Congressional GOP: Obama's tax cut idea just politics

Capitol dome Capitol building washington congress senate house taxes tax cut

/ AP

(CBS News) Congressional Republicans say President Obama's call for eliminating the Bush-era tax cuts for American families making $250,000 or more is old news - and that he is simply trying to change the subject from three months worth of disappointing jobs reports.

"Today's proposal is clearly based on a political calculus, not an economic one," asserted Senate Minority Leader Mitch McConnell, R-Ky., in a written statement. "No one should see an income tax hike next year--not families, not small businesses and other job creators."

In Monday's address from the East Room at the White House, the President argued Congress should provide middle class families with more economic certainty by locking in their tax rates for next year now, rather than waiting until the end of the year when the reduced rates first passed by President George W. Bush in 2001 are set to expire.

However, he said, it is time for the top 2% of American earners to pay more. "I just believe that anybody making over $250,000 a year should go back to the income tax rates we were paying under (President) Bill Clinton -- back when our economy created nearly 23 million new jobs, the biggest budget surplus in history, and plenty of millionaires to boot," he said.

Republicans accused the president of trying to inflict a tax hike on small businesses that are already struggling in a sluggish economy. "President Obama's push to raise taxes on those earning more than $250,000 - including 940,000 business owners - could not come at a worse time," argued Senate Minority Whip Jon Kyl, R-Ariz.

Mr. Obama pointed out that 97 percent of small businesses would not be affected if the Bush-era tax cuts lapsed for those making more than $250,000 a year. "I'm not proposing anything radical here," he argued.

Congressional Democrats have been pushing for the same $250,000 dividing line for years, but in recent months they have retreated to a new position they hoped would get more traction with Republicans: an income cutoff of $1 million. "The $250,000 never made it," House Minority Leader Nancy Pelosi admitted in a press conference in May. "If we can get the million dollar and above people to pay their fair share, we get a lot of money... eighty one percent of the benefits of the Bush tax cuts go to the people making over a million dollars a year."

Republicans argued today's announcement puts Mr. Obama out of step with Democrats in Congress, some of whom have argued that no taxes should be raised when the economy is so fragile.

But Senate Majority Leader Harry Reid, D-Nev., signaled his support, saying he would discuss "next steps" with Democrats in coming days.

"I agree with President Obama that we should extend tax cuts for all American families up to the first $250,000 of income immediately," he said in a statement, adding "Republicans should stop holding these middle-class tax cuts hostage to extract more reckless giveaways for millionaires and billionaires."

Despite their insistence on creating certainty for taxpayers, both sides have stopped advocating that the tax cuts be made permanent or even long term. House Republican leaders have scheduled a vote later this month on renewing the current income tax rates for all earners for just one year, to give Congress time to focus on overhauling and simplifying the entire tax code.

[olyboy]

From the man who took our freedom with the Obamacare insurance "penalty" now comes the SUCCESS PENALTY! For those who understand math, a disaster -- for those that don't a windfall.

[lg144]

Ever notice republicans NEVER run budget deficits on spending to help average Americans? They ALWAYS waste taxpayer dollars on things to empty the treasury without helping people. This is strategic by republicans. They do this and then cry the country is broke and we can't afford that! They do this because they NEVER want average americans to thing government can help and enhance them. They ALWAYS use government to help corporations, big oil and the wealthy, not average Americans. This is why republicans ALWAYS speak negatively of government. Wake up people!

This is why they have been on a 30 plus years crusade against governemnt. To convince average Americans that government is no good and cannot do anything positive for them. They use the term Limited Government" what they really mean is republican we limit governments ability to help and enhance the lives of average Americans while enhusiastically supporting corporations, big oil and the super rich.

Can any republican supporter state any republican bill, policy or current political stance that favors struggling Americans over corporations, big oil and the wealthy? Of course this looong list will justify republicans deserving the votes of struggling Americans over President Obama and Democrats, right? Republicans are using playing on the racism against President Obama of some voters to get them to vote republicans. Which ironically is the very party that has blocked and stopped ever piece of legislation from President Obama that would help average Americans. This election voters will decide whether to reward the republican party which ahs brazenly worked to keep them jobless or reward President Obama for constantly fighting against them on behaf of average Americans.

Wake Up Voters!

[sjc_1]

Republicans borrow and waste for tax cuts and war. This does not help productivity nor does it create prosperity for the many. Do the most good for the most people, reward those that are productive, then then country will do well. Reward the wealthy that take and are not productive, then we will collapse yet again.

[sjc_1]

Republicans borrow and waste for tax cuts and war. This does not help productivity nor does it create prosperity for the many. Do the most good for the most people, reward those that are productive, then the country will do well. Reward the wealthy that take and are not productive, then we will collapse yet again.

