President Obama called Monday for Congress to pass another one-year extension of tax cuts for household incomes less than $250,000 in the coming weeks. This plan would leave the issue of whether to extend the cuts to everyone until after the election.
In January, the 2-year extension on the Bush tax cuts that President Obama and Congress agreed on in 2010 will end.
Obama said that extensions for the rich are “least likely to promote growth” and are a key reason why the federal government has shifted from the surpluses of the 1990s to the deficits that began during George W. Bush’s presidency and continue today. “We can’t afford to keep that up, not right now,” he said. “I just believe that anybody making over $250,000 should go back to the income tax rates we were paying under Bill Clinton.”