Making his position clear before a meeting next week with Republicans, US President Barack Obama said the US wanted to cut taxes for the middle class, but could not do so for the wealthy as well.
The economic recovery was on the right track and the tax cuts were a critical part of the plans, Obama said.
He told workers of an auto plant that if these cuts were not done, then people will spend less and the economy will resultantly grow less.
The Republicans on the other hand want the cuts to be made permanent for all the Americans.
Obama said the economic recovery was picking up, addressing a campaign style rally at an auto plant, saying his government helped rescue the auto industry.
But he warned that the economic recovery was still fragile and taking money from middle class would not help the cause.
He said the taxes for middle class are going to increase under the Congress acts. If nothing is done, the average family would see their taxes increased by 3,000 dollars.
The US output grew by 2.5 percent in the third quarter, up from an estimated value of 2 percent, mainly due to the spending and export earnings.
On Nov 30, President will meet with the Republicans and Democrats to talk about the tax cuts and other legislations, to be completed before new congress begins in January.
The taxes should be cut for the middle class and they should rise for families making more than 250,000 dollars annually, said Obama.
He said that the Republicans and the Democrats agreed on the thing that the taxes should be cut, but there was a difference in whether the tax cut should also be implemented for the wealthy people.
After a record initial bidding for GM last week, Obama used his visit to highlight the fact that his government’s multi billion dollar saved the auto industry.
Obama wants to persuade the public that the bailouts were in the best interest of all Americans, and he wants the Midwest, his stronghold, to sell that message.
He said that the auto industry was back on track and it was now moving in the right direction and all the three companies were now making profits.
