House Republicans slammed President Obama’s deficit plan Monday, ushering in a new battle for Mr. Obama who said Monday that he will push for a deficit reduction plan that includes tax increases for individuals making more than $1 million.
Speaking Monday, Tennessee congressman Chuck Fleischmann slammed Mr. Obama’s plan, saying it would stall job creation and further hinder an economic recovery.
“There is one thing you can always count on from President Obama: a new day, a new tax increase. Last week he proposed a new tax to pay for his jobs plan, and this week he is proposing a new tax to pay for his deficit plan,” Mr. Fleischmann said. “This President has not met a tax increase he did not like. Tax increases like these have already been rejected by both parties, and that will not be changing. Another tax increase on job creators and capital in this country is unacceptable.”
Mr. Obama, who addressed reporters from the White House Rose Garden, said additional deficit reduction plans would reassure investors and put the nation on track towards an economic recovery. Speaking Monday, Mr. Obama used the address to push back against Republican assertions that the plan amounted to “class warfare.”
“This is not class warfare — it’s math,” Mr. Obama said.
“The money has to come from some place,” he continued. “If we’re not willing to ask those who’ve done extraordinarily well to help America close the deficit… the math says everybody else has to do a whole lot more, we’ve got to put the entire burden on the middle class and the poor.”
The deal, which includes spending cuts and tax increases on individuals making more than $1 million, is widely seen as Mr. Obama’s latest attempt to reach a compromise with House Republicans, many of whom said they will not support a package including tax increases.
Still, Mr. Obama said he will push forward with the plan. Speaking Monday, Mr. Obama touted one of the packages key initiatives, the “Buffett Rule.”
The concept, named for billionaire investor Warren Buffett, would require Americans earning more than $1 million a year to pay at least the same tax rate as middle-class households. The chairman and chief executive of investment company Berkshire Hathaway is widely known to have friends on both sides of the aisle, including former Treasury Secretary Henry Paulsen and Federal Reserve chairman Ben Bernanke.
