Cantor accuses Obama, Democrats of supporting a 'tax hike'

12 hours ago CNN's Gregory Wallace (CNN) - House Majority Leader Eric Cantor hit President Barack Obama and Senate Democrats on Saturday for supporting a "tax hike" in the ongoing dispute over who should benefit from an extension of Bush-era tax breaks.

"House Republicans, joined by 19 Democrats, passed a bill to stop the looming tax hike that will hit all Americans next year," Cantor, a Republican from Virginia, said in his party's weekly address.

"On the other side of the Capitol, in the Senate, a Democrat-only plan to hike taxes passed. The president sided with Harry Reid and the Democrats, insisting that their plan to raise taxes was the answer for economic growth."

Cantor was referring to votes to extend the Bush-era tax cuts, which Republicans want to see extended on income of all levels.

But Democrats generally want to see it extended on income under a certain threshold. Obama has proposed a level of $250,000 and says tax on income above that level should be assessed under "the tax rates that existed under Bill Clinton."

The Virginia Republican said that the unemployed are "frustrated by the lack of results in Washington," and cited a study that found not extending the breaks "could result in the loss of over 700,000 jobs."

"But I am hopeful that with the passage of a bipartisan bill to stop the tax hike in the House and with unemployment still above 8% that President Obama will return to the position that he embraced less than two years ago and agree that now is not the time to be raising taxes on small business job-creators and the hardworking taxpayers of this country," Cantor said.

In remarks in Washington on Friday, Obama praised the Democratic-led Senate for passing a proposal that he supports.

"That means 98 percent of Americans won't see their income taxes go up next year," Obama said. "That means that 97 percent of small businesses wouldn't see their income taxes go up next year - not a single dime. That would be important. And that's why it's so disappointing that, so far, at least, House Republicans have refused to follow the Senate's example and do the same thing.

"We're saying nobody's income taxes go up on the first $250,000 of their income, so even somebody who makes more than $250,000 is still getting a tax break on their first $250,000, you understand?" he said.

But Cantor said the uncertainty of what tax rates will be has consequences for businesses.

"The threat of higher taxes and more red tape has our small business owners anxiously sitting on the sidelines rather than starting a new business and hiring another employee," he said. "They tell me they long for the moment when they can once again think about growing their businesses and hiring people."

Cantor also recognized the ongoing Olympic games, wishing "our athletes in London the very best."

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