In Pa. today, Obama to urge immediate extension of middle-class tax cuts
President Obama to urge immediate renewal of expiring tax cuts on those making less than $250,000 year, warning of potential hit to consumer spending over holidays due to uncerainty.
In Pa. today, Obama to urge immediate extension of middle-class tax cuts
Thomas Fitzgerald, Inquirer Politics Writer
President Obama will argue Friday that immediate renewal of lower Bush-era tax rates for the middle-class could prevent a “hit to consumer spending” during the holidays, as he visits a Montgomery County toy factory, according to a White House official.
The campaign-style stop is part of a stepped-up effort designed to pressure Republicans, who control the House and have blocking power in the Senate, to bend to the president’s will in negotiations over a budget deal to avoid the fiscal cliff. If the two sides don’t agree on a deficit-reduction plan by Dec. 31, the income tax cuts of 2001 and 2003 will expire and automatic budget cuts will begin.
That’s the cliff, which experts say would have a recessionary effect on the economy.
Obama wants to allow taxes to go up on those making more than $250,000 a year while renewing the lower rates for those under that threshold. Republicans want to keep all the rates from increasing, arguing a fragile economic recovery is no time to raise the tax burden.
By focusing relentlessly on taxes, Obama has thrown the GOP on the defensive. But Republicans are pointing out that the president has yet to detail any real spending cuts to round out what he has called his “balanced” approach to deficit reduction.
In particular, they say that in exchange for any concessions on taxes, Obama must support restraints on the cost of Medicare, Social Security and Medicaid, the federal government’s biggest and fastest-growing programs.
“The Democrats have yet to get serious about real spending cuts,” House Speaker John Boehner said Thursday. “No substantive progress has been made…over the last two weeks.”
Boehner was speaking after the White House presented a proposal to him that relies on $1.6 trillion in tax revenue over 10 years, few details on spending cuts – and millions in more stimulus spending.
The president is visiting the Rodon Group in Hatfield, Pa. It is the sole U.S. manufacturer of K’Nex brand construction toys and also makes Tinkertoy products and Lincoln Logs. Double message bonus for the White House: Rodon brought 95 percent of its packaging and manufacturing back from China over the past few years, leading to a 25 percent increase in the size of its workforce, to 150.
“As we move into the holiday season, Democrats and Republicans should come together to renew middle class tax cuts so families have more certainty at this critical time for our economy,” said a White House official previewing the visit.
Expiration of the tax cuts for those making under $250,000 would increase next year’s tax bill on a median-income Pennsylvania family of four by $2,200, the administration calculates. (Median income in the state is $80,400.)
Folks - he already raised taxes on the "middle class" with Obamacare when he limited the amount we can save in healtchare flexible spending accounts. I vote for going off the cliff and get the civil war over with now rather than making my kids have to fight it. And another day with no update on Benghazi. Try to find an article that mentions the Benghazi "consulate" before 9/11/12. Won't find one because it wasn't a consulate. Rather it was the hub for the missile-running operation Obama was running for the Muslim Brotherhood in their attempt to continue the Arab Spring in Syria. The "fiscal cliff" is a great distraction.....— phillycaster- Did the dems ever have an idea to cure this countries woes that didn't start with the words "increase taxes"?
Yeah, increase taxes on someone else, just not on me. That's what obozo has spawned. I hope they do though because it won't work and then all they'll have is "it's Bush's fault"...ridiculous.
National debt on Bush's last day as President was $10.626 trillion. After a tad more than 3 years of obozo it was $15.566 trillion. Them's the facts Jack. It's all Bush's fault though.— tpizza - Mr. Wok, "the full faith and credit of the United States." Aren't Moody's, Fitch and S & P all rattling sabers about further credit downgrades? Doesn't that mean the cost of money will go up? Doesn't the rising cost of money drive down the value of fixed rate bonds? Doesn't the reduced value of bonds backed by "the full faith and credit of the United States" thus reduce the amount of time that the bonds are supposed to fund these entitlements? I know, I know! Too simple for a deep thinker like you to contemplate. "Please Mr. Obama, may I have more?" --apologies to Charles Dickens.
— OrvalEugeneFaubus - "Share the wealth"...the Socialist president is on cue.— dogman5
- Maybe Obama can ask Jay Z and Beyonce, and the rest of his Hollywood friends, to give up half of their wealth for America.— LouDiamondPhillipsheadScrewdriver
- Let's cut the nonsense and get to what this is really about: the current Republican Party wants to destroy Social Security and Medicare.
Medicare is government insurance. What's more "socialist" than that in the eyes of Ayn Rand Tea Partiers. They want it gone and they want seniors to loose their savings on medical care.
Social Security is government pensions. Again, heresy in the eyes of Republicans.
Yet, these programs are popular because they are hugely effective in improving people's lives (Republicans also hate that. Govt. is bad so if it improves people's lives we must stop that.
So they can't just say "destroy medicare". They have to say "it's too expensive to have Medicare". And they will try to cut it and cut it until it's nothing. Same with Soc. Security. Be honest right wingers: this is your ideology. Everyone fends for themselves. Liberty! Rich people are godly!
They are bent on destroying the middle class and returning to the days when Grandma had to live with her extended family because she was poor in her old age.
That's freedom!— wokmaster 
n— Professor1982- LOL smartest thing you've said in a long time, "professor".
— wokmaster - funny how we haven't heard from taxmancometh in awile. Sour grapes? Mom took it's computer away? — teddybear415
- Ah Hatfield, the armpit of Pennsyltucky. Stop relying on union leadership and grow a pair. Median income in the state is $80,400? I made that as of June! Enjoy your mediocre lives. Philadelphia the City of the Fake Tough!— Phillies1986
- Nice counter wok, instead of arguing the profs points you resort to insults. Are his points false? Typical dem BS, when you can't argue the facts attack the messenger.
What does Europe have to do with us? Really? Wow.
Mr. president [small p intended] PLEEEEEEEZ raise the taxes on the rich. Can't wait till it fails and I gotta see where he goes next for money. My guess is that $200-$250G threshold will suddenly get lowered. Hey how 'bout the 54% that pay NOTHING kick in 10 bucks apiece? They voted for this chump, let them pay for it.— tpizza - Wrong. I laugh at a guy who calls himself a professor but constantly types messages like "m" and "b". I mean, what kind of an imbecile does that day after day, post after post?
Actually, Obama received 51% of the vote, so your numbers don't add up.— wokmaster - m— Professor1982
Comment removed.- Obama's in such a hurry to get this done that he has to travel 500 miles away from the talks to tell people. What a knucklehead. I don't know what you liberals were thinking but you've really outdone yourself with this guy.— Phillies2008WSChamps
You can reach Tom Fitzgerald at 215-854-2718 or tfitzgerald@phillynews.com.
Reach Thomas at tfitzgerald@phillynews.com.
