Please verify

Watch LIVE

Report: Obama to Announce Extension of Bush-Era Tax Cuts for the Middle Class


President Barack Obama is expected to address the nation from the White House on Monday, where he will purportedly call for an extension on tax cuts for the middle class. The announcement comes just months away from the 2012 presidential election.

With the recent jobs report showcasing a high unemployment rate (8.2 percent), the president may be seeking a method to steer clear of unfavorable numbers, while providing news that will invigorate middle-class voters. Obama is expected to call on Congress to pass a one-year tax-cut extension for those individuals making under $250,000 per year.

(Related: Robert Gibbs Admits: ‘We’re Not Growing Fast Enough and We‘re Not Adding Enough Jobs’)

This is different from Republican plans, which would call for an overall continuation of the Bush-era tax rates. This more sweeping continuation would allow more wealthy individuals to hold onto their income. In contrast, Obama's plans would not benefit those individuals in higher tax brackets.

MSNBC has more about how the two parties will likely disagree over proposed measures:

The New York Times said Obama would announce the tax cut extension in the Rose Garden on Monday, citing un-named senior administration officials.

It reported that the proposal would mean another fight between the White House and Republicans, and could also “put him at odds with Democratic leaders like Representative Nancy Pelosi of California and Senator Charles E. Schumer of New York, who have advocated extending the cuts for everyone who earns up to $1 million”.

Its report said the announcement comes “as both parties and their presidential candidates head into the rest of the summer trying to seize the upper hand in a campaign that has been closely matched and stubbornly static”.

The president will apparently follow the announcement up by promoting his plans for a middle-class tax cut extension at a series of events in battleground states -- showcasing the issue's importance to his re-election prospects. The Bush-era cuts are expected to expire at the end of the year, causing what some analysts claim could be a detriment to overall economic recovery.

The expected announcement also comes as Obama's re-election campaign continues its efforts to paint GOP contender Mitt Romney as an out-of-touch, rich man who cannot possibly understand the plight of middle class Americans.

Most recent
All Articles