When President Obama announced his proposed tax compromise plan for next week, criticism immediately started coming in from both sides of the aisle. Some Democrats were not happy with the extension of the tax cuts for the wealthiest Americans and some Republicans were concerned with the price tag of the compromise package.
Obama immediately went into defensive mode explaining that this compromise was needed because without it, middle class families would get slammed come January 1, 2011. Former President Clinton even jumped into the mix expressing his support for the compromise.
Obama then revisited the issue during the weekly address:
“Right now, there’s a big debate taking place in Washington that will affect how much you pay in taxes next year. If Congress doesn’t act, tax rates will automatically go up for just about everyone in our country. Typical middle class families would end up paying an extra $3,000.
That’s unacceptable to me. Not when we know that it’s the middle class that was hit the hardest by the recession. And not when we know that taking this money out of the pockets of working people is exactly the wrong thing to do to get our economy growing faster. Economists tell us that this tax hike on working families could actually cost us well over a million jobs.” Source: The White House
It will be interesting to see what happens in Congress this week.
Photo: The U.S. Army/Flickr