Business, Economics and Jobs

Obama set to announce extension of tax cuts for middle class (VIDEO)


US President Barack Obama salutes as he disembarks from Marine One upon his return to the White House in Washington on July 8, 2012 from the Camp David presidential retreat.


Nicholas Kamm

WASHINGTON DC - President Obama will propose to extend George W Bush's taxcuts to families earning $250,000 or less for a year, in what is likely a effort to drum up more middle-class support for the president's re-election campaign. 

The president is set to announce the one-year extension of the tax cuts at 11:50 AM in the East Room of the White House, according to the New York Times, where he will be surrounded by the very middle-class American families set to benefit from the move.

Similar events are slated to be held in battleground states this week, according to campaign officials, including a Tuesday event in Cedar Rapids, Iowa, according to the Washington Post.

The president's address from Ohio Saturday spoke directly to the middle class, as he discussed a plan to re-direct military spending to infrastructure projects, and expand financial aid for students. 

Tax cuts will expire for families earning over $250,000 a year, ending benefits granted during the Bush years. 

The new tax hikes on high-earning families prompted some charges of "class warfare" on Twitter and elsewhere on the Internet today, as opponents countered that the hikes will penalize job-creators and harm the middle class. 

The tax-cuts will handily differentiate Obama from his opponent, Mitt Romney, who is regularly accused of catering to the whims of the rich by the incumbent's re-election campaign.

Obama campaign advisor Robert Gibbs spoke out against prolonging existing tax-cuts for the rich last week on CNN's "State of the Union" program.

"We have tried these different philosophies before; we know what tax breaks and tax cuts for the wealthy and [taking] financial regulations off of Wall Street mean. They mean economic calamity, they mean what we are dealing with now, versus a vision where we add jobs and build out the middle-class."