research and development. republicans on capitol hill say the president already got his additional revenue with last year s tax deal. congress agreed to let the bush administration s upper income tax cuts expire for families making more than $450,000 a year, and also to phase out personal exemptions and a phase down itemized deduction beings for family income above $300,000 a year. the payroll tax deduction expired. a spokesman for john boehner said in a written statement, quote, any tax loopholes we close should be used to lower rates for all taxpayers, so we can be more competitive and create more jobs. boehner s office scolded the president for once again missing the deadline for submitting a budget. brendon buck says it s the fourth time in five years the white house has missed the first monday in february deadline. jenna: wendell goler live at the white house. thank you. jon: secretary of state john kerry, have to get used to using that term, it s a little hard to get used to the
payroll tax deduction had a disproportionate impact. undoubtedly, there has been an irritation. what i want to touch on is how do you shift that incentive structure? you don t just say, you need to do better, mr. president. what does the incentive structure shift. part could be about the legacy concern. souls to the polls works because you can vote people in and out of office. what i am thinking about is another way around this, another way to get at this. if you look at the most successful, the stuff that was mind-blowing to me wasn t the president s election but all this stuff that happened at the state level. you are talking about california peeling back three strikes and getting a super majority. in a number of other states that happens. what can we do at the state level to begin to organize people both in cities and institutions to create the moral
will go up. the 2% payroll tax deduction we have not been paying out of the tax holidays kicks back in, so taxes go up for that as well. lots of big, important things come into play. how to resolve it? there s sweeping across the board cuts that were a part of the fight from trying to prevent government shutdown a year or so ago. there s a lot of complex, very important issues. republicans want to try to have some of the tax benefits and the tax rates that they prefer to continue. they want high earners to pay more and how do you determine the cuts. both parties say they need to happen, and they disappear where it should come from. it s a classic battle, and certainly the outside groups as far as the markets and business are looking at this. you have pressure coming with letters and so forth from all of the important sides trying to fix this. it s a tough fight. kelly o donnell, thank you so much for the latest there.
governor paul la page. and records smashed from the midwest to the east coast. and now a new record. this past year has been the warmest ever for america. so turn up the ac, grab a cold drunk. cnn newsroom begins right now. good morning to you. thank you so much for joining us. i m carol costello. right now, president obama is just about to head to the heartland. he is visiting the battle ground state of iowa and reaching out to middle class voters. that s who would most benefit from his plan to extend the bush era tax cuts. here s what s going to change. basically if we don t do anything, everybody s taxes go up at the end of this year. now, understand what i m proposing is 98% of america, 98% of american families, won t see their taxes go up according to my plaque. plan. the only folks who would see their taxes go up would be the top 2%, folks like me who don t need those tax breaks, are doing just fine without them. republicans will seize the spotlight first in
you re held highly in esteem by your constituents. what does it mean in practice for people in your area if it is ruled unconstitutional? i imagine it s going to have a devastating effect on people who were expegti ining to be covere this change in the law. this was going to extend coverage and the whole issue here is if everybody s going to be covered, all of us have to help pay. it s like social security where all of us have benefits from retirement, but we have to have a payroll tax deduction to fund it, but second, it s going to further political institution. in the bush v. gore decision elected bush by a 5-4 decision citizens united and now, in a fundamental legislation