Post date: Jul 10, 2012 8:47:22 AM
WASHINGTON D.C. UNITED STATES (JULY 9, 2012) (RESTRICTED POOL) - U.S. President Barack Obama called on Monday (July 9) for a one-year extension of Bush-era tax cuts for families earning less than $250,000 a year, seeking to put Republicans on the defensive and reinforce his campaign mantra of being a middle-class champion.
U.S. President Barack Obama says most Bush-era tax cuts should be extended, but calls for tax cuts benefiting wealthier Americans to expire.
Obama's proposal is unlikely to sway his opponents in Congress, who have argued consistently that the Bush tax cuts should be extended for everyone, including higher earners.
"Let's not hold the vast majority of Americans and our entire economy hostage while we debate the merits of another tax cut for the wealthy," Obama said at the White House, standing in front of a riser filled with people who he said would be hurt if their tax cuts were not extended.
Republicans charge that allowing taxes to rise for wealthier Americans would hurt small business owners who are helping to create jobs in a tough economy, but Obama tried to neutralize that argument by saying 97 percent of all U.S. small business owners would fall under the $250,000-a-year income threshold.
Obama said the discussion about extending the tax cuts for wealthier Americans should be a separate debate.
"We can have that debate, but let's not hold up working on the thing that we already agree on," Obama said.
The tax cuts enacted by Republican President George W. Bush, Obama's predecessor, will expire on January 1 without congressional action, part of a so-called fiscal cliff that could hit the U.S. economy alongside deep automatic spending cuts.
Romney has suggested Congress wait to act on the issue until January, when he hopes to take office.