That's 98, 97 percent of Americans."

"Now for any income over this amount, the tax rates would go back to what they were under President Clinton," he said. "This isn't to punish folks who are better off - God bless them. It's because we can't afford the $700 billion price tag. And for those who claim that this is bad for growth and bad for small businesses, let me remind you that with those tax rates in place, under President Clinton, this country created 22 million jobs, and raised incomes, and had the largest surplus in history. "

Boehner argued earlier today that extending the tax cuts for the wealthy will give more confidence to small businesses that are unsure of whether they will be hit with a tax increase.

"I think the president is missing the bigger point here," he said. "You can't have a strong economy if you're raising taxes on the very people you expect to invest in our economy to begin hiring people again."

More coverage:

In Ohio, Obama Challenges GOP on Tax Cuts
Text: President Obama's Speech on the Economy
David Axelrod: End GOP Tax Cuts for Millionaires
No Tax Cut Extension for Wealthiest Americans
Obama to Call for Business Investment Tax Breaks
Boehner Slams Obama Economic Plans
John Boehner Enjoys White House Spotlight

Brian Montopoli is a political reporter for CBSNews.com. You can read more of his posts here. Follow Hotsheet on Facebook and Twitter.

Brian Montopoli
Brian Montopoli is the senior political reporter at CBSNews.com.
Follow on Twitter »

26 Comments Have Your Say
Email Story Send to a Friend
Share This Tell Your Friends
Tweet This Tweet This
More Share It

Add a Comment

See all 26 Comments


by N1Rigger September 13, 2010 6:57 PM EDT: I am so tired of people who think that the average American is an idiot. What is so hard to understand about this issue? This group of people that we are talking about pay most of the taxes in this country already. And they are the ones that create the jobs. Raise their taxes, and watch the jobs go overseas, along with their money. This is nothing more than more redistribution of wealth. These same people didnt have a problem raising the deffecit by trillions of dollars on the new healthcare entitlements. Look at it this way, when the Republicans take back both houses, they will do away with the healthcare bill and lower the deffecit. While at the same time (if the Dems dont let them extend the tax cuts to the higher classes) they will pass a new tax cut bill for these people. And I dont see any tax bill being held hostage by the Republicans. That is a flat out LIE, but then again it has to be, his lips are moving.; Reply to this comment


by tsigili September 9, 2010 12:16 PM EDT: Nobody ever said that the GOP were good guys, either. They just handle monetary matters way better than the Dems.; Reply to this comment


by cleantheDCcesspool September 9, 2010 12:15 PM EDT: "With all the other budgetary pressures we have -- with all the Republicans' talk about wanting to shrink the deficit -- they would have us borrow $700 billion over the next 10 years...

Yep this was straight from the o's mouth. In his first 10 months he borrowed at least twice that amount from our children and grandchildren, while refusing to cut taxes, and now it is (once again) all Republicans doing the spending. WOW.; Reply to this comment


by californiadreaming September 9, 2010 5:32 AM EDT: CBS seems to be editing out all my comments!!!!; Reply to this comment


by rightbehind September 8, 2010 11:13 PM EDT: The wealthy want the money presses stopped now that their pockets are full.; Reply to this comment

by rightbehind September 8, 2010 11:08 PM EDT

You want US manufacturing back throw the trade barriers up and republicans out of office. Lock the doors behind the companies that moved manufacturing to third world countries. If they want to sell it here it has to be made here. That works for every nation. Stop the neocon republicans from feeding on ignorance, fear and desperation. Throw the trade barriers up!

Reply to this comment


by retm-w September 8, 2010 11:48 PM EDT: Right to bad Americans won't buy it because it will cost to much. Give them a choice between a chinese product for a $1 and the same product made in the U.S. for $1.50 and they'll take the chinese product 100% of the time.

by wfw3536 September 8, 2010 10:12 PM EDT

Obama just does not get it, here our economy is tanking and he wants to raise tax on the so called rich. Doesn't he understand that 40% of these folks run small businesses. How sad.

Reply to this comment


by 1renegade September 8, 2010 10:39 PM EDT: You are exactly correct!! My wife and I fall into that catagory. I don't mind paying 3 percent more won't hurt me at all. What I get ill about is those not paying anything or getting more back than they paid in. EIC needs to be abolished it's nothing more than another entitlement. If you work you should pay something if it's only a dollar or a million. Then we need to control federal spending, have quality not quantity on regulations, an efficent government not big government and maybe we can salvage the economy and head it back in the right direction.


by luadda22 September 9, 2010 10:15 AM EDT: nbethlehem, "what tax breaks for small business"?

Equipment write off? Section 179 allows you to do that now.

Capital gains tax break? Most small business do have capital gains.

No FICA on new unemployed employees for what? 3 months. Whoopee.

Just more "hate" and "envy" from the left. You would rather bring everyone down to your miserable level. If you can't have it (or don't have the ability to earn it), then no one else should have it either.

by RobAla September 8, 2010 9:28 PM EDT

President Obama is holding the future of the nation hostage by spending tomorrow's money on goodies today. He and the Democrats running Washington have given us a record breaking $1.47 trillion deficit, and the President wants to add another $50 billion. This is nuts!!! Stop it!!

Reply to this comment


by rightbehind September 8, 2010 10:59 PM EDT: Republican presidents are responsible for 8.2 of this nations 13 trillion dollar deficit.

by cleantheDCcesspool September 8, 2010 9:23 PM EDT

"With all the other budgetary pressures we have -- with all the Republicans' talk about wanting to shrink the deficit -- they would have us borrow $700 billion over the next 10 years ............

This from a president who has spent or borrowed twice that amount in his first 10 months in office. WOW. Someone speak with forked tongue.

Reply to this comment


by 1renegade September 8, 2010 10:32 PM EDT: But Obama would have us borrow $3 trillion dollars for his plan. Makes a lot of sense doesn't it??


by 1renegade September 9, 2010 12:16 PM EDT: But Obama would have us borrow $3 trillion dollars for his plan. Makes a lot of sense doesn't it??

by myth1958 September 8, 2010 8:19 PM EDT

I commend President Obama for having the courage to face off against the most powerful families in America. These folks create jobs - sure. But if anyone else has ever worked for a rich person, they don't create wealth for anybody but themselves. Fine. That's capitalism. And so are taxes, in the 21st Century. These are the same taxes they paid under Clinton, and they've had a break on rates all through the Bush years as the healthy Clinton economy was crippled. I say too bad if they pay what they should have all along. Maybe things wouldn't be so tight for the rest of us right now had they paid up earlier. Leave the tax breaks for the non-millionaires who constitute a super majority of blood, sweat and tears, at least.

Reply to this comment


by californiadreaming September 9, 2010 12:09 PM EDT: Well, then listen! The taxes start on anyone earning over $250K - that's a far cry from being a millionaire. And people earning that much have been paying a lot more than you think. You haven't a clue!