Taxes and Politics

Friday, June 8, 2012 - 8:37am

The President outlines his case to keep interest rates on student loans from rising.

Washington has yet to deal with the Bush Tax Cuts, expiring at the end of the year, which could raise taxes on families and businesses already struggling in a tough economy.

Ben Bernake is hopeful we'll see moderate growth this year, but the Federal Reserve chair tells lawmakers, if the U.S. is approaching fiscal cliff, The Fed can help, but only congress can prevent a freefall. "I'd be much more comfortable if, in fact, Congress would take some of this burden from us,” said the Federal Reserve Chairman.

Part of that cliff, student loan rates -- set to double July 1st if Congress doesn't act. "Don't be surprised. Two weeks from graduation you look up, and, whap. You just got hit upside the head," said President Barack Obama.

President Obama called Congress stubborn. Republicans criticized him for courting young voters in Las Vegas, instead of staying in Washington to fix the student loan problem. "He should be here working with us to ensure that they won't double," said House Speaker John Boehner (R) Ohio.

"There is nothing fair about a government that favors political connections over honest competition," said Mitt Romney, (R) Presidential Candidate.

Meantime, Former President Bill Clinton is apologizing for appearing to side with Republicans on extending tax cuts for the rich. He says he thought action was required before the election. "Once I realized that nothing had to be done until the first of the year, I supported (Obama's) position," said the Former President.

Backtracking, in support of a President hammered by an economy that's made a turn for the worse.

Tracie Potts, NBC News.

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