Barack Obama finally caved to Republican demands and will not raise taxes in January on America’s top earners. The president cut a deal with Republicans on extending the Bush tax cuts.
FOX News reported:
The Obama administration, as part of last-minute negotiations with congressional leaders over the expiration of the Bush-era tax cuts, is proposing a one-year payroll tax reduction that would cut the amount contributed to Social Security from 6.2 percent to 4.2 percent, a senior congressional aide confirmed to Fox Business.
News of the proposed payroll tax reduction, originally reported by the Wall Street Journal, came ahead of a White House news conference Monday evening in which President Obama renewed his calls for tax relief targeting the middle class and his criticism of making tax cuts for the wealthiest Americans permanent.
But in the end, he said, a compromise must be reached before the Bush-era tax cuts expire at the end of the year, because letting the cuts expire “would be a chilling prospect for the American people.”
Ordinary Americans would become “collateral damage for political warfare in Washington,” he said. “I am not willing to let that happen.”
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Senate Republican Leader Mitch McConnell released this statement:
U.S. Senate Republican Leader Mitch McConnell made the following statement Monday regarding a framework of a bipartisan agreement to prevent tax hikes on every American taxpayer :
“I appreciate the determined efforts of the President and Vice President in working with Republicans on a bipartisan plan to prevent a tax hike on any American and in creating incentives for economic growth. Their efforts reflect a growing bipartisan belief that a new direction is needed if we are to revive the economy and help put millions of Americans back to work. Members of the Senate and House will review this bipartisan agreement, but I am optimistic that Democrats in Congress will show the same openness to preventing tax hikes the administration has already shown.”
The left is in full meltdown.
Check out the comments at The Huffington Post.