Posted in: Politics

President Obama Calls For Middle Class Tax Freeze, Says He’s Open To New Ideas

President Obama Tax Freeze for middle class

For President Obama, winning a second-term has so far meant business as usual as he announced on Friday plans to freeze tax rates on the middle class. Obama also said he wants Bush era tax cuts to expire for the wealthiest Americans who do not need the additional tax discounts.

According to the POTUS, he has setup a bipartisan meeting at the White House where next week he will meet with Republicans to discuss what can be done to avoid a financial cliff.

Obama claims that he is prepared to discuss spending cuts and health care reforms but only if those plans include tax revenue increases on the rich. According to Obama:

“I’m open to compromise. I’m open to new ideas. I’m committed to solving our fiscal challenges, but I refuse to accept any approach that isn’t balanced.”

Obama’s announcement comes just hours after House speaker John Boehner said Republicans oppose any type of income-tax rate increases regardless of a person’s individual wealth. According to Politico, Boehner and his Republican counterparts may be willing to reform the tax code and fix loopholes.

At this time, Boehner tells the Washington Post that he won’t “box himself in” when it comes to negotiations. Instead, Boehner places the responsibility of negotiations on President Obama, noting:

“This is an opportunity for the president to lead. This is his moment to engage the Congress and work toward a solution that can pass both chambers.”

Will there be a new and vibrant President Obama during a second term in office? Negotiations next week could tell us exactly what we can expect from the White House in the next four years.

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Comments

35 Responses to “President Obama Calls For Middle Class Tax Freeze, Says He’s Open To New Ideas”

  1. Patrick Frye

    Over the last 10 years or so the super-rich, the 0.1 percent, have disproportionately come from the financial industry. I forget where I read about that trend, and I can't provide numbers, but it used to be the rich were more evenly spread out among industries. Anyway, much of that profit is derived from investments, which I believe have skyrocketed due to the power of computers and digital trading.

    If both parties cannot compromise on the top income tax bracket that's where dividends and capital gains taxes are likely to come in. Starting next year they will again be taxed as regular income if the Bush tax cuts package expires. So Republicans could work with Democrats to llet that part expire and still technically stand by their oath to "not raise taxes."

    Of course, if they do this even the little guy will be affected. Capital gains are sale of stocks, bonds, precious metals and property.

    Other food for thought when it comes to tax brackets: http://www.forbes.com/sites/mikepatton/2012/10/15/do-tax-cuts-increase-government-revenue/.

  2. Carl Douglas

    You are refering to high frequency trading. Dividend income is taxed ( will be) as regular income but captial gains is moving from 15 to 20%

  3. John Groesse

    I have learned that if you live in this country you should be willing to sacrafice whatever is neccessary for the common good. God knows the middle class has been doing it forever. The people who have windfalls in this country or work hard and make a lot of money should be glad to help because without this country they would be like me, one of the now poor middle class. Personally, if they don't help they need to take there money and buy and island and live on it. When you got all that money you were helped by every system this country has to make it work for you including the people who support your business, you know, the businesses you did all by yourself with no ones help.

  4. Hope Chapman

    I believe it's not only appropriate for the rich to pay higher taxes, but also fair. The "Middle Class" is nonexistent in my opinion. Why Obama keeps talking about the Middle Class is beyond me cuz the Middle Class actually began going away two decades ago due to the wealthiest tax cuts becoming a burden on the Middle Class. The wealthiest have racked the Middle Class over the coals for the past two decades until the Middle Class was put in the grave! Right now, today, there is technically only the upper class and lower class. Those that used to be in the Middle Class are now part of the Upper Lower Class. You can't get blood from a stone! The poor have nothing to give. That only leaves the wealthy upper class! And the wealthy upper class don't like having to get off their butts to contribute. They prefer taking advantage of te less fortunate and being greedy to keep and profit what they have instead of actually getting off their butts to actually "help". Oh, God forbid that they have to actually help! People throughout the nation are fed up, and rightly so! And Congress,…What a joke! Those greedy mungers all need to be kicked out,…Every one of them!,…And replaced with new people that are only allowed two year terms so they don't get too comfortable in the positions to pursue their own interests instead of listening to the people like they're supposed to! Hell yeah,…Raising taxes on the wealthiest is longggggggg overdue!

  5. Gene Minter

    People have issues with rich fat bald white men paying taxes but they don't have an issue with athletic built black men paying taxes. I guarantee you if you poll republicans almost 100% of them would say if you had to tax one group with no way out would you tax old fat and bald white billionaires or young black athletic millionaires? I'm sure the guys making less would be fitting the bill…it's unreasonable minds like that which is leading to the downfall of not only our country but families and mankind.

