Obama Won’t Extend Bush-Era Tax Cuts for Rich

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.

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10 Responses to Obama Won’t Extend Bush-Era Tax Cuts for Rich

  1. Joe in Colorado says:

    This is a no-brainer. Tax cuts for the wealthy are less popular than syphilis. Let them expire and flood the Treasury with much needed cash to spend on various domestic programs that have gone unfunded. I saw Vico Daniel’s list of ideas on the previous post he says Obama needs to act on and they all make sense to me. I guess the question now for Democrats, is it a pound short to change the outcome of the midterms?

  2. feminazi says:

    Bill Clinton understood this too. When he increased the tax rates on wage earners making for the $200K a year, the US Treasury had additional monies and the US was on target to pay-off the national debt by 2010. I know this seems impossible now but it was only a short 15 years ago.

  3. Jolly Roger says:

    I TOLD you so. Next time listen to me, dammit🙂

  4. Estacada says:

    The notion that tax cuts for people earning more than $250,000 is somehow a net positive for the economy is one of the biggest lies perpetuated on the American people.

    If these tax cuts helped, then where are the jobs?

    Oh yeah. In China, Mexico and Vietnam.

  5. R.J. says:

    All those tax cuts did is make us lose jobs and make less money at the ones we were lucky to find in the past decade. The only thing that trickled down the past ten years was the p*ss those high tax earners took on the rest of us.

  6. Brigadoon says:

    I think it’s safe to say, whether you’re an O-bot or not that tax cuts for the uber wealthy do not stimulate job growth and the only thing that trickles down is a lower standard of living for the middle class. We learned this lesson when Reagan was president.

  7. Rachel says:

    It’s Obama 20 months to learn reaching out to the party opposite is political suicide. He’s a slow learner but maybe he’s started to grow up. Sorry babe, but not everyone loves you and you even you don’t have the charm to win over an energized Republican party ready to send Pelosi and Reid packing.

  8. Peter Nelson says:

    With the torrent of debate about the Bush Tax Cuts, no media commentator has touched upon the original rationale given by Bush for these cuts. When he first introduced the idea as he was running for president the first time, he said at the time — and this was echoed by his allied conservative politicians — that the reason behind the cuts was to spread the trillion surplus of the Clinton administration “to the people.” The tax cuts were then due to the surplus. Well, we no longer have a surplus obviously. Therefore Bush’s original justification for the cuts is no longer valid. No surplus today — so how can we justify cuts that were put there to take up the slack of the surplus? The tax cuts have then lost their underlying justification. No public or media figure today connects the dots on this issue. The original rationale of the cuts should be the strongest point supporting the position of letting them run out. With no surplus, we obviously can’t afford the trillion dollars they cost. Cut the cuts, not health care or aid to small businesses.

  9. Steel Toq says:

    I almost, almost feel sorry for Obama. He’s been led around like a dog on a leash by bully Rahm Emanuel whose tactics included playing it safe and abandoning his principles to appeal to the biggest audience possible.

    But here’s the problem for Obama. This approach only made him appear to stand for nothing and Americans want a leader to fix what ails the US, like housing, employment and immigration. Gays say it was Rahmbo who told Obama not to move on DADT until after the midterms.

    In any event, Obama’s values got shoved aside and now he’s paying the price will poll numbers that rival Bush at his worst. I don’t know if he can turn things around in time. It may be too late for him.

    Message to Democrats. Don’t trust Rahm Emanuel.

  10. Smooch says:

    When Bush was installed in the White House he had a $160 billion dollar surplus. He spent it in six months and the country started borrowing and borrowing and we’re still borrowing today. Mostly, to pay for the war in Afghanistan which is costing $2 billion a week. We can’t continue down this path or we won’t survive as a nation in short order.

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