This is so unserious it almost descends into parody. Even Democrats in the Senate last year didn’t bother to push the $250,000 cutoff that Obama proposed while he was in the midst of his Occupy fervor. They ended up bumping the limit to a million dollars — and still didn’t get it through Congress. Chuck Schumer complained with some justification that $250K in his state was a middle-class income.
Meanwhile, the Champion of the Middle Class proposes to exchange the tax hike on people making $250K for … what? A one-year extension of the Bush-era tax rates for people earning below that level. That’s actually a worse deal than Obama proposed in 2010 and 2011. In fact, it’s a worse deal than the two-year extension on all tax rates Republicans won after Democrats got skunked in the 2010 midterms.
A one-year extension won’t convince middle-class earners to invest their money or take more risks. All it will do is confirm that Obama plans to hike taxes on the middle class in a second term. If not, why propose a one-year extension rather than proposing making the Bush-era rates on those earners permanent?