Saturday, December 11, 2010

What does President Obama really think about our current tax rates?

As you may know, President Obama has been trying to work out a tax deal compromise with Republicans in Washington.

The deal is very simple: Obama has agreed to extend the current tax rates for two more years if Republicans agree to extend unemployment benefits. Obama has railed against the current tax rates for years, claiming that we need to raise taxes on those who make more than $250,000 per year. But apparently he has decided that he has to make a compromise with Republicans in order to get something done.

As you can imagine, this is a situation that can get very interesting in a very short period of time.

Many Democrats, including Speaker Pelosi and her followers in Congress, have rejected Obama's tax deal with Republicans. The Democrats want to extend unemployment benefits, but they are against extending the current tax rates because they want to see tax increases for "wealthy" Americans. (I'm not really sure what their definition of wealthy is.)

This means that Obama has had to begin the process of trying to persuade fellow Democrats to go along with his compromise with Republicans. In doing so, Obama said that his tax deal with Republicans has the "potential to create millions of jobs."

That's right: President Obama said that the extension of the current tax cuts enacted by the former Bush administration has the potential to create millions of jobs. If that's true, then why doesn't President Obama support making the current tax rates permanent?

It's a simple question.