Change of Heart: More Democrats now oppose the Obama Plan for Tax Cuts

With just a couple more months to go before the U.S. midterm elections, American politicians are now more than busy wrapping up their campaigns and at the same time deciding on critical issues in order to boost their image. Since the start of the recession, the nation has been very consistent in asking the government for one specific thing and that is to create jobs. The previous stimulus package presented by no other than Pres. Obama was seen as a failed attempt in generating employment. And today, the voting population has been very concerned about creating jobs up to the point where it will greatly influence their votes come election time.

The previous tax cuts by then President George Bush are already expiring and Congress has been puzzled by the possibility of extending it. Meanwhile, U.S. President Barack Obama has called for the expiration of these tax breaks. He later proposed that these tax cuts will only be extended to families who earn less than $$250,000 a year. It is interesting to note that over half of the total income in the United States is concentrated to the top 10% of the list of wealthiest people in the nation. He wanted to raise taxes especially to the wealthy class stating that this will generate enough income for the government to pursue other projects and avoid any further deficit.

Previously, Democrats have strongly supported Obama’s stance on this matter. But on Wednesday, and upon seeing the disagreement and discontent of millions of American citizens, numerous Democrats have softened their stance and now support the extension of tax cuts for all people regardless of income. Democrats have received intense pressure on their stance for this matter especially those who are running this November. Rep. Jim Marshall of D-Ga. argued that at this time of recession, the government should be well aware of consequences and avoid raising taxes.

Recently, there were about 31 nervous Democrats who signed a letter that was urging House Speaker Nancy Pelosi and Majority Leader Steny Hoyer, to abandon the Obama plan and support the extension of Bush-era tax cuts to everyone. With 435 House seats, 37 in the Senate and the Democratic majorities in both houses on the line, Democrats are afraid of being afraid of being tagged as “Tax Hikers” especially that the election is getting nearer. Obama has blamed the sudden change of heart to Republicans who wanted to take hostage the middle class tax cuts so that they can come up with an additional tax cut for the wealthiest 2% of the nation.

While Obama only supports tax cuts for people earning $250,000 and less, Republicans support a full renewal of all tax cuts, regardless of income, despite a 10-year cost to the government of about $700 billion above Obama's plan. House Republican leader John Boehner said that “If we're serious about helping our economy this month we need to stop the tax hikes, and we need to cut spending,". With several weeks to go, we can expect both parties to come up with strategies in order to win the hearts of the people and gain control of the House and the Senate.