Saturday’s 411 From Barack’s House: Middle Class Tax Cuts…Git ‘Er Done Congress!


By Jueseppi B.

 

 

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U.S. President Barack Obama, right, speaks while Timothy F. Geithner, U.S. treasury secretary, left, House Speaker John Boehner, a Republican from Ohio, middle, listen during a meeting in the Roosevelt Room of the White House in Washington, D.C., Nov. 16, 2012. (Bloomberg via Getty Images)

 

 

Weekly Address: Congress Must Extend the Middle Class Tax Cuts

 

President Obama urges Congress to extend the middle class income tax cuts for 98 percent of Americans and 97 percent of small businesses without delay, making it clear that a balanced approach to deficit reduction means that Republicans in Congress must agree to ask the wealthiest Americans to pay higher tax rates.

 

 

 

President Barack Obama tapes the Weekly Address in the Map Room of the White House, Dec. 7, 2012. (Official White House Photo by Lawrence Jackson)

 

 

Tiffany Shared What $2,000 Meant to Her … and the President Stopped by to Talk About It

 

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President Barack Obama meets with Tiffany and Richard Santana and Tiffany’s parents, Velma and Jimmie Massenburg for a roundtable to discuss the importance of extending the middle class tax cuts and taking a balanced approach to tackling our fiscal challenges, at the Santana’s home in Falls Church, Virginia, Dec. 6, 2012. (Official White House Photo by Lawrence Jackson)

 

 

Today President Obama visited one of the 114 million American families who would see their taxes go up next year if Congress fails to extend the middle-class tax cuts.

 

 

Tiffany, a high school teacher who lives in Northern Virginia, is also one of the thousands of people who wrote in to the White House to share what it would mean to her family if their income taxes went up next year.

 

Although a typical middle-class family could pay about $2,000 more in taxes in 2013 if the tax cuts aren’t extended, the President explained why Tiffany’s family would likely pay more.

Her husband, Richard, works at a Toyota dealership. They actually live with Tiffany’s parents, both of whom are still working. And so what Tiffany pointed out was that an increase of $2,000 or so for her and her husband in this household would actually mean $4,000 that was lost. And a couple of thousand dollars means a couple months’ rent for this family.

 

 

“For them to be burdened unnecessarily because Democrats and Republicans aren’t coming together to solve this problem gives you a sense of the costs involved in very personal terms,” President Obama said.

So the message that I got from Tiffany and the message that I think we all want to send to members of Congress is this is a solvable problem. The Senate has already passed a bill that would make sure that middle-class taxes do not go up next year by a single dime. Ninety-eight percent of Americans whose incomes are $250,000 a year or less would not see any increases. Ninety-seven percent of small businesses would not see any increases in their income taxes. And even folks who make more than $250,000 would still have a tax break for their incomes up to $250,000. So 100 percent of Americans actually would be keeping a portion of their tax cuts, and 98 percent of them would not be seeing any increase in their income tax.

That’s the right thing to do for our economy. It’s the right thing to do for families like Tiffany’s and Richard’s. And it’s very important that we get this done now, that we don’t wait.

 

 

Tiffany: What $2,000 Means to My Family

Published on Dec 6, 2012

Tiffany, who lives in Northern Virginia with her husband, son and parents, talks about what paying $2,000 more in taxes next year would mean to her family. Tell us your story athttp://www.whitehouse.gov/My2k

 

 

 

 

 

Statements and Releases

 

December 07, 2012

Statement by the Press Secretary on H.R. 915, H.R. 6063, H.R. 6634

 

 

December 07, 2012

Statement by the Press Secretary on the Presidential Determination Pursuant to Section 1245(d)(4)(B) and (C) of the National Defense Authorization Act for Fiscal Year 2012

 

 

December 07, 2012

Statement by the President on Hanukkah

 

 

The Week Ahead:

 

Saturday: President Obama has no public events scheduled.

 

Sunday: The First Family, except Bo, will attend Christmas in Washington event at the National Building Museum.

 

Monday: President Obama will travel to Redford, Michigan for an event at the Daimler Detroit Diesel plant.

