News / USA

Obama, Republicans Clash Over Tax Proposal

President Barack Obama waves at Dobbins Elementary School in Poland, Ohio during his Betting On America campaign tour, July 6, 2012.President Barack Obama waves at Dobbins Elementary School in Poland, Ohio during his Betting On America campaign tour, July 6, 2012.
x
President Barack Obama waves at Dobbins Elementary School in Poland, Ohio during his Betting On America campaign tour, July 6, 2012.
President Barack Obama waves at Dobbins Elementary School in Poland, Ohio during his Betting On America campaign tour, July 6, 2012.
WHITE HOUSE — President Barack Obama on Monday called on Congress to approve a one year extension of Bush-era tax cuts for people making less than $250,000 per year, a proposal that has been rejected by congressional Republicans and likely Republican Party presidential nominee Mitt Romney.

Obama's challenge to Congress came as Republicans seek an extension of all cuts for middle and upper-income Americans made under Obama's predecessor George W. Bush.

As Obama campaigns for reelection, he is emphasizing what he says are the benefits of his policies and fairness for the middle class - contrasting his proposals with those of former Massachusetts Governor Mitt Romney.

The president seeks to portray Romney as the protector of the wealthy who would enact $5 trillion of new tax cuts in addition to the Bush-era reductions that have been the subject of partisan debate with Congress for the past three years.

Saying the tax issue reflects the political stalemate in Washington and basic differences in vision for the country, Obama said his proposal would help strengthen the middle class.

"I am not proposing anything radical here.  I just believe that anybody making over $250,000 a year should go back to the income tax rates we were paying under [former 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," Obama said.

In a compromise with congressional Republicans in 2010, Obama agreed to a two year extension of Bush-era tax cuts, but said he would not agree to another extension.

If Congress does not act before the end of this year, rates for all Americans will increase.  Economists warn of a potential double punch to the economy from this and automatic mandatory spending cuts beginning at the same time.

Republicans rejected Obama's proposal in advance.  House of Representatives Speaker John Boehner said Obama is "doubling down" on tax increases that would harm small businesses.  A Romney campaign statement accused Obama of responding to recent bad economic news with a "massive tax increase," saying the president "doesn't have a clue how to get America working again and help the middle class."

The exchanges over tax policy follow recent government economic reports, showing unemployment remaining at 8.2 percent with only 80,000 jobs created in the month of June.

President Obama is facing opposition from some in his own Democratic Party, who advocate extending tax rate reductions for everyone earning up to $1 million a year.

The exchanges on taxes come as Obama and the Romney campaign further shape their positions on the economy with about four months until the presidential election.

Public opinion surveys show a tight race nationally between President Obama and Mitt Romney.  Some surveys show the president leading in key battleground states such as Pennsylvania and Ohio.

Obama will visit the Midwestern state of Iowa on Tuesday to deliver remarks at the home of a middle class family that would face a substantial tax increase, if Congress does not to act by the end of the year.

You May Like

Israelis Quietly Expand Enclave in Palestinian District of Jerusalem

Estimated 500 settlers, armed or protected by paramilitary police, live in Silwan among 50,000 Palestinians More

Video US, Iran Face Similar Challenges in Syrian Fight Against IS

Both Washington, Tehran back fighters battling Islamic State militants in Iraq -- but in Syria they support opposing sides in country’s civil war More

China Boosts Efforts to Help Afghan, Regional Stability

Observers say China’s increased regional involvement are due to concerns that Afghan instability and the presence of anti-China militants in Pakistani border areas could fuel Xinjiang troubles More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
China Political Meeting Seeks to Improve Rule of Lawi
X
William Ide
October 20, 2014 10:23 AM
China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
Video

Video Latinas Converting to Islam for Identity, Structure

Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
Video

Video Nigeria Agrees to Cease-Fire With Boko Haram

Islamist militant group Boko Haram and the Nigerian government have agreed to a cease-fire. The Nigerian government issued an order Friday, telling all military chiefs "to comply with the cease-fire agreement in all theaters of operations. Why now and the significance of the agreement are questions on some people’s minds. VOA's Mariama Diallo reports.
Video

Video Kobani Fighting Sends 400,000 Refugees to Turkey

The offensive by Islamic State militants against the northern Syrian city of Kobani has caused hundreds of thousands of residents to flee to Turkey. They receive help from Turkish authorities and individuals, but say much more is needed. VOA’s Scott Bobb reports from the town of Suruc a few kilometers from the border.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.
Video

Video Syrian Defector Leaks Shocking Photos of Torture Victims

Shocking photographs purporting to show Syrian torture victims are on display at the U.S. Holocaust Memorial Museum in Washington. The museum says the graphic images are among thousands of photographs recently smuggled out of Syria by a military policeman-turned-defector. As VOA reporter Julie Taboh reports, the museum says the photos provide further evidence of atrocities committed by the government of Syrian President Bashar al-Assad against its own people.
Video

Video Drought-Stricken California Considers Upgrading Water System

A three-year drought in California is causing a water shortage that is being felt on farms and cities throughout the state. As VOA's Mike O’Sullivan reports, water experts, consumers and farmers say California needs to make changes to cope with an uncertain future.
Video

Video TechShop Puts High-tech Dreams Within Reach

Square, a business app and card reader, makes it possible to do credit card transactions through cell phones. But what made Square possible? VOA’s Adrianna Zhang and Enming Liu have the answer.

All About America

AppleAndroid