Bush tax cuts: Obama will negotiate - Nov. 3, 2010A day after Republicans won control of the House of Representatives, President Obama said that he is willing to negotiate to ensure the Bush tax cuts are extended for the middle class by Jan. 1.
"How that negotiation works itself out, I think it's too early to say. But, you know, this is going to be one of my top priorities," Obama said during a press conference Wednesday.
I've seen people around here suggesting that Obama would take a hard stand here, but apparently that's not going to happen. I'm not surprised. While both sides are talkikng about working together, Obama is the one who needs to move more towards the center if wants to be re-elected. This is an issue he can compromise on and not really betray any core left wing ideals. Afterall, the income tax system is still progressive even with cuts for the highest earners.
The article seemed to feel the likely compromise solution would be to pass a temporary extension for everyone and revisit the issue in two years. The thinking being if the economy improves, the Democrats might be able to push for letting the cuts expire in order to help reduce the deficit. And the Republicans would go for it because they want to keep all the brackets tied together as one package, and not have to face arguing solely for tax cuts for top earners without having tax cuts for the middle and working class also at stake.