Obama Says Tax Cut Compromise `Good Deal' for Americans, Will Boost Growth
U.S. President Barack Obama urged Congress to approve an agreement to temporarily extend tax cuts due to expire at the end of the year to ensure the economic recovery stays on track.
In his weekly address on the radio and the Internet, Obama said that failing to extend the tax cuts could cost the nation “well over a million jobs” and families around the nation would see their taxes increase on Jan. 1.
“If Congress doesn’t act, tax rates will automatically go up for just about everyone in our country,” he said. “That’s unacceptable to me.”
Congressional Democrats are registering objections to keeping tax cuts for the wealthiest Americans and to an estate- tax provision that would set the top rate at 35 percent after a $5 million tax-free allowance per individual.
The measure also includes a 13-month extension of unemployment aid for the long-term jobless, a cut of 2 percentage points in payroll taxes for 2011 and tax breaks for small businesses that were part of Obama’s economic package.
Obama said the proposal is “by no means perfect” because it includes provisions that both Republicans and Democrats dislike. Obama said he opposes an extension of tax cuts for the wealthy.
“But this is a good deal for the American people,” he said. “The vast majority of the tax cuts in this plan will help the middle class.”
Obama said that Congress will have to revisit the issue of taxes on the wealthy when it takes steps to tackle the nation’s budget deficit, but he had to compromise on the issue now to make sure taxes didn’t rise for middle-income taxpayers.
“I will not allow middle-class families to be treated like pawns on a chessboard,” he said.
Republican Address
In the Republican address, Representative-elect Kristi Noem of South Dakota said Congress needs to do more than just approve the tax compromise to encourage economic growth.
Noem said that extending tax cuts that were due to expire at the end of the year is “a good first step,” and next lawmakers should focus on cutting government spending and repealing Obama’s health-care law.
Those two steps, Noem said, would help “eliminate the job- killing uncertainty hanging over our employers and entrepreneurs.”
To contact the reporter on this story: Nicholas Johnston in Washington at njohnston3@bloomberg.net
To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net
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