How to pay for Obama job plan? Tax hikes
By ERICA WERNER Associated Press September 12, 2011 8:58PM
President Barack Obama (right), accompanied by Vice President Joe Biden, holds a copy of his American Jobs Act during a statement in the Rose Garden of the White House in Washington, D.C., on Monday, Sept. 12, 2011. | AP photo
Updated: November 12, 2011 12:40AM
WASHINGTON — In a sharp challenge to the GOP, President Barack Obama proposed paying for his costly new jobs plan Monday with tax hikes that Republicans have already rejected, and he accused them of political motives if they still refuse to go along.
“The only thing that’s stopping it is politics,” Obama declared.
The president’s proposal drew criticism from House Speaker John Boehner, who’d previously responded in cautious but somewhat receptive tones to the $447 billion jobs plan made up of tax cuts and new spending that Obama first proposed in an address to Congress last Thursday.
“It would be fair to say this tax increase on job creators is the kind of proposal both parties have opposed in the past. We remain eager to work together on ways to support job growth, but this proposal doesn’t appear to have been offered in that bipartisan spirit,” Boehner spokesman Brendan Buck said.
The biggest piece of the payment plan would raise about $400 billion by eliminating certain deductions, including on charitable contributions, that can be claimed by wealthy taxpayers. Obama has proposed that in the past — to help pay for his health care overhaul, for example — and it’s been shot down by Republican lawmakers along with some Democrats.
Yet by daring Republicans anew to reject tax hikes on the rich Obama could gain a talking point as the 2012 presidential campaign moves forward, if not a legislative victory.
At a Rose Garden event Monday, Obama brandished his jobs bill in the air and surrounded himself with police officers, firefighters, teachers, construction workers and others he said would be helped by it. Adopting a newly combative tone that’s been welcomed by dispirited Democrats, Obama said he was sending the bill to Capitol Hill and demanded immediate action.
“This is the bill that Congress needs to pass. No games. No politics. No delays,” Obama said.
“Instead of just talking about America’s job creators, let’s actually do something for America’s job creators.”
Obama told of reading a quotation in a newspaper article from a Republican congressional aide who questioned why Republicans should work with Obama since the result might just be to help the president politically. “That was very explicit,” Obama said.
Buck, the Boehner spokesman, said the anonymous quote cited by the president didn’t reflect the view of Republican leadership.
And even as Obama was accusing Republicans of playing politics, he and his Democratic allies were marshaling an aggressive political response of their own.
Obama was traveling to Boehner’s home state of Ohio Tuesday to promote his jobs plan, and following that with a trip Wednesday to North Carolina, a traditionally Republican state he won in 2008.
The back-and-forth was taking on elements of a political campaign, with high stakes for both sides as.
His jobs package would combine tax cuts for workers and employers by reducing the Social Security payroll tax, with spending elements including more money to hire teachers, rebuild schools and pay unemployment benefits.