Obama’s Tax Cut Proposal Divides the GOP
The most vital part of President Barack Obama’s jobs plan is the payroll tax cut, which in turn became a problem to the Republicans. The opposition is divided about how to react about the president’s proposal that was announced during his speech in front of a joint session of Congress.
The Republicans like tax cuts in general but the conservatives didn’t like the one year payroll tax break for employees when it was made into law in 2010. It was part of the deal to extend the tax breaks for the rich that was approved by President George W. Bush. It was amended to attract Democrat’s votes at that time.
President Obama proposed to extend the payroll tax break for another year and increase it by more than 50 percent. The conservative Republicans said that they would resist the president’s plan. The tax cut would cost $175 billion and they are skeptical about the claims made by the administration that it would increase jobs in the country.
House Speaker John A. Boehner and Majority Leader Eric Cantor said that they are open about the idea and would negotiate with the president for a compromise. The Republican leaders want to avoid giving the impression that the GOP supports tax breaks except for the average workers.