President Obama used his weekly address to the nation on Friday to lobby for the passage of a controversial bipartisan middle class tax cut and jobless benefits agreement. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 would extend George W. Bush-era income tax cuts of 2001/2003.
Obama also plans to compromise with Republican members of Congress on giving tax cuts to higher income households. However, he does not side with Republicans in favoring permanent tax cuts for the wealthiest taxpayers and their estates, which he believes would add to our deficit without boosting the economy.
The Senate will vote on the measure on Monday, which represents a compromise between the administration and House Republicans. Some Democrats in the House have revolted against the compromise.
In his speech, Obama urged Congress and the American public to act in favor of the compromise, adding that if Congress does not act (in any way), taxes will go up for just about everyone in the country. He specifically cited a projected figure of $3,000 of additional taxes per family in addition tax costs if the tax cut compromise is not supported.
”That’s unacceptable to me. Not when we know that it’s the middle class that was hit the hardest by the recession,“ said Obama in his speech, which was posted on the White House website. ”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. Economists tell us that this tax hike on working families could actually cost us well over a million jobs.”
Other advocates for the plan hit the airwaves over the weekend. During CNN’s Sunday morning broadcast of State of the Union, Senior Advisor to the President David Axelrod framed the package as a protective measure for many Americans.
“At the end of the day no one wants to see taxes go up on 150 million Americans on January first,” said Axelrod. “No one wants to see 2 million people lose their unemployment insurance.”
When asked about the “ferocity of the blowback over the measure,” Axelrod said that without action, the economy will be “devastating.”
The primary aid to the middle class in the package includes a new payroll tax cut which plans to give back about $1,000.00 to the average American family. Combined with the added Child Tax Credit, the average American family stands to gain about $2,300.00.
Obama has acknowledged that even among the Democratic Party, there are opponents to the compromise agreement.
”I recognize that many of my friends in my own party are uncomfortable with some of what’s in this agreement, in particular the temporary tax cuts for the wealthy,“ said Obama in his address on Friday. ”And I share their concerns. It’s clear that over the long run, if we’re serious about balancing the budget, we cannot afford to continue these tax breaks for the wealthiest taxpayers--especially when we know that cutting the deficit is going to demand sacrifice from everyone.”
Obama has been calling in help in the form of former presidential prowess. Last Thursday, he was joined by former President Bill Clinton in a press briefing at the White House, where they urged Congress to pass the agreement. President Clinton made several compromises during his presidency and was invited to help make the current tax compromise before the new year.
Additional reporting by Genevieve Long Belmaker.
Obama also plans to compromise with Republican members of Congress on giving tax cuts to higher income households. However, he does not side with Republicans in favoring permanent tax cuts for the wealthiest taxpayers and their estates, which he believes would add to our deficit without boosting the economy.
The Senate will vote on the measure on Monday, which represents a compromise between the administration and House Republicans. Some Democrats in the House have revolted against the compromise.
In his speech, Obama urged Congress and the American public to act in favor of the compromise, adding that if Congress does not act (in any way), taxes will go up for just about everyone in the country. He specifically cited a projected figure of $3,000 of additional taxes per family in addition tax costs if the tax cut compromise is not supported.
”That’s unacceptable to me. Not when we know that it’s the middle class that was hit the hardest by the recession,“ said Obama in his speech, which was posted on the White House website. ”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. Economists tell us that this tax hike on working families could actually cost us well over a million jobs.”
Other advocates for the plan hit the airwaves over the weekend. During CNN’s Sunday morning broadcast of State of the Union, Senior Advisor to the President David Axelrod framed the package as a protective measure for many Americans.
“At the end of the day no one wants to see taxes go up on 150 million Americans on January first,” said Axelrod. “No one wants to see 2 million people lose their unemployment insurance.”
When asked about the “ferocity of the blowback over the measure,” Axelrod said that without action, the economy will be “devastating.”
The primary aid to the middle class in the package includes a new payroll tax cut which plans to give back about $1,000.00 to the average American family. Combined with the added Child Tax Credit, the average American family stands to gain about $2,300.00.
Obama has acknowledged that even among the Democratic Party, there are opponents to the compromise agreement.
”I recognize that many of my friends in my own party are uncomfortable with some of what’s in this agreement, in particular the temporary tax cuts for the wealthy,“ said Obama in his address on Friday. ”And I share their concerns. It’s clear that over the long run, if we’re serious about balancing the budget, we cannot afford to continue these tax breaks for the wealthiest taxpayers--especially when we know that cutting the deficit is going to demand sacrifice from everyone.”
Obama has been calling in help in the form of former presidential prowess. Last Thursday, he was joined by former President Bill Clinton in a press briefing at the White House, where they urged Congress to pass the agreement. President Clinton made several compromises during his presidency and was invited to help make the current tax compromise before the new year.
Additional reporting by Genevieve Long Belmaker.
