Why Obama’s Tax Plan Is About More Than Ending Tax Cuts For The Wealthy

Brian Beutler - July 12, 2012, 5:31 AM

President Obama’s renewed push to end Bush-era tax cuts for income over $250,000 a year has clarified the stakes of this November’s election. But if he gets his way, Obama’s plan could simultaneously allow the country to at least temporarily avoid the massive budget tightening set to occur automatically at the beginning of next year, which economists fear could lurch the country back into recession.

In January, across the board cuts to defense and domestic programs, totaling $1.2 trillion over 10 years, are set to kick in automatically. At about the same time, all of the Bush tax cuts are set to expire, along with the payroll tax holiday and other temporary measures.