House Republican leader John Boehner proposed a two-part plan that he said would stimulate the economy and stop the tax hikes suggested by President Barack Obama during his speech about the nation’s economy on Wednesday, September 8.
Obama said he wanted to let the tax cuts passed under President George W. Bush–in 2001 and 2003–to expire at the end of 2010, but just for individuals earning more than $200,000 annually or couples earning more than $250,000. This plan would raise tax rates on the wealthiest 2% in the country.
Instead, the GOP wants to enact a two-year freeze on all current tax rates for families and small businesses. The Republican plan to extend tax cuts for everyone would add more than $36 billion to the federal deficit next year, according to a recently released congressional analysis.