Ten years ago, Congress passed broad income tax cuts. But in a cynical accounting trick designed to mask their long-term impact, they scheduled these cuts to expire next January. Now we are approaching that cliff, and millions of Americans are facing thousands of dollars in higher taxes on January 1.
That's why President Obama is fighting to extend the tax breaks for middle class Americans.
Under the President's plan, the tax cuts would be permanently extended on incomes up to $250,000, which includes 98 percent of American taxpayers. This is fair, just and crucial for our economy.
Middle class Americans saw their incomes shrink during the last decade, and have borne the brunt of the recession. They need the relief, and America needs a strong, thriving middle class. Because middle class families are most likely to spend this money quickly, these tax cuts give our economy a much needed shot in the arm.
Seems like a no-brainer, right? Not to the Republican leaders in Congress.
They're holding these tax cuts for the middle class hostage, demanding that we also lift the cap and extend the breaks to millionaires and billionaires.
Austan Goolsbee, Chair of the Council of Economic Advisors, explains what’s going on in this video:
The Congressional Republican tax cut plan would add an additional $700 billion to the deficit over the next ten years and give America’s wealthiest people an average tax break of $100,000. To top it all off -- the nonpartisan Congressional Budget Office has found that giving a huge tax break to the wealthiest Americans is one of the least effective ways to stimulate our economy.
Adding hundreds of billions of dollars to the deficit while doing very little to grow our economy, put people back to work or strengthen America’s middle class is exactly the kind of economic policy that got us into this mess in the first place.
We simply cannot afford to go back to their failed policies. It’s time for Congressional Republicans to stop playing politics with tax cuts for the middle class.
Senior Advisor to the President
Can somebody with a $250,000 salary really be considered 'Middle Class', and surely if the tax break would extend to any salary up to this amount, it also incorporates the lower classes/those that work on the poverty line.
I would suggest that a $250,000 salary would be enough to classify you as 'very wealthy'. That is $685 each and every calendar day afterall.
I agree. Anyone making in the low 6 figures, as an individual, is not middle class, in my opinion.
I'd love to earn that much and to pay more taxes.
"Under the President's plan, the tax cuts would be permanently extended on incomes up to $250,000, which includes 98 percent of American taxpayers. This is fair, just and crucial for our economy."
Then why did the democrat controlled congress break before they could extend those tax cuts?
Can't have a vote to extend anything if they are not in session.
Actually, they can extend those tax cuts without Congress, but they have said that they will see to this when they get back from their break. I agree that they should make the changes and quit trying to have it be a bipartisan effort, that ship sank a long time ago, Republicans have taken their toys and gone home. They don't want to play fair or right with anyone. It's their way or hit the highway. To hear them say it, Obama is raising taxes by allowing the Rich tax cuts to expire. As always seeing the glass half empty when it hurts their wealthy supporters. It' NOT raising taxes. As the Democrats have said, if you can come up with a way to PAY for the tax cuts, by all means, let us hear it. WOW, THEY DON'T, SO WE KEEP HEARING THE SAME RHETORIC- HIGHER TAXES, HIGHER TAXES, keep repeating it and people like you will continue to believe it.
"Actually, they can extend those tax cuts without Congress"
Then do it and quit blaming the party with no control.
Is that even possible for a democrat to do?
Whether you understand or not, the hold up is from the Republican side. They are being idiots for the sake of political gain.
I know you won't hear that on Fox News (yeah, you never listen to it, we've all heard that before - NONE of you conservatives ever listen to Fox) but it's what is actually happening.
Of course you'll insist that it isn't. Because that's what you do, right? Ignore reality and defend the wealthy, just like the Republicans who are stalling this.
So the Republicans adjourned Congress?
The minority party adjourned Congress?
Got any other fairy tales?
I would expect nothing less from you, Jim.
In a way, I hope that your views take hold this November. I mean that, because the conservative philosophy apparently needs one more chance to drive us into poverty and ignorance. Maybe then, after seeing the horrible aftermath, will people like you finally understand how wrong you have been.
Too bad so many people will have to have their lives destroyed to learn that lesson, but if that's what it takes to get rid of this foolishness, then that's what it takes. Of course it may destroy us entirely - won't that be a wonderful tale to tell in your old age, Jim?
Just because they are called Democrats doesn't mean that they agree with one another.....
"Democrat" is not synonymous with "liberal" either.....
To infer otherwise is silly...
There are a few Dems who are as conservative, if not more so, than their Republican "opponents"... This is why, though numerically they have had the numbers to pass a great many things, Democratic leadership has found itself frustrated over and over.....
Higher taxes everywhere where governments are completely run by banking controls (which is everywhere except 4 countries!)
These taxes are OUR 'promise-to-pay' to the bankers (by our governments) every last cent (and penny or euro) we earn through our 'money-of-exchange' (our blood,sweat,time,tears and talent money) so that they can have their interest-payments met.
It's a shocking scam set up about 80 years ago and now coming to an end or very shortly!
The'debt-economy' the bankers engineered (along with colluding politicians on the make!) is just about ready to collapse but why should they care? None of them will be in ANY food-queue anywhere. They will retire to their walled, secure palaces and count the trillions (yes trillions) of dollars they have literally stolen from the people over a hundred years.
We shouldn't have taken our eye off the ball and just allowed THEM to 'get on with it' because they have - and now it's going to be US who pay the price for THEIR shocking, mendacious and deliberate deceptions. Taxes do NOT go towards better services or the State - they go (and have for 50 years) to the bankers! Period!
We have only three choices
1. Raise taxes.
2. Cut services.
3. A combination of (1) and (2)
A combination of both is the only option in my view, its time people starting working together to solve the economic problem of the United States (and Europe) rather than this 'me me' attitude.
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