On September 8, local time, U.S. President Barack Obama delivered a speech in Cleveland, Ohio, announcing a series of major tax cut plans for the middle class and businesses, totaling approximately $200 billion.
Obama stated that from now until the end of next year, investments by businesses in new factories and equipment will be fully tax-exempt. The United States will no longer extend tax cuts for the wealthy—defined as individuals with an annual income of $200,000 or families with an annual income of over $250,000—but will instead make tax relief permanent for the middle class, which accounts for 98% of American households. However, these tax cut proposals put forward by Obama must be approved by Congress.
U.S. media pointed out that Obama has been launching a series of "combination punches" to stimulate the economy in recent days, not only aiming to provide new momentum for economic recovery but also focusing on the upcoming midterm elections, in hopes of securing support from the broad middle class and businesses for the Democratic Party.
In his speech, Obama specifically criticized the economic policies of the previous Republican administration, stating that the U.S. economy can no longer afford $700 billion in tax cuts like the previous administration, which primarily benefited the wealthy. He emphasized that the Republican policy of cutting taxes for the rich has caused American jobs to be outsourced overseas.
Regarding Obama's tax adjustment proposals, the Republican Party expressed firm opposition. House Republican Leader John Boehner stated in a national television interview on the 8th that Congress would freeze any tax-related policies for two years and would strive to cut government spending to 2008 levels. Iowa Republican Senator Chuck Grassley issued a statement saying that if the new proposal implies increasing other taxes, the chances of the new proposal passing in Congress are slim to none.
Currently, the process of U.S. economic recovery is painful and slow, with 8 million Americans having lost their jobs due to this financial crisis. The high unemployment rate has made the public increasingly dissatisfied with the Obama administration's economic policies, which has also become a pretext for the Republican Party to attack the government.
