Obama announced Monday that he plans to extend the Bush-era tax cuts for Americans making under $250,000 a year, while having the wealthiest return to the tax rate of the Clinton administration.
Republicans agree that taxes should not increase for the middle-class, but strongly discourage increasing taxes on the upper-class for fear that any tax increase would disrupt the already fragile economy, NPR News said.
The fiscal disagreement has been going on for two years The New York Times said, and Obama remains firmly certain that taxing the wealthiest in America would decrease the federal budget deficits.
Obama also contends that a stronger middle-class, one that does not have high taxes, is where economic growth should stem from, rather than a "top down" approach, the New York Times said.
"We don't need more top down economics. We have tried that theory. We have seen what happened." Obama said. "We can't afford to go back to it," The New York Times reported.