U.S. President Barack Obama takes a question from a reporter during a news conference that focused on the tax cut compromise in the Brady Press Briefing Room of the White House in Washington on December 7, 2010. UPI/Roger L. Wollenberg |
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WASHINGTON, Dec. 7 (UPI) -- President Obama took both Democrats and Republicans to task Tuesday, saying he agreed to a compromise on tax rates to protect the American people.
"I know there are some who would have preferred a protracted political fight," Obama said during a news conference focused on the deal reached Monday with Republicans that extend current tax rates for all income levels. "We're going to keep 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."
Among other things, tax rates enacted during George W. Bush's administration would be extended for two years, unemployment benefits extended for 13 months, payroll taxes cut by 2 percent, and a package of tax benefits included in the stimulus package extended, including tax breaks on college tuition and small businesses.
He said he agreed to extend the lower tax rates for the wealthy that he opposes but the Senate Republicans "wouldn't budge on" because it's "a good deal for the American people."
"This isn't an abstract debate," Obama said. "It is real money for real people."
Extending the tax rates to high-end taxpayers is the "holy grail" for Republicans, Obama said, allowing Republicans to dig in and block relief for the middle class and the unemployed. He noted the task would be more difficult in January, when Republicans become the majority in the House and get several more votes in the Senate.
"I've said before -- I felt the middle-class tax cuts were being held hostage," Obama said, "I think it's tempting not to negotiate with hostage-takers -- unless the hostage gets harmed."
Obama said in the two years before the tax rates come up for consideration he hopes to work with Congress to revise the U.S. tax code.
With Democrats controlling Congress and the White House, Republicans have been able to "watch us take all these emergency actions ... pointing their fingers and saying that's their problem," Obama said. "Over the next two years, they're going to have to show me what they think they can do."
Obama became most animated when asked about people in his party questioning his core values and where his line in the sand is.
"I've got a whole bunch of lines in the sand," he said, including not making tax rates for wealthy taxpayers permanent and preserving help for low- and middle-income households.
"This notion that somehow we are willing to compromise too much reminds me of the debate we had during healthcare," Obama said. "This is the public option debate all over again."
If compromise is considered "a sign of weakness," Obama said, and is "the standard by which we are measuring success ... then let's face it, we will never get anything done. People will have the satisfaction of (having) a purist position, and nothing will be done for American people."
Obama said he looked forward to seeing Republicans test "whether I'm itching for a fight on a whole range of issues," just not now with middle-class tax hikes and unemployment benefit cuts looming Jan. 1. "I just want to make sure the American people aren't hurt because of a political fight."
He reminded Democrats that they need to understand this is "a long game, not a short one."
To Republicans, he said, "I look forward to seeing them on the field of competition."