  6. Shawn Padgett

    Yes the rich should be taxed more! That's a no brainer! If you make more you pay more! Why should the rich get richer and the poor get poorer? Plus if it wasn't for the "middle class" the world wouldn't be there for the rich to ruin! Meaning it is is middle class that keeps this country going. We are the ones who work the docks, factories and waitress, NOT the rich.

  7. Crystal Marsh-Arnold

    of coarse the rich should have to pay more taxes they make more money so why should they pay the same amount of taxes that the lower class pays. we barely make anything and we taxed like crazy while the rich make plenty of money money and pay nothing in taxes. it's a joke.the government wants to close a gap in the poverty levels of this country they need to fix the tax problems, then give every government official a big fat pay cut there is no reason some of these people should be making over a 100,000 a year let alone three and four hundred thousand for what. that money could be going to raise the minimum wage. it should be at least $ 10.00 nationwide but there are a lot of states like ohio that is only $7.75 that is pathetic that isn't even close to enough to be able to support yourself on let alone a family. then they need to make it nationwide that if you are on welfare you can only recieve assistance for up to two children to stop these women who are living on welfare by popping out a kid all the time just so they don't have to get a job. there are so many people who need assistance but can't get it because there is not enough funding because it is being abused by women having five and six kids.they need to make it nation wide for drug testing to get welfare as well it would eliminate half of the people on welfare right now if you eliminated those two things.

  8. Lora Taylor Hambel

    i feel they should drug test people on welfare..the working people has to pass a drug test so why not people on welfare too.. i say its only fair..i mean come one there is a reason why most of the people are living off welfare.. so i agree so much

  9. Shane M. Lindauer

    Shawn…just food for thougth. The top 10% (those with incomes over $112,000) of income earners pay 71% of all federal income taxes. While I'm not in that 10%, I believe that they have paid there "fair share." Making up a large percentage of that 10% is small business owners. Those are people who do and have worked hard most of their lives, created small businesses and then jobs for the "middle class" like me. The problem is out of control govt. spending, not certain groups not paying enough in taxes. The president is playing class warfare which is contrary to the ideas that made America great.

  10. Lawrence Mintz

    Yes they should. There something amiss when Mitt Romney pays a lower tax rate than I do.

  11. Diane Descoteaux

    It's the middle class that is keeping the rich richer and they should pay morethink it's approtiate for them to pay more.How far do they think a 500. dollar pay check goes after our taxes are out? And we would save money on classes if your child needs special classes for reading or math they are able to get help through ss why? It should be for people who really need helpfor a life time but parents can get them on ss and they don't need it.

  12. BikerBear McDougalle

    It amazes me how many people out here think the rich pay very little in taxes. How about Obama what is his rate? He has added 10 million to his bank account if four years. He should show his tax papers for the last four years. I'll bet he paid a lower than I did for most of it. Because of investments, I pay a lower rate on investments than I do for Income.Romney gave more to charity last year than most rich people as most like to call us have. I have no problem with his rate. I know for a fact I pay a lot more than you guys out here saying I pay. Taxes are a three part setup, personal income, Investment Income and business Income. If you total all the rats togather a RICH Person pays almost 50% in taxes. And you want more.Why?

  13. Dana J. Bailey-scherman

    What amazes me if 47% aren't paying taxes, it sure makes easy to say tax the ones who are. Oh for your info I am far from rich. I am just tire of people thinking they entitle to something that someone worked hard for

  14. Patrick Frye

    Didn't realize they were treated separately: "Right now, the maximum federal rate on long-term capital gains and dividends is 15%. Starting next year, the maximum rate on long-term gains is scheduled to increase to 20% (or 18% on gains from assets acquired after Dec. 31, 2000, and held for over five years). The maximum rate on dividends will skyrocket to 39.6%.

    People in the lowest two rate brackets of 10% and 15% currently pay 0% on long-term gains and dividends. Starting next year, they will pay 10% on long-term gains (or 8% on gains from assets acquired after Dec. 31, 2000, and held for over five years) and 15% and 28%, respectively, on dividends." http://online.wsj.com/article/SB10001424052702303879604577410143118102490.html

  15. David Black

    That's right, lets tax the rich for being able to make money, for living the dream this country was founded for. As a veteran, and a member of the lowest income bracket, there is no need to raise taxes on anyone. Stop using the American tax dollar to pay for all the perks the potus (all of the extra vacations and shopping trips) and congress have that goes with their salary. Create jobs to get more people working and increase what is coming in taxes. Force those that have lived their entire life on welfare to get a job and pay taxes. Stop letting the immigrants that come to America get a free ride by not having to pay taxes for the 20 years they are here. Get rid of the illegals that are the biggest burden on American taxpayers.

