Obama pushes extension of tax cuts for middle class – Fond du Lac Reporter

WASHINGTON — President Barack Obama called on Congress Monday to extend tax cuts for only low and middle income earners while allowing taxes to increase for families that make more than $250,000 a year.

“Let’s not hold the vast majority of Americans and our economy hostage while we debate the merits of another tax cut for the wealthy,” said Obama, flanked by a dozen people the White House said would benefit from the middle class-oriented tax cut extension.

The Bush-era tax cuts were temporary when Congress passed them. They will expire at the end of the year unless Congress votes to extend them.

Obama wants Congress to pass a one-year extension of the Bush-era tax cuts for households making less than $250,000 before they expire at the end of the year. He said the outcome of his November election contest with Republican rival Mitt Romney would then determine the fate of the tax cuts for higher income earners.

“My opponent will fight to keep them in place. I will fight to end them,” he said.

White House spokesman Jay Carney said Obama “would not sign” a bill that extended the whole range of tax cuts in full.

Romney supports extending the tax cuts for all income earners.

Out of 118.7 million U.S. households in 2010, about 2.5 million (2 percent) had incomes of $250,000 or more, according to estimates by the Census Bureau.

The contours of the tax debate are largely the same as they were when the cuts were due to expire at the end of 2010. While Obama opposed an extension for higher income earners then as well, he ultimately agreed to full two-year extension, in part to win concessions for other legislation.

Extending the tax cuts only for households making below $250,000 costs the government about $800 billion less over 10 years than extending them for everyone. The full cuts cost the government about $450 billion a year.

Obama was to continue the tax debate today during a campaign trip to Iowa.