Obama’s Tax Deal Protects ‘Working Families,’ Jobless Benefits
December 6, 2010
(ChattahBox Political News)— President Obama just addressed the nation to announce the parameters of a “bipartisan agreement” to extend all of the Bush tax cuts for an additional two-years, in exchange for the extension of unemployment benefits for the long term employed for 13-months and other stimulative tax credits demanded by Obama for the middle class. The President prefaced his remarks by saying he “completely disagrees” with the Republicans’ demands for giving the wealthiest Americans a tax cut. But he said he would not allow “working families” to become “collateral damage for political warfare here in Washington.”
Obama directly addressed the liberal base of his Party who wanted to see more of a fight, before compromising with the Republicans‘ hostage taking demands to provide their rich supporters with a tax cut, while unemployment benefits were cut off.
“I’m not willing to let our economy slip backwards just as we’re pulling ourselves out of this devastating recession,” said Obama. “I’m not willing to see two million Americans, who stand to lose their unemployment insurance at the end of this month, be put in a situation where they might lose their home, or their car, or suffer some additional economic catastrophe. So, sympathetic as I am with those who prefer a fight over compromise, as much as the political wisdom may dictate fighting over solving problems, it would be the wrong thing to do.”
At this point, the package of concessions obtained by the White House seem to solidly benefit middle class Americans, as well as providing a boost to a sagging economy.
Besides the unemployment benefits, a two percent employee payroll tax cut holiday, the extension of the $1,000 child tax credit and the earned income tax credit are also part of the deal.
Additionally, the White House made concessions on the estate tax, offering exemptions for estates worth up to $5 million for individuals and $10 million for couples.
A business incentive was also thrown in, providing businesses with a tax break to write off investments to replace outdated equipment.
Obama pointed out that there are parts of the compromise tax cut deal that both sides would find fault with, but he said compromise was necessary to ensure our weak economy doesn’t deteriorate further.
“I have no doubt that everyone will find something in this compromise that they don’t like, in fact, there are things in here that I don’t like,” said Obama.
So, there you have it. There is no question, the Republicans backed up the Democrats and the White House against the wall, but at the end of the day the middle class at least came away with some critical benefits.