Pelosi: One-Year Extension on Tax Cuts Will Add ‘Stability and Certainty’ to Economy

July 13, 2012 - 1:59 PM

Nancy Pelosi, Barack Obama

House Minority Leader Nancy Pelosi and President Barack Obama (AP Photo)

(CNSNews.com) – House Democratic Leader Nancy Pelosi (D-Calif.) praised President Obama’s one-year proposal to extend tax cuts that do not apply to individuals and businesses with taxable income over $250,000, saying the cuts would bring “stability and certainty” to the U.S. economy.

"Today as we have been doing day after day after day, we are calling upon the Republican Congress to pass the middle-income tax cuts. You know, this week President Obama laid out a step that we can take right now that will bring more stability and certainty to our economy and be fair to the middle class,” Pelosi said during a Capitol Hill press conference Thursday.

“Republicans must stop holding middle-income tax cuts hostage to their tax cuts for their very wealthy friends – big oil, special interests."

CNSNews.com asked Pelosi’s office if the Democratic leader will advocate making these tax cuts permanent to create more of the economic “stability and certainty” she discussed during the Thursday press conference.

However, a Pelosi spokesperson did not respond by the time this story was published.

On Monday, President Obama proposed extending the current, Bush-era tax rates for those earning less than $250,000 for another year, from the last day of December this year to the last day of December next year.

Under Obama's proposal, all those earning over $250,000, including many small business owners, would see their tax rates go up on Jan. 1, 2013. The income tax rates would go up for everyone else just 12 months later on Jan. 1, 2014.

Obama's plan calls for the top two marginal tax rates of 33 percent and 35 percent to increase to 36 percent and 39.6 percent, respectively, at the first of the year.