[Maerzie]

What has the GOP EVER done that has not been purely "politics"?? I can't think of a single thing. Obstructing everything Obama has TRIED to do to improve life for millions of middle class and poor Americans, is not purely politics?? Spreading all sorts of defamatory lies about President Obama, in order to accomplish their admittedly sole mission to make him a one term president, isn't pure politics?? Does the GOP think all the Democrats are blind, deaf, and stupid?? Non-thinkers vote Republican!

[nearl451]

Politics? Sure. But at least it's consistent.

I am trying to figue out how the GOP is going to resolve the budget debacle. Just by cutting social and safety net program spending?

When would it be appropriate to tax more? When starting a new war perhaps? Just when the economy is better?

This is worse than Greece. Can't cut any significant spending and unwilling to tax anyone more to pay down debt.

I STILL say, since the SCOTUS ruled that just about any tax is Constitutional, that surperPAC spending oughttobetaxed at > 50%. They should have to pay for excessive free speech.

[Maerzie]

Do you suppose some of the billions of dollars of taxes that the wealthy are going to have to chip in to pay on their bills now, for a change, just MIGHT help to pay down SOME of Bush's credit card bills??

[lg144]

Americans must view EVERYTHING republicans do by keeping in mind what their true ultimate goals are. Which are to eliminate all of the social safety nets, Most noticeably Social Security, Medicare and Medicaid. They keep destroying the economy while blaming President Obama and the Democrats to win the White House and congress in 2012.

The history of their behavior proves they cannot be trusted to work to benefit ordinary Americans. It also proves they place political power over the well being of Americans and the country. Their behavior proves they have more allegiance to Grover Norquist and their party over our constitution and country.

Any party that does that cannot be rewarded for doing so.Therefore, they are undeserving of votes and support from ordinary/struggling Americans.

[sjc_1]

The GOP calls that the "welfare state", you pay into Social Security and Medicare all your life, then they take it and leave you twisting in the wind. The corporate looters have been doing that for decades, they want to take it to a national level and ruin millions of lives.

[hhandyman]

The Republican congress is just trying to protect their job from the 1% of 1% wealthy that would turn off the election support donations and let em hang for the lack of care they feel they'd receive for all the cash they donate directly or through pack groups that the wealthy are not identified so you don't know if someone supports a candidate or not or if hes supporting both sides of a candidacy to keep any person that is elected in his pocket when control over some policy he likes or fears is supported or dropped at the whim of the contributor.. Check records of any of the good ol' boys in leadership Minority or Majority leader and each Committee chairman see how he votes on the bills vs what the moneyed few want to happen
when the goals intersect you have probabilistic cause to believe puppet strings were pulled on the marionettes of Congress are playing their part to mold the legislation to favor the puppet masters.

[fiddlestickawshucks]

The GOP has a heart as big as a gnats ass.!!

Their primary objectives since the day Obama entered the office of the President has been to defeat him at every turn and destroy as much of the midde class as possible.

I am no fan of Obama.

He has done more harm to the US and its people than any President I can remember.

I can't think of one thing he has done that I approve of.

On the other and, I can't think of anything the GOP has done that I approve of either.

They suffer from an extreme case of tunnel vision.

Their inabality to come to any decisions for the last 3 1/2 years has done as much damage to the country as Obama.

Lucky for Congress they don"t get paid what they are worth.!!!

They have automatic salary increases, elite health care and pension plans and more perks than Starbucks.!!

I can't wait for November to get here.!

[tafhdyd]

So with that said, who are you going to vote for?

[Henri_Rochard]

You can call Barack Obama a lot of things, but 'dumb' ain't one of 'em.

The man excels in his permanent re-election campaign. As bad as the current economy is, I'd bet he gets re-elected. And I don't like the guy.

[Jon_Smiths]

Want this to pass?

Get rid of the republicans who's only response is no.

That would be all of them.

The only rational members of the GOP are already resigning in disgust.

[magicbymark]

That's the plan. Spread the word. Elect Democrats, get laws passed. The party of NO must go.

[retmw2]

smokey

Professional class, sounds like the same thing you accuse Obama of Class Warfare.

[Jahzera]

Mitch McConnel is full of political hot air.

To now attempt to claim "Today's proposal is clearly based on a political calculus, not an economic one," is nonsense.

Obama has been after this very thing from the onset. He's always promoted keeping the Bush era tax breaks for those earning under $250k per annum in place. It's extending the one for those making over that amount he has steadfastly fought. The reason is the intent of their tax break was to generate more jobs for Americans. And it didn't. In fact, the reverse took place.
So why continue to reward them with this break? Its not pennies from heaven, it came with strings. A responsibility to invest those savings into jobs right here in America. For Americans.
Small business owners with incomes under $250k per annum have been the ones who are generating the most jobs over the past several years. Reward them with an incentive to continue.

America was in much better shape during the 50's and 60's when tax rates were fair across the board. Even if they were higher. Now we're starving our country of the income it needs to function successfully and it shows.