In Deficit Plan, Taxes Must Rise, President Warns (You Betcha!)

Yesterday we were cheering “Thank you!” Way to go President Obama. Several of the GOP congress are working very hard for their rich contributors’ agenda – we need the Dems, our President and the reasonable/moderate Republicans to be working just as hard for us.


WASHINGTON — President Obama pressured Republicans on Wednesday to accept higher taxes as part of any plan to pare down the federal deficit, bluntly telling lawmakers that they “need to do their job” and strike a deal before the United States risks defaulting on its debt.

Declaring that an agreement is not possible without painful steps on both sides, Mr. Obama said that his party had already accepted the need for substantial spending cuts in programs it had long championed, and that Republicans must agree to end tax breaks for oil and gas companies, hedge funds and other corporate interests.

In a 67-minute news conference, Mr. Obama cast the budget battle as a tug of war between the interests of the rich — like owners of corporate jets, who he said get generous tax breaks — and those of the middle class, the elderly and children.

Directly challenging Republican leaders, Mr. Obama said, “Everybody else has been willing to move off their maximalist position — they need to do the same.”

At the same time, Mr. Obama, under assault frfom Republicans on the campaign trail for an unemployment rate that remains above 9 percent, asked voters to understand that the economic recovery would take time but said that Washington, even in its current financial straits, could still do more to help. He expressed support for extending a reduction in payroll taxes for an extra year, providing loans for road and bridge-building and approving trade pacts that could help spur exports.

While the president expressed hope for a budget deal before the government’s borrowing authority expires in early August, he scolded Republican lawmakers for putting off hard decisions until the 11th hour, saying that his daughters did not procrastinate that way with their schoolwork.

“Malia and Sasha generally finish their homework a day ahead of time,” the president said, in a tone of rising exasperation. “They don’t wait until the night before. They’re not pulling all-nighters.”

 

The House speaker, John A. Boehner, flatly rejected Mr. Obama’s call for new tax revenues, saying the “president’s remarks ignore legislative and economic reality.”

In a toughly worded statement, Mr. Boehner said the House would vote to raise the debt limit, as the White House has demanded, only if the administration agreed to a deal that contained deep spending cuts and no tax increases.

“The American people know tax hikes destroy jobs,” Mr. Boehner said. “They also know Washington has been on a spending binge for many years, and they will only tolerate a debt-limit increase if we stop it.”

Mr. Obama’s news conference, his first extended exchange with reporters since March, also touched on Libya, on which he offered a brisk defense of his decision not to seek Congressional authorization for the NATO-led air campaign, and on same-sex marriage, which he stopped just short of endorsing as a legal right.

But the president’s combative remarks on the budget commanded most of the attention, signaling that he had fully entered the fray. On Monday, he took over stalled talks led by Vice President Joseph R. Biden Jr., meeting with Senate Republicans and Democrats, and on Wednesday he met with the Democrats.

So far, the president’s involvement seems mainly to have dramatized the gulf between the White House and the Republicans on fiscal priorities.

By all accounts, the round of negotiations steered by Mr. Biden made significant progress in identifying spending cuts and revenue-generating items. But with the Aug. 2 deadline looming for the expiration of the government’s borrowing authority, the partisan maneuvering on both sides has increased.

Senate Republicans have talked about a short-term increase in the debt ceiling, betting that the White House will accept spending cuts, with no tax increases, rather than face two votes on the issue before the 2012 election. Mr. Obama is taking aim at tax policies that benefit the rich as a way to pressure Republicans. Asserting that chief executives and hedge fund managers are paying the lowest tax rates since the 1950s, before he was born, the president, casting the issue in populist terms that some conservatives said veered into class warfare, said they could afford to pay more.

“You’ll still be able to ride on your corporate jet,” Mr. Obama said. “You’ll just have to pay a little more.”

Read the full story here.

 

2012-08-24T02:25:52+00:00

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