Tax issues are on the minds of Americans, and today President Obama called for lower tax rates for American making less than $250,000 a year, according to USA Today.
In a White House ceremony, Obama said lower tax rates should end for Americans making more than $250,000 a year, citing the government's need to reduce the federal debt and invest in items such as education and infrastructure.
"The money we're spending on these tax cuts for the wealthy is a major driver of our deficit," Obama said, adding that they are also the "least likely to promote growth."
If the Bush tax cuts expire at the end of the year, the middle class face higher tax bills up to $2,200 annually.
Republicans in the House of Representatives say ending the Bush tax cuts will hurt job creators as they seek to prescribe to trickle-down economics as the cure all for economic stresses. The House plans to vote this week on a permanent extension of the cuts; however, the Senate is not expected to do the same.
In a CNN report on the opinion of leading economists, Russell Price senior economist with Ameriprise Financial Services, is one of those who agrees with the Obama administration proposal, saying it balances the need to deal with deficits while at the same time keeping most of the stimulus in place.
"We do need more revenue into the government, but you've got to try to do that with the least economic harm," he said. "There will be a very modest negative impact (of raising top tax rates) but it's not as significant as some people would lead us to believe."
The partial holiday on payroll tax which is due to expire had little support from economists.
While the extending the payroll tax has relatively limited support, economists were far more supportive of the idea of a broad-based tax reform, which would lower most tax rates but eliminate many deductions and breaks now in the tax code.
Three of the 15 economists who ranked various choices picked tax reform as their top choice to help the economy, and another four did not rank the full range of options but tapped tax reform as best option. five of the economists wanted to extend the tax cuts for all taxpayers, while four endorsed the Obama administration's call to extend the cuts for all but those in the upper income tax bracket.
In President’s address today he said, “it is time for the top 2% of American earners to pay more. I just believe that anybody making over $250,000 a year should go back to the income tax rates we were paying under (President)-- back when our economy created nearly 23 million new jobs, the biggest budget surplus in history, and plenty of millionaires to boot.”
It’s time for Democrats to start initiating policies proven successful, and President Obama’s recall to the administration of Bill Clinton makes sense and takes back the national conversation on job creation. Here is Bill Clinton’s formula.
If unemployment seems like an insurmountable problem, never fear: Bill Clinton is here, and he has solutions—14 of them, which he’ll bring next week to the first U.S.-focused meeting of the Clinton Global Initiative. Among the highlights of his jobs blueprint, as shared with Newsweek:
With Americans still out of work, here are 14 ways to put Americans back to work. It’s no secret in 2012, it’s still the economy.
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