"I've said before that I felt that the middle class tax cuts were being held hostage to the high end tax cuts. I think it's tempting not to negotiate with the hostage takers, unless the hostage gets harmed. Then people will question the wisdom of that strategy." Obama said at a press conference today, referring to Republicans' refusal to extend tax cuts for Americans unless it included all income brackets. "In this case, the hostage was the American people and I was not willing to see them get harmed."
As part of the deal, the tax cuts and several other tax credits would be extended for two years, setting the stage for another political fight during the next presidential election.
The president argued that tax cuts for the lower and middle class are crucial for job growth and boosting the economy in the short term, an assessment with which most economists agree.
He added that he doesn't like extending tax cuts for the wealthy, but had to find a compromise to make sure middle-class Americans weren't slapped with tax hikes come 2011.
The White House did get some concessions, including an extension of several tax credits and unemployment benefits for another 13 months that's expected to help about 9 million Americans.
"I have not been able to budge them and I don't think there's any suggestion -- anybody is this room thinks realistically -- that we can budge them right now and in the meantime there are a whole bunch of people being hurt and the economy would be damaged," a staunch Obama said.
"On the Republican side, this is their holy grail. These tax cuts for the wealthy. This seems to be their central economic doctrine," the president said. "And so unless we had 60 votes in the Senate at any given time, it would be very hard for us to move this forward. I have said that I would've liked to see a vote before the election. I thought this was a strong position for us to take into the election."
The hastily-arranged press conference was the president's first since Nov. 3, after Democrats lost the House in the midterm election. Facing a revolt from Capitol Hill, Obama chided his fellow Democrats for not seeing the benefits of his deal.
The president said the criticism reminded him of when liberals attacked the health care bill for not including a publicly funded insurance option to compete with private insurers, for which there were not enough votes in the Senate.
"I know there are some who would've preferred a protracted political fight even if it had meant higher taxes for all Americans, even if it had meant no unemployment benefits for those who are desperately looking for work," the president said. "And I understand the desire for a fight. I am sympathetic to that."
"When they expire in two years, I will fight to end them," he added. "We're going to keep on having this debate. We're going to keep on having this battle, but in the meantime I'm not here to play games with the American people or the health of our economy."
Vice President Joe Biden was on Capitol Hill today to lobby Democrats to support the White House's tax cut deal that has taken much heat from liberals.
Liberal Democrats say the White House should've put up a bigger fight instead of reneging on his campaign promise.