President Obama Moves Ahead With Tax-The-Rich Plan, Which Could Hit New Yorkers Hard
NEW YORK (CBSNewYork) -- President Barack Obama proposed a new budget Monday that seeks to lower the deficit -- in part by increasing taxes on families with incomes of more than $250,000.
Obama's new budget got stuck in the door when it was delivered to the Republican-controlled house, foreshadowing what is likely to happen to his tax-the-rich spending plan in the notoriously tax-allergic lower House, reports CBS 2's Marcia Kramer.
"We don't need to be providing additional tax cuts for folks who are doing really, really, really well," the president said.
The president proposed eliminating tax deductions for the wealthy, a so-called "Warren Buffett" rule that requires those who make over $1 million to pay at least 30 percent, and ending the Bush era tax cuts for families making $250,000 or more per year.
"Do we want to keep these tax cuts for the wealthiest Americans?" Obama said.
The plan could dramatically affect people living in the metropolitan area, where wages are higher because the cost of living is higher. The plan, according to the Manhattan Institute, could mean:
* A family making $250,000 will pay an extra an extra $2,100 in taxes
* At the $300,000 level it's an extra $4,441
* And, if you make $500,000 you'll pay an extra $7,388
"It's certainly unfair to New York, but it's unfair to the entire country. Listen, the economy's weak. We know that the number one issue is to create jobs. The last thing we want to do is burden those who actually create the jobs," said Rep. Michael Grimm, R-Staten Island).
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"I think it's about time that people who are making more money pay more in taxes," added Asbury Park, N.J., resident Terry Reidy.
"I think a lot of the budget talk from the White House is anti-New York and this is just more of it," said Larry Unger of Great Neck.
The budget sets up a philosophical divide between Democrats and Republicans that probably won't be resolved until after the November elections, if then.
Democratic Sen. Charles Schumer said that one plus for New York is that we'll get an additional $420 million in Homeland Security aid.
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