19 April 2024

Republicans Reject Obama’s Economic Proposals

#
Share This Story

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.

Click here to access the full article on The Wall Street Journal. 

Join Our Online Community
Be part of the USDJ movement to grow the middle class. Connect with others, track relevant news and blogs, and make a difference!
US Daily Journal Social News
Follow Us