THE TELEGRAPH: President Barack Obama has announced that he would not extend tax cuts for the richest Americans passed by George W Bush, arguing that the country could not afford the luxury of aiding the wealthy.
Mr Obama said he would not renew the ten-year reduction for families making more than $250,000 (£160,000) a year and individuals making more than $200,000. He however favoured extending them for middle class Americans.
The tax cuts passed in 2001 and 2003 were one of Mr Bush’s signature policies and have always been controversial. Democrats blamed them for the massive deficit, while Republicans said they encouraged consumer spending and the “trickle down” effect.
They have become a central issue in November’s mid-term elections, when Mr Obama’s party is in danger of losing its majority in Congress largely because of anger over the economy and high unemployment.
The White House is trusting that the decision will prove popular with voters who have regarded the Obama administration as too friendly to Wall Street and the rich. It will provide Republicans with fresh ammunition for the case that the president is a high-taxing big spender. >>> Alex Spillius in Washington | Wednesday, September 08, 2010
