Obama to seek one-year extension for some of Bush tax cuts

[Eugene]

Source: Reuters

Obama to seek one-year extension for some of Bush tax cuts

WASHINGTON | Mon Jul 9, 2012 8:28am EDT

(Reuters) - President Barack Obama will call for a one-year extension of Bush-era tax cuts for families earning less than $250,000 a year, according to a White House official, seeking to spare the economy the impact of taxes going up on January 1.

Obama, a Democrat, will make the request in a 11:50 a.m. statement at the White House on Monday.

Republicans in Congress are unlikely to be swayed, as they have consistently argued that the Bush tax cuts should be extended for everyone, including higher earners.

Obama has pushed what he calls "tax fairness" in his campaign for re-election on November 6, repeatedly urging Congress to make the tax cuts permanent for families making less than $250,000 a year. His Republican challenger, Mitt Romney, has suggested Congress wait to act until January, when he hopes to take office.

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Read more: http://www.reuters.com/article/2012/07/09/us-usa-obama-taxes-idUSBRE86805220120709

[Buns_of_Fire]

1. Well, we know how far THAT'S going to go...

[Frustratedlady]

2. Romney simply will not commit to anything.

He'd have the US so screwed up in his first month, it would take years to recover.

Of course, his first day is going to be loaded down with repeals of Everything-Obama. I thought George was a puppet, but Mitt is even worse as the puppet masters haven't told him what he's going to do once he takes office.

The only good thing about all these contributions to his campaign is that it gets that stale money back into circulation.

[JustAnotherGen]

3. If the Republicans

Won't get rid of the concept that rich people should never pay taxes - then Obama needs to let them all sunset - and hammer home every single day that the Republicans care sooooo much about the rich they were willing to throw those earning less than 250K under the bus.

[geek_sabre]

4. Why one year? Why not permanent?

[Tom Rinaldo]

9. Bargaining Chip

I suspect Dems would accept raising the line to $500,000 per year income and making that a permanent cut in return for Republicans signing off on the rest of the Bush cuts expiring. Just a hunch. This way they can claim they were willing to compromise if Republicans go rejectionist, triggering off all the cuts expiring at the end of this year..

[IndyPragmatist123]

5. We need to eliminate these, but over 2 or 3 years

There is an economic argument against scraping these completely in 1 year. A 2-3 year phase out should have been written into these in the first place (well, they shouldn't have happened in the first place, but they did, so we have to deal with it). If you end these abruptly,you will see a mini-run on Wall Street on December 31st. It's hard to tell how much damage this would cause, but it would likely cause some pain to middle class people with pensions and other investments.

Lets extend half of the cuts next year and then completely eliminate them by the next. This is the only way we can rid ourselves of the Bush Tax Cut burden without a mini-run on Wall Street.

[Cali_Democrat]

6. And if the Republicans don't allow this....

I say let 'em all expire. Don't sign anything and they will all expire automatically.

[IndyPragmatist123]

7. They should all expire

Temporary tax cuts are rarely temporary (as evidenced here). They are difficult to get rid of. These tax cuts should be eliminated for everyone: rich, poor, middle class...everyone. If you think the tax burden is too much (which it really isn't), then look to change the tax code instead of wasteful temporary cuts.

[RC]

8. The cut off needs to be $100,000, not $250,000 for rescinding bu$h's tax give-a-way.

Persons per household definition and source info Persons per household, 2006-2010 2.59
definition and source info Per capita money income in past 12 months (2010 dollars) 2006-2010 $27,334
definition and source info Median household income 2006-2010 $51,914
Persons below poverty level, percent definition and source info Persons below poverty level, percent, 2006-2010 13.8%
http://quickfacts.census.gov/qfd/states/00000.html

How does this support $250,000 as the cut off? It doesn't. More proof our Federal Government is out of touch.

Edited to add:
This should help too.
http://en.wikipedia.org/wiki/List_of_U.S._states_by_income