  16. Pete Faucher

    NOOOOOOOOOO
    The rich do NOT need to pay more in taxes. GOVERNMENT needs to start spending less on free govt give away programs. Of course there are always people who need these programs for a short period of time. However there are far too many people who simply abuse the programs, and use them as a way of life. They're NOT FREE people. Others are paying for them. Get off your sorry azzes and support your self, support your own kids!
    I have enough dependents that I'm supporting, I don't need to support your's!

  17. Patrick Green

    I think it is absolutely disgusting how everyone here thinks that people who make more should be taxed more. If it was you making more, I bet you wouldn't feel how you feel now! Why is it their fault they chose to go to school and have a good career? For thosr who don't like it, do something about your income. We are basically telling people not to be more successful than others because they will pay for it! It's their money, they should be able to keep it like everyone else. The mentality of people who think the rich should pay for the less fortunate makes me sick, and I'm not exactly rolliin in the dough right now! Everyone should pay the same tax, I'm sorry people are poor, but go to school and earn your income just as the more fortunate have!

  18. Roger Case

    They already pay substantially more taxes you idiots! Why should anyone pay a higher percentage than anyone else? It should be a flat tax, that way they would continue to pay "More" taxes based on income not on a punative aditional tax.

  19. Tracie Wright

    Why should you have to pay more just because you have prospered and done well for yourself. I believe in a flat tax. If 10% is good enough for the church then why not the government?

  20. Teresa Palumbo Sanfillipo

    I am so with you on this Patrick. When did it become disrespectful for you to have a career and be successful because you wanted more for you and your family. People need to have more self respect and quit living off the system because it's the easy and lazy way out. The people that are rich took lots of risk and sacrifice to become where they are now. Alot of it wasn't just a 40 hr a week job, it was 24/7 type of job for many years to build a company and supply jobs for many people and their families, so why should they be the ones to be taxed so the ones who choose not to work can sit on their butts and reap the benefits!

  21. Leslie Farmer

    People amaze me on this comments page ffolks are talking about "if people are successful they should be happy to help and pay for the lazy oh sorry the POOR" that is redistribution of wealth (socialism) and one individual is talking about only taxing "old fat bald white guys" "not you black athletes that are rich" (racism) and yes blacks can be racist look up the definition in Websters. Everyone should pay the exact same percent no deductions because of welfare babies or investments 15% gross off the top. Oh and if you are collecting any kind of assistance no refunds you are already getting free money from the rest of us

  22. Jerry Mintz

    There is no mystery LEM. The United States of America is totally in the hands of the very, very rich. No matter who is president.

  23. George H. Cheney

    When does being rich begin? Are the administrations Liberal friends, politicians, "entertainers", athletes, and criminals going to be included? Most likely not! Until everyone, including the companies who do not pay any taxes, are required to pay some tax before, no one should be asked to pay more taxes. Class and Social welfare is only excuse to gain more political power and control over the people. The government needs to stop providing special benefits to buy more voters. All politicians should be required to live under any law they pass…no exceptions! Government services are not free and should only be provided to those who have earned them or are truly unable to provide for their own support…not wanting to work is not a handicapping condition. Being born here or coming to this country is not a free pass to a unlimited lifetime benefits. The government didn't build this Country and does not add any wealth to people…both are the result of hard working people.

  24. Melissa Lynch

    So I'm a college student earning a degree so that I can stop living paycheck to paycheck. I'm paying for school on my own with no help from anyone why should I go to schoo, spending my money to better my life when in the end I'm just going to get taxed more. I'm going to school to better my life not pay for other people that are to lazy to get off their butts and better theirs. If your not happy with your current situation do something about it I am. stop expecting the government and others who work hard for their money to support you.

  25. Jeanette Brown

    This is America, everybody is given the same opportunity. If you want more get off your ass and earn it! Are you kidding me if anybody help a business along the way they were compensated for it.

  26. Brian Mcelhaney

    I hope like hell he taxes the RICH, then when all you morons get laid off because they can't afford to pay you or because they downsize to under the so called " rich" status. You don't tax people because they got off their asses and made money. America the I want a free handout place to be. Lol lazy pricks!!! And if people with money have a lower tax rate then you it's because they baught enough stuff and had weight offs.

  27. Coleen's Page

    If the rich paid the same flat tax as everyone else with no tax breaks and no loop holes that would be great. There are already restrictions and monitoring of welfare recepients. Most poor people can't get help and can't even get a job. There are alot more problems than just taxes verses welfare.