Cutting to the chase: It won't pass. Although voters support higher taxes on the rich – even some Democrats are wary that what counts as 'rich' in some states doesn't go as far in others.
President Obama on Monday called on Congress to pass a one-year extension of Bush-era tax cuts for the middle class, but not wealthier Americans. Households earning more than $250,000 can afford to pay higher taxes in the name of deficit reduction, he said.
“It’s time to let the tax cuts for the wealthiest Americans – folks like myself – to expire,” said Mr. Obama in an East Room appearance before an audience of about 150.
The president said he might act differently on this issue if the nation were in better fiscal shape. He’s not wild himself about paying higher taxes, he said. But the looming debt demands action.
“The money we’re spending on these tax cuts for the wealthy is a major contributor to our deficit,” said Obama.
“Unlike President Obama, Governor Romney understands that the last thing we need to do in this economy is to raise taxes on anyone,” said Romney campaign aide Andrea Saul in a statement.
Obama’s tax proposal is certain to drive Washington news for the day ahead. Here are three key points to help you understand the chatter: