Updated at 12:37 pm ET
There’s not much room over there, but President Obama found it.
President Obama today announced that he supports a one-year extension of the Bush tax cuts for those making under $250,000, a plan that puts him at odds with House Minority Leader Nancy Pelosi (D-Calif.) and Sen. Chuck Schumer (D-N.Y.), each of whom back extending the tax cuts for people making up to $1 million.
Obama’s plan will sock the country with a huge tax increase even as the economy continues to stagger.
It’s bad economics, but the Obama people have calculated that it’s good politics for a politician waging class warfare. Obama will be able to sock Republicans and Mitt Romney for backing tax cuts “for the rich” and “holding hostage” his populist proposal for a “middle class tax cut.”
As if to underline the political nature of the move, the president will hit the campaign trail Tuesday, traveling to Cedar Rapids, Iowa, to tout his proposal. There, he’ll visit the home of a family that would see its taxes rise if none of the Bush tax cuts were extended.