(FOX NEWS) President Obama is threatening to veto any legislation that extends all the tax cuts set to expire at the end of the year, as he presses Congress to extend those cuts only for families whose yearly income is less than $250,000 -- and raises taxes on everyone earning more.
The veto threat sets the early tone for what is expected to be a contentious battle between Democrats and Republicans through the rest of the year as they seek to avoid the so-called "taxmageddon" -- the sudden increase in taxes on all Americans that will occur if Congress doesn't vote to extend some or all of the Bush-era tax rates.
Obama will press his case Tuesday afternoon during an address at a community college in Iowa. Ahead of that speech, Republican National Committee Chairman Reince Priebus told Fox News that the president's proposal is a "sham" which, if enacted, would cut into already meager economic growth. He accused Obama of playing a "divisive rich versus poor game."
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