With a group of Americans in support standing with him, taking his case to the American people on Wednesday President Barack Obama once again called on Republicans in the House of Representatives to pass the middle-class tax cut extension on the first $250,000 of income for all Americans in order to keep the country from falling into recession in 2013.
“The place where we already have, in theory at least, complete agreement right now is on middle-class taxes. And as I’ve said before, we’ve got two choices.” the President stated in his short yet focused remarks. He then added, “If Congress does nothing, every family in America will see their taxes automatically go up at the beginning of next year. Starting January 1st, every family in America will see their taxes go up.”
While the nation needs to have a balanced approach to resolving the deficit reduction issue, President Obama made clear that both sides should go ahead and pass legislation in which there is consensus in order to grow economic stability for the good of the country.
Obama stated, “So if both parties agree we should not raise taxes on middle-class families, let’s begin our work with where we agree. The Senate has already passed a bill that keeps income taxes from going up on middle-class families. Democrats in the House are ready to vote for that same bill today.” He then challenged, “If we can get a few House Republicans to agree as well, I’ll sign this bill as soon as Congress sends it my way.
“I’ve got to repeat, I’ve got a pen. I’m ready to sign it.”
Passage of the extension would mean that 98% of Americans and 97% of small businesses would not see their taxes increase on Jan. 1, giving an average middle-class family of four an average tax savings of approximately $2,200 over the course of the 2013 year. The middle-class tax cut applies to the first $250,000 of a person’s income, even if a person’s total wealth exceeds this amount; all Americans, even those who are wealthy, will receive the same tax break.
Meanwhile earlier on Tuesday Republican Speaker of the House John Boehner reiterated his stance that he would not bring the middle-class tax cut extension bill to a floor vote without consideration of additional bonus tax cut extensions for income above the $250,000 amount. This is despite the fact than an extension of the higher tier tax cuts would make it significantly harder to reduce the deficit and would have little impact in growing GDP.
The bill already passed in the United States Senate earlier in the year; the only holdup to the bill being presented to President Obama for his signature and the bill’s enactment is a simple majority vote in the U.S. House of Representatives.