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

Photogallery Americans Celebrate Thanksgiving With Feasts, Festivities

Holiday traditions include turkey dinners, 'turkey trots,' American-style football and New York parade with giant balloons More

Video For Obama, Ferguson Violence is a Personal Issue

With two years left in term, analysts say, president has less to lose by taking conversation on race further More

Video Italian Espresso Expands Into Space

When Italian astronaut Samantha Cristoforetti headed for the ISS, her countrymen worried how she would survive six months drinking only instant coffee More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
To Make A Living, Nairobi Street Vendors Face Legal Hurdles, Physical Violencei
X
Lenny Ruvaga
November 27, 2014 7:05 PM
The Nairobi City Council has been accused of brutality in dealing with hawkers in the Central Business District - in order to stop them from illegally selling their wares on the streets. Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video To Make A Living, Nairobi Street Vendors Face Legal Hurdles, Physical Violence

The Nairobi City Council has been accused of brutality in dealing with hawkers in the Central Business District - in order to stop them from illegally selling their wares on the streets. Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video For Obama, Ferguson Violence is a Personal Issue

Throughout the crisis in Ferguson, Missouri, President Barack Obama has urged calm, restraint and respect for the rule of law. But the events in Ferguson have prompted him to call — more openly than he has before — for profound changes to end the racism and distrust that he believes still exists between whites and blacks in the United States. VOA White House correspondent Luis Ramirez reports.
Video

Video Online Magazine Gets Kids Discussing Big Questions

Teen culture in America is often criticized for being superficial. But an online magazine has been encouraging some teenagers to explore deeper issues, and rewarding their efforts. VOA religion reporter Jerome Socolovsky went to this year’s Kidspirit awards ceremony in New York.
Video

Video US Community Kicks Off Thanksgiving With Parade

Thursday is Thanksgiving in the United States, a holiday whose roots go back to the country's earliest days as a British colony. One way Americans celebrate the occasion is with parades. Anush Avetisyan takes us to one such event on the day before Thanksgiving near Washington, where a community's diversity is on display. Joy Wagner narrates
Video

Video Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Change

Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Mali Attempts to Shut Down Ebola Transmission Chain

Senegal and Nigeria were able to stop small Ebola outbreaks by closely monitoring those who had contact with the sick person and quickly isolating anyone with symptoms. Mali is now scrambling to do the same. VOA’s Anne Look reports from Mali on what the country is doing to shut down the chain of transmission.
Video

Video Ukraine Marks Anniversary of Deadly 1930s Famine

During a commemoration for millions who died of starvation in Ukraine in the early 1930s, President Petro Poroshenko lashed out at Soviet-era totalitarianism for causing the deaths and accused today’s Russian-backed rebels in the east of using similar tactics. VOA’s Daniel Shearf reports from Kyiv.
Video

Video Hong Kong Protests at a Crossroads

New public opinion polls in Hong Kong indicate declining support for pro-democracy demonstrations after weeks of street protests. VOA’s Bill Ide in Guangzhou and Pros Laput in Hong Kong spoke with protesters and observers about whether demonstrators have been too aggressive in pushing for change.
Video

Video US Immigration Relief Imminent for Mixed-Status Families

Tens of thousands of undocumented immigrants in the Washington, D.C., area may benefit from a controversial presidential order announced this week. It's not a path to citizenship, as some activists hoped. But it will allow more immigrants who arrived as children or who have citizen children, to avoid deportation and work legally. VOA's Victoria Macchi talks with one young man who benefited from an earlier presidential order, and whose parents may now benefit after years of living in fear.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.
Video

Video Tensions Build on Korean Peninsula Amid Military Drills

It has been another tense week on the Korean peninsula as Pyongyang threatened to again test nuclear weapons while the U.S. and South Korean forces held joint military exercises in a show of force. VOA’s Brian Padden reports from the Kunsan Air Base in South Korea.
Video

Video Mama Sarah Obama Honored at UN Women’s Entrepreneurship Day

President Barack Obama's step-grandmother is in the United States to raise money to build a $12 million school and hospital center in Kogelo, Kenya, the birthplace of the president's father, Barack Obama, Sr. She was honored for her decades of work to aid poor Kenyans at a Women's Entrepreneurship Day at the United Nations.
Video

Video Ebola Economic Toll Stirs W. Africa Food Security Concerns

The World Bank said Wednesday that it expects the economic impact of the Ebola outbreak on the sub-Saharan economy to cost somewhere betweenf $3 billion to $4 billion - well below a previously-outlined worst-case scenario of $32 billion. Some economists, however, paint a gloomier picture - warning that the disruption to regional markets and trading is considerable. Henry Ridgwell reports from London.
Video

Video Chaos, Abuse Defy Solution in Libya

The political and security crisis in Libya is deepening, with competing governments and, according to Amnesty International, widespread human rights violations committed with impunity. VOA’s Al Pessin reports from London.
Video

Video US Hosts Record 866,000 Foreign Students

Close to 900,000 international students are studying at American universities and colleges, more than ever before. About half of them come from Asia, mostly China. The United States hosts more foreign students than any other country in the world, and its foreign student population is steadily growing. Zlatica Hoke reports.

All About America

AppleAndroid