Congressional Republicans rejected the central economic
proposals underpinning President Barack Obama ’s State of the Union
address Tuesday night, saying they want to advance their own solutions aimed at
spurring economic growth for all income groups. In his first joint address to a
Congress now controlled by Republicans, Mr. Obama gained little traction for
his plan to lift the middle class by raising taxes on upper-income taxpayers
and expanding a range of tax breaks aimed at boosting incomes for low- and
middle-income earners.
In a contrast to Mr. Obama’s celebration of the economy’s
improvements, GOP lawmakers focused on the problems they said plagued the
country during the six years of his presidency and highlighted their own agenda
for his final two.
Republican lawmakers pointed to proposals to boost economic
growth for all income groups, including the middle class. Still, Republicans,
who are under pressure to show they can lead Congress effectively, expressed
optimism that they will be able to strike deals with Mr. Obama on trade and
cybersecurity legislation, as well as a more ambitious and more difficult
rewrite of the tax code. But Mr. Obama’s appeal for Congress to support an
expansion of trade with other countries has encountered continued Democratic
resistance. Meanwhile, Republicans applauded Mr. Obama’s focus on trade and
said his job was to get his party on board.
Republicans and the White House remained far apart in their
strategies for overhauling the tax code, with GOP lawmakers spurning Mr.
Obama’s plan as a big-government handout to less affluent households. The White
House proposal, released over the weekend, would raise taxes by $320 billion
over 10 years on high-income Americans to fund initiatives to benefit those at
lower income levels.
Mr. Obama delivered his pitch to Congress as the new GOP
majority is trying to assert its bolstered standing without allowing
confrontations with the White House to spiral into paralyzing standoffs.
Complicating Republican leaders’ efforts are GOP voters and lawmakers energized
by last fall’s midterm elections and eager to use their increased clout to pull
policy to the right.
Republican leaders spent part of last week’s joint
House-Senate GOP retreat in Hershey, Pa., reminding their rank-and-file of the
limits they face in the Senate, where the 54 Republican-held seats fall short
of the 60 votes most bills need to clear procedural hurdles. Still, the tension
between what can pass the two chambers, combined with a series of legislative
deadlines this year, may soak up GOP leaders’ energy and political capital,
even without them trying to reach potentially contentious deals with the White
House.
Tuesday night’s speech also offered potential GOP 2016
presidential candidates an opportunity to highlight their differences both with
the president and others in their party. Sen. Rand Paul (R., Ky.)
criticized Mr. Obama’s tax proposal and the Affordable Care Act he championed
and defended. But Mr. Paul also called for curbing federal spending in places
deemed sacrosanct by many Republicans, chiefly in the defense budget.
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