President Obama called for a one-year extension of Bush-era tax cuts for Americans making less than $250,000 a year while ending the tax cuts for the wealthiest two percent of Americans. This is a sharp contrast to Republicans in Congress who are calling for an extension of the tax cuts for all tax brackets—even for millionaires and billionaires.
President Obama is siding with the majority of Americans in the Bush tax cuts debate. Fifty-three percent of voters agree the tax cuts should expire for those making more than $250,000. The tax cuts did little to grow the economy in the last decade, and average Americans are still facing high unemployment. There is no reason why someone like Mitt Romney—who earned more than $21.6 million in 2011 paid 14 percent in income taxes and paid no Social Security taxes on 99 percent of his income—needs more tax cuts.
Without Congressional action, the tax cuts are set to expire Jan.1, 2013.