Obama: I’ll keep the Bush tax cuts, but only if you make less than $250K

Obama's re-election is uncertain, while Romney's favorability is rising.

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.

The tax cuts enacted by Obama’s Republican predecessor, George W. Bush, will expire on January 1 without congressional action, part of a so-called fiscal cliff that could hit the U.S. economy alongside deep automatic spending cuts.

Analysts warn the impact of rising taxes and lower federal spending could tip the economy back into recession.

Robert Gibbs, a senior adviser to Obama’s campaign, defended the proposed extension on Monday as a way to help boost middle-income Americans and propel the U.S. economy.

“We have to continue to grow our economy – we need to grow it from the middle class out,” he told NBC’s “Today” show.

“Millionaires and billionaires – they don’t need a tax cut. They’re not struggling in this economy. They’ve done well even as the middle class has shrunk,” he added.

The president’s proposal comes as lawmakers return from a weeklong recess.

The expiring tax cuts set up what could be another deeply partisan fight in Congress, where Republicans hold the U.S. House of Representatives and Obama’s fellow Democrats narrowly hold the U.S. Senate. It is not clear whether any legislation would pass before the November election or after it.

Representative Tom Price, a member of the House Republican leadership, told “Fox News Sunday” the House would pass legislation in July to preserve the Bush tax cuts for another year, a move he said Romney supports.

Representative Xavier Becerra, a member of the House Democratic leadership, said Democrats would not support any measure that did not address the nation’s fiscal challenges on a long-term basis.

“Those are bills to nowhere,” Becerra said on “Fox News Sunday,” referring to the House Republicans’ legislation to extend the Bush tax cuts.



News
Entertainment
Sports
Lifestyle
National

At 91, Marvel creator Stan Lee continues to…

By Piya Sinha-RoyLOS ANGELES (Reuters) - Marvel Entertainment's chief emeritus Stan Lee may be in his ninth decade, but it hasn't stopped him from adding…

National

Islamic State says beheads U.S. journalist, holds another

Islamic State insurgents released a video purportedly showing the beheading of U.S. journalist James Foley, who had gone missing in Syria nearly two years ago.

Local

VIDEO: NYPD seeks shooter in East New York…

Cops are on the lookout for an unknown shooter who aimed and missed hitting a man on a bicycle, instead nearly striking a nearby officer in East New York.

Local

NYS state forces thrift shops comply with ban…

Nine New York City thrift shops were reprimanded by the state attorney general for selling children's clothes with drawstrings around the neck and waist.

Television

'Pretty Little Liars' recap: Season 5, Episode 11,…

Caleb's not a ghost. Spencer might still be an attempted murderer. And Hanna's going to die next week. In other words, we actually got some…

Movies

At 91, Marvel creator Stan Lee continues to…

Marvel Entertainment's Stan Lee is adding outposts to his creative empire to interest a new generation of children in super heroes of all shapes and sizes.

Television

Mira Sorvino explores immortality on 'Intruders'

Mira Sorvino's new show "Intruders" centers around a secret society that achieves immortality by taking over the bodies of other people.

Television

5 things you need to know about new…

"Doctor Who" returns Saturday with a new star, Peter Capaldi. Here's some things to know about him (mainly his turn as sweary spin doctor Malcolm Tucker).

MLB

Shane Greene travels unlikely road to Yankees stardom

Shane Greene was throwing a bullpen session on a quiet field at Daytona Beach Community College one day when the ball started moving.

NFL

2014 Fantasy Football: Rankings, list of top NFL…

2014 Fantasy Football: Rankings, list of top NFL tight ends (TE)

MLB

MLB Power Rankings: Angels supplant A's, Nationals climb

MLB Power Rankings: Angels supplant A's, Nationals climb

NFL

David Wilson returns to triple jump, sets sights…

Giants fans know David Wilson can jump. They are just more used to seeing him go for backflips, not distance.

Style

11 timeless gifts for registries or just because

Gifts to prove you're a style maven once and for all.

Parenting

How everyday moments can inspire kids' creativity

"The Artist's Way for Parents" author Julia Cameron gives advice on how parents and children can be creative together.

Tech

How to stay safe online

Stop worrying about keeping your online passwords safe, and start worrying about keeping your username a secret. Actually, worry about both. According to Shaun Murphy…

Tech

OpenTable now lets you pay your bill via…

The restaurant app OpenTable added the ability to pay your bill (and tip) with your phone, thus cutting back on a few dining annoyances.