 

Thursday: President Obama will host a Hanukkah Holiday celebration reception at the White House.

 

 

 

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Saturday’s Potpourri: A Lot Of A Little


By Jueseppi B.

 

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President Obama Lights the National Christmas Tree

 

Published on Dec 7, 2012

President Obama speaks before the lighting of the National Christmas Tree on the Ellipse. December 6, 2012.

 

 

 

 

 

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Republican Senator Mitch McConnell Filibusters His Own Bill!!

 

 

 

 

 

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Star-Trek Star George Takei To Obama: ‘Tax Me More!’

 

 

 

 

 

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Why Taking Tax Rates Off the Table Threatens Non-Profits and Charitable Giving

 

By Aviva Aron-Dine and Jonathan Greenblatt December 07, 2012 The White House Blog

 

Aviva Aron-Dine is a Special Assistant to the President for Economic Policy. Jonathan Greenblatt is Special Assistant to the President and Director of the White House Office of Social Innovation and Civic Participation.

 

Right now, America faces a series of critical fiscal choices that will affect the economy for years to come. One of the most critical steps we can take is to reduce the deficit in a balanced way in order to lay the foundation for long-term middle-class job growth. But we need to do that in a way that’s consistent with our values.

 

As part of his balanced approach to reduce the deficit by $4 trillion, President Obama proposes to raise $1.6 trillion in new revenue over 10 years for deficit reduction, including $1 trillion from the expiration of the Bush high-income and estate tax cuts. The President’s plan asks the wealthy to pay their fair share by raising tax rates for the wealthiest 2% to the level they were at under President Clinton—39.6%—which was a time when we created 23 million new jobs.  It also prevents an income tax increase for 98% of Americans and 97% of small businesses.

 

Some have suggested that, rather than raising tax rates for the most fortunate, policymakers should make up the revenue by cutting high-income tax benefits – in particular, by imposing a dollar cap on itemized deductions, including charitable contributions.

 

But what is clear is that proposals that take tax rates off the table would threaten donations to universities, non-profit hospitals, social services providers, arts and cultural institutions and other nonprofit organizations.  This is because – to make the math work – these proposals rely on hundreds of billions of dollars of revenue that would result from drastically cutting or eliminating the charitable deduction as we now know it.

 

Currently, the tax code encourages gifts to charity by allowing taxpayers to claim itemized deductions for charitable giving. But –as a new report by the National Economic Council (NEC) shows, the most prominent dollar cap proposals would effectively eliminate the charitable deduction for up to 13 million households and for as much as 60 percent of currently deductible giving.

 

Using Congressional Budget Office assumptions, the NEC estimates that a $50,000 cap would reduce charitable giving by about $150 billion over 10 years, while a $25,000 cap would reduce giving by about $200 billion. Even a $25,000 cap that applied only to high-income households would reduce giving by at least $10 billion per year. As the report discusses, a cap could impact nonprofit organizations in every sector and in every state.

 

The reality of the math means that taking tax rate increases, for the most fortunate, off the table forces a choice between virtually eliminating the charitable deduction for high-income households; raising taxes on middle-class families; or raising too little revenue for deficit reduction and forcing deep cuts to investments in research, education, and infrastructure or to other federal programs important to middle-class or struggling families.

 

This wholly unnecessary trade-off can be avoided by taking the President’s balanced approach. The President would raise $1 trillion by letting the Bush high-income and estate tax cuts expire. He would then raise additional revenue by limiting all high-income tax benefits to 28 percent.

 

Under the President’s proposal, every family that currently benefits from the charitable deduction would continue to receive a significant tax incentive for charitable giving. High-income households would receive the same incentive as households with incomes in the range of $200,000, the same incentive they received under President’s Reagan’s tax reform, and a larger incentive than they would get under Republican proposals to reduce the top tax rate to 25 percent.

 

Solving the Nation’s deficit and debt challenges will require that the highest-income households pay more. But under a more balanced approach that includes an increase in tax rates, this can be achieved without imposing major collateral damage on charitable giving and jeopardizing the vital work of those nonprofit organizations that serve the needs of millions of Americans.

 

Related Topics: Middle-Class Tax CutsEconomy

 

 

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