Rahm Emanuel: Middle-class tax-cut near

by Mark Silva and updated

Rep. Rahm Emanuel, President-elect Barack Obama's designated chief of staff, asked how his reputation for rough, partisan political warfare will square with his role in the new president's White House, promised that Obama will set a bipartisan "tone.''

Obama also is intent on delivering tax relief for the middle-class, Emanuel said today, while refusing to be pinned down on a question about delaying any tax increase for the wealthiest Americans in the midst of an economic crisis.

"President-elect Obama is very clear... that we have to govern in a bipartisan fashion,'' Emanuel (D-Ill.) said on ABC News' This Week With George Stephanopoulos "Ge has always said that we have to be bipartisan. The challenges are big enough that we have to go to members of both parties as well as independents... That is the tone. He has set it for us.''

"The challenges... whether on the national security front, or the economic, are looming large, and they are going to require leaders of both parties as well as independents,'' Emanuel said. "When the campaign is over, the work of solving the problems of the country begins.''

"President-elect Obama's economic plan was developed on the premise that the middle class is working harder, earning less and paying more,'' Emanuel said in another interview on CBS News' Face the Nation this morning. "The basic strategy was, we need to focus on the economic stresses on the middle class.''

Obama will push for a $1,000 tax cut, Emanuel said .

"President-elect Obama's economic plan was developed on the premise that the middle class is working harder, earning less and paying more,'' Emanuel said. "The basic strategy was, we need to focus on the economic stresses on the middle class.''

Asked about congressional Democratic leaders pushing for a new federal bailout for the auto industry, the new chief remained noncommittal on both shows. He also refused to commit to a delay in tax increases for the wealthy on both shows.:

"First, the auto industry is an essential part of our economy,'' said Emanuel, on ABC's This Week, noting that $25 billion already has been allocated to help auto-makers retool their factories. "First, they should look at accelerating the $25 billion that was authorized for retooling...

"President-elect Obama has asked his economic team'' to look at whatever courses might help, he said, refraining from committing to the new money that House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid are seeking. "He has been very clear that they (the auto-makers) are part of any sustained economic activity in this country.''

When the newest unemployment numbers came out, they showed 10 million people out of work. "The American people right now need help economically,'' Emanuel said. "What you have to deal with is what's immediate here... That's what should be the focus now... There is an economic package in front of Congress.... '' and that should be enacted quickly.

"There is no doubt that a larger economic recovery act... must do two things, one, get people working rebuilding our roads, our schools, our basic infrastructure... Second, should be a tax rebate for the middle class,'' he said. "You cannot have a strong, resilient economy that does not have a strong middle class...'' And the tax code should be "focused,'' he said, "on a strong middle class going forward.''

Is Obama willing to delay the tax increases for wealthier Americans that he proposes until the economy improves?

Obama's plan is "a net tax reduction,'' Emanuel said. "The core economic part of his strategy is the middle class, that is the basis of it,'' he said, refusing to be pinned down on the question of delaying any tax increases for the wealthiest taxpayers.

Host Stephanopoulos pressed twice and did not get an answer to that question from Emanuel. "I think we're going to put off that question for now,'' the host finally conceded.

What about Sen. Joe Lieberman? Should the former Democrat who campaigned for Republican John McCain lose any place in the Senate's Democratic leadership?

"As the chief of staff for the new president, he's going to be focused on the basic problems facing the country,'' said Emanuel, who is leaving one of the House's highest leadership positions, party caucus chairman, to become the new president's chief of staff. "What happens with the House and Senate chairmanships is their business...

What about Obama adviser Valerie Jarrett -- is the report of Chicago's CLTV this morning that she has Obama's backing for appointment to his opening Senate seat true?

"I haven't seen that story,'' Emanuel said. "She is a very, very dear friend of the president-elect.... And a valuable ally of his.''

On Face the Nation, Emanuel also was asked for a timetable of his first big appointments.

Obama has met with his economic advisers and is "working tirelessly... He wants us to move with deliberate haste, emphasis on deliberate as well as equal emphasis on haste.... In past times, there hasn't been announcements until December,'' he noted.

Will Obama make announcements before December? "As the chief of staff, I am not going to get in front of the president... He has names in front of him. He is reviewing those names... When he's ready, you'll hear about it.''

What will Obama's role in the lame-duck Congress on its economic plan be? Will he be on the floor of the Senate, as the junior senator from Illinois, or setting up his administration?

"He's going to be here in Chicago setting up his economic team,'' Emanuel said.

Does that mean he will leave the lame-duck session to the leaders? "He has repeated, A, you have Washington ready to work... We have one president at a time. He is going, to, as he did on Friday, encourage Washington to move... And he will also, because he doesn't waste a single day, get his team in place.''

On the auto industry: "As it relates to the auto industry... they are an essential part of our economy and our industrial base... Washington needs to look at fast-forwarding the $25 billion that has been provided for retooling the industry for a more fuel-efficient auto fleet.''

Will Obama push for permanent tax cuts for the middle class, and would he consider postponing tax increases on the upper income?

"President-elect Obama's economic plan was developed on the premise that the middle class is working harder, earning less and paying more,'' Emanuel said. "The basic strategy was, we need to focus on the economic stresses on the middle class.''

Obama will push for a $1,000 middle class tax cut, he said.

"Because of the scope of the economic crisis,'' he said, the Obama administration must deal with other issues such as health care reform and other factors bearing on the economy.

How will Obama measure his agenda?

"Everybody, Democratic and Republican economist... agrees we need a short-term economic recovery act,'' he said, and that includes new employment in public works as well as tax relief for the middle class.

"You have an immediate problem as well as a long-term strategy for sustained economic growth,'' Emanuel said. "The crisis we have today, he said, is an opportunity to finally deal with what Washington for years, has kicked down the road.'' And that includes the nation's energy needs as well as health care needs. "These are crises you can no longer afford to kick down the can.''