Compiled by Courier staff
President Barack Obama
President Barack Obama addressed the American public and the media on Tuesday afternoon to discuss the tax cut compromise bipartisan framework that had been reached. President Obama stated, “My number one priority is to do what’s right for the American people, for jobs, and for economic growth. I’m focused on making sure that tens of millions of hardworking Americans are not seeing their paychecks shrink on January 1st just because the folks here in Washington are busy trying to score political points.
And because of this agreement, middle-class Americans won’t see their taxes go up on January 1st, which is what I promised — a promise I made during the campaign, a promise I made as President.”
He continued, “Because of this agreement, 2 million Americans who lost their jobs and are looking for work will be able to pay their rent and put food on their table. And in exchange for a temporary extension of the high-income tax breaks — not a permanent but a temporary extension — a policy that I opposed but that Republicans are unwilling to budge on, this agreement preserves additional tax cuts for the middle class that I fought for and that Republicans opposed two years ago.”
He went on to cite three of them. Number one, if you are a parent trying to raise your child or pay college tuition, you will continue to see tax breaks next year. Second, if you’re a small business looking to invest and grow, you’ll have a tax cut next year. Third, as a result of this agreement, payroll taxes will be cut in 2011, which will add about $1,000 to the take-home pay of a typical family.
The president emphasized that these are real money facts that effect real people, these are not policies that are abstract or philosophical. This agreement is intended to help create job opportunities and stimulate economic growth.
He acknowledged the fact that there are many including Democratic leaders who feel that there should have been more of a fight against the Bush tax cut extension that is in the compromise. His response to this argument, is that the debate on that is not over.
“I’m as opposed to the high-end tax cuts today as I’ve been for years. In the long run, we simply can’t afford them. And when they expire in two years, I will fight to end them, just as I suspect the Republican Party may fight to end the middle-class tax cuts that I’ve championed and that they’ve opposed.”
However, the financial needs of millions of Americans trumps the need for a debate right now. He said, “So we’re going to keep on having this debate. We’re going to keep on having this battle. But in the meantime I’m not here to play games with the American people or the health of our economy. My job is to do whatever I can to get this economy moving. My job is to do whatever I can to spur job creation. My job is to look out for middle-class families who are struggling right now to get by and Americans who are out of work through no fault of their own.
A long political fight that carried over into next year might have been good politics, but it would be a bad deal for the economy and it would be a bad deal for the American people. And my responsibility as President is to do what’s right for the American people. That’s a responsibility I intend to uphold as long as I am in this office.”
The president then opened the floor for questions from the media, and when accused of flip-flopping on the Bush tax issue his response ignited a flame. “Hold on a second, Ben. This isn’t the politics of the moment. This has to do with what can we get done right now. So the issue — here’s the choice. It’s very stark. We can’t get my preferred option through the Senate right now. As a consequence, if we don’t get my option through the Senate right now, and we do nothing, then on January 1st of this — of 2011, the average family is going to see their taxes go up about $3,000. Number two: At the end of this month, 2 million people will lose their unemployment insurance.
Now, I have an option, which is to say, you know what, I’m going to keep fighting a political fight, which I can’t win in the Senate — and by the way, there are going to be more Republican senators in the Senate next year sworn in than there are currently. So the likelihood that the dynamic is going to improve for us getting my preferred option through the Senate will be diminished. I’ve got an option of just holding fast to my position and, as a consequence, 2 million people may not be able to pay their bills and tens of millions of people who are struggling right now are suddenly going to see their paychecks smaller. Or alternatively, what I can do is I can say that I am going to stick to my position that those folks get relief, that people get help for unemployment insurance. And I will continue to fight before the American people to make the point that the Republican position is wrong.
Now, if there was not collateral damage, if this was just a matter of my politics or being able to persuade the American people to my side, then I would just stick to my guns, because the fact of the matter is the American people already agree with me. There are polls showing right now that the American people, for the most part, think it’s a bad idea to provide tax cuts to the wealthy.
But the issue is not me persuading the American people; they’re already there. The issue is, how do I persuade the Republicans in the Senate who are currently blocking that position. I have not been able to budge them. And I don’t think there’s any suggestion anybody in this room thinks realistically that we can budge them right now. And in the meantime, there are a whole bunch of people being hurt and the economy would be damaged. And my first job is to make sure that the economy is growing, that we’re creating jobs out there, and that people who are struggling are getting some relief. And if I have to choose between having a protracted political battle on the one hand, but those folks being hurt or helping those folks and continuing to fight this political battle over the next two years, I will choose the latter.”
The president appeared to make it clear that he doesn’t like all that these cuts bring, yet time is critical, and probably the most provocative statement made to explain the position that he was put in was the following when the question was asked: “Why should they be rewarding Republican obstruction?”
The president’s response: “Well, let me use a couple of analogies. I’ve said before that I felt that the middle-class tax cuts were being held hostage to the high-end tax cuts. I think it’s tempting not to negotiate with hostage-takers, unless the hostage gets harmed. Then people will question the wisdom of that strategy. In this case, the hostage was the American people and I was not willing to see them get harmed.”