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Sat Dec 8, 2012, 07:03 PM

The tax cuts for the rich expire in 22 days. [View all]

Last edited Sun Dec 9, 2012, 08:34 AM - Edit history (1)

WEEKLY ADDRESS: Congress Must Extend the Middle Class Tax Cuts

Hello, everybody. Over the last few weeks, theres been a lot of talk about deadlines were facing on jobs and taxes and investments. But with so much noise and so many opinions flying around, it can be easy to lose sight of what this debate is really about. Its not about which political party comes out on top, or who wins or loses in Washington. Its about making smart decisions that will have a real impact on your lives and the lives of Americans all across the country.

Right now, middle-class tax cuts are set to expire at the end of the year. Time is running out. And there are two things that can happen.

First, if Congress does nothing, every family in America will see their income taxes automatically go up on January 1st. A typical middle-class family of four would get a $2,200 tax hike. That would be bad for families, it would be bad for businesses, and it would drag down our entire economy.

Now, Congress can avoid all this by passing a law that prevents a tax hike on the first $250,000 of everybodys income. That means 98 percent of Americans and 97 percent of small businesses wouldnt see their income taxes go up by a single dime. Even the wealthiest Americans would get a tax cut on the first $250,000 of their income. And families everywhere would enjoy some peace of mind.

The Senate has already done their part. Now were just waiting for Republicans in the House to do the same thing. But so far, theyve put forward an unbalanced plan that actually lowers rates for the wealthiest Americans. If we want to protect the middle class, then the math just doesnt work.

We can and should do more than just extend middle class tax cuts. I stand ready to work with Republicans on a plan that spurs economic growth, creates jobs and reduces our deficit a plan that gives both sides some of what they want. Im willing to find ways to bring down the cost of health care without hurting seniors and other Americans who depend on it. And Im willing to make more entitlement spending cuts on top of the $1 trillion dollars in cuts I signed into law last year.

But if were serious about reducing our deficit while still investing in things like education and research that are important to growing our economy and if were serious about protecting middle-class families then were also going to have to ask the wealthiest Americans to pay higher tax rates. Thats one principle I wont compromise on

After all, this was a central question in the election. A clear majority of Americans Democrats, Republicans and Independents agreed with a balanced approach that asks something from everyone, but a little more from those who can most afford it. Its the only way to put our economy on a sustainable path without asking even more from the middle class. And its the only kind of plan Im willing to sign.

Everyone agrees we need to bring down our deficit and strengthen our economy for the long-term. The question is whether we can do it in a responsible way that allows us to keep investing in the things that have always made America strong. Im convinced we can. And if both sides are willing to compromise, I believe we can give businesses and families a sense of security going into the New Year.

Thanks, and have a great weekend.

http://www.whitehouse.gov/the-press-office/2012/12/08/weekly-address-congress-must-extend-middle-class-tax-cuts


Since the President mentioned that the Senate passed a bill, let's look at Boehner's three choices:

1) Accept the President's proposal with "dividends to be taxed as ordinary income" and the "estate tax to be levied at 45 percent on inheritances over $3.5 million."

2) Pass the Senate bill, "which currently taxes inheritances over $5 million at 35 percent," but excludes Obama's dividend proposal.

3) Go over the cliff when "the estate tax is scheduled to rise to 55 percent beginning with inheritances exceeding $1 million."

In each case, the tax cuts for the rich end.

G.O.P. Balks at White House Plan on Fiscal Crisis
http://www.nytimes.com/2012/11/30/us/politics/fiscal-talks-in-congress-seem-to-reach-impasse.html

Krugman: What Defines A Serious Deficit Proposal?
http://www.democraticunderground.com/10021914963

John Boehner nervously eyes the clock
http://www.democraticunderground.com/10021941791

Reid: We Agree On How To Resolve 97-98 Percent Of Fiscal Cliff

Senate Majority Leader Harry Reid (D-NV) offered his take on the fiscal cliff in a floor speech Tuesday, calling on the House to take up the Senate-passed bill to avert tax hikes on middle incomes.

An excerpt from Reid's speech:

"In fact, we could avert the fiscal cliff for 98 percent of American families and 97 percent of small businesses today. The House must only consider the Senate-passed bill freezing tax rates for those making less than $250,000 a year.

"This Congress is but one vote away from avoiding the fiscal cliff for middle class families and small businesses.

http://livewire.talkingpointsmemo.com/entry/reid-we-agree-on-how-to-resolve-97


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