President Barack Obama will propose a one-year extension of the Bush-era tax cuts for families earning less than $250,000 today, an effort to shift the conversation away from the sagging economy and onto ground of tax fairness, which Mr. Obama prefers.
On Monday, Mr. Obama will appear in the East Room, surrounded by people who would benefit from the extension, an administration official said. It’s another display of the power of incumbency, whereby a president can command attention for his ideas in grand surroundings not available to his challenger.
Mr. Obama will make the same case on a campaign trip Tuesday to Iowa.
Mr. Obama has long supported a permanent extension of Bush-era tax cuts for families earning less than $250,000, and has called for those aiding wealthier families to expire. But Monday’s event marks the first time Mr. Obama will specifically call for a one-year extension for the lower earning group, a nod toward the desire to do something in the short run to create more certainty in an uncertain economic climate.
Robert Gibbs, an adviser to the Obama campaign, predicted the one-year extension will have “a decent impact on the economy.”
“We need to give middle class families the certainty that they need and deserve that the tax rates that they’re paying this year aren’t going to change next year,” he said on MSNBC’s “Morning Joe.”