Wednesday, September 8, 2010
Fasten your seat belts because President Obama finally gets something right!
The New York Times reports in a speech scheduled to be delivered in Cleveland on Wednesday, President Obama will rule out any compromise that would extend the Bush-era tax cuts for the wealthy beyond this year, adding a much needed populist twist to an election-season economic package that is otherwise designed to entice support from big businesses and their Republican allies.
Mr. Obama’s opposition to allowing the tax cuts to remain in place for even another year or two would be the signal many Congressional Democrats have been awaiting as they prepare for a showdown with Republicans on the issue and ends speculation that the White House might be open to an extension
However, it is not clear Mr. Obama can prevail given his own diminished popularity, the tepid nature of the economic recovery and the divisions within his party. But by proposing to extend the rates for the 98 percent of households with income below $250,000 for couples and $200,000 for individuals, insisting that Federal income tax rates in 2011 go back to their 2001 levels for income above those cutoffs, he intends to cast the issue as a choice between supporting the middle class or giving breaks to the wealthy.