Dec 31 - Taxes moving on up!

Increasing Taxes on Middle-Class Families Will Hurt Consumer Spending | The White House

Today, as we move into the holiday shopping season, the National Economic Council and the Council of Economic Advisers released a report called The Middle-Class Tax Cuts’ Impact on Consumer Spending and Retailers. This report provides new analysis on the impact to retailers and consumer spending if Congress fails to act to avoid taxes going up on 98 percent of Americans at the end of the year.

If Congress doesn't act, middle-class families will see their income taxes go up on January 1st. The typical middle-class family will see their taxes go up by $2,200 next year, negatively impacting businesses and retailers across the nation. The President has called on Congress to take action and stop holding the middle class and our economy hostage over a disagreement on tax cuts for households with incomes over $250,000 per year.

While the President is committed to working with Congress to reach compromises on areas of disagreement, there is no reason to delay acting where everyone agrees: extending tax cuts for the middle-class. There is no reason to hold the middle-class hostage while we debate tax cuts for the highest income earners.

Our economy can’t afford that right now. New analysis by the President’s Council of Economic Advisers (CEA) finds that:

Allowing the middle-class tax rates to rise and failing to patch the Alternative Minimum Tax (AMT) could cut the growth of real consumer spending by 1.7 percentage points in 2013. This sharp rise in middle-class taxes and the resulting decline in consumption could slow the growth of real GDP by 1.4 percentage points, which is consistent with recently published estimates from the Congressional Budget Office.
Faced with these tax hikes, the CEA estimates that consumers could spend nearly $200 billion less than they otherwise would have in 2013 just because of higher taxes. This reduction of $200 billion is approximately four times the total amount that 226 million shoppers spent on Black Friday weekend last year. As the figure below shows this $200 billion reduction would likely be spread across all areas of consumer spending.


American consumers are the bedrock of our economy, driving more than two-thirds of the overall rise in real GDP over 13 consecutive quarters of economic recovery since the middle of 2009:

Consumer spending makes up roughly 70 percent of the American economy, as measured by Gross Domestic Product.
Consumer sentiment is at its highest level since September 2007, after plummeting in the summer of 2011.
The National Retail Federation is forecasting that holiday sales will grow 4 percent this year to $600 billion. Last year, consumers spent around $50 billion on Black Friday Weekend alone.
The retail industry employs 15 million Americans, and has been responsible for 9 percent of total employment growth in the 40 months since the recession ended in June 2009.
And as we approach the holiday season, which accounts for close to one-fifth of industry sales, retailers can’t afford the threat of tax increases on middle-class families.

The President has called on Congress to take action and stop holding the middle class and our economy hostage over a disagreement on tax cuts for households with incomes over $250,000 per year. The Senate has passed this bill and the President is ready to sign it.

President Obama understands we must take a balanced approach to reduce our deficit, that’s why he has laid out a $4 trillion deficit reduction plan that asks the wealthy to pay a little more and preserves the investments we need to grow the economy. The President has already signed $1.1 trillion in spending cuts and he looks forward to working with Democrats and Republicans on a balanced approach to further reduce our deficit. This is an important moment not just to avoid the fiscal cliff—but to lay the groundwork for an economy that will support a healthy middle class, restore economic certainty, and lead to long-term job growth.

Just got my first check stub for the new year and wtf!!!!!! Cmon obama might as well take the whole damn check [pic]

What about the poor? They're completely ignoring those will see public benefits and food stamps go down when spending cuts kick in.

my taxes will go up around 3500-4000 for the entire year... [pic]

so much for the house i was gonna buy

Its nuts didnt think much of it until i saw my first pay stub for 2013 i was like [pic]

Fed and state hitting hard obama [pic]

[pic]"While the President is committed to working with Congress to reach compromises on areas of disagreement, there is no reason to delay acting where everyone agrees: extending tax cuts for the middle-class. There is no reason to hold the middle-class hostage while we debate tax cuts for the highest income earners"

Taxes going up isn't always a bad thing.........................

I'm just going to leave it at that.

if i was rich i would be annoyed but probably wouldn't care that much.. but if you are middle class

50-120k or so... you will pay between 1200-4500 a year...

thats like 300 400 a month.. thats nearly a car note and a half... or a student loan bill..... for the muthafukin gov't!!!!!!!

man that is not bad it's a tragedy

LA Times has confirmed that a deal is near, and taxes will increase on income above $450K

aww damn my !! still going up anyway [pic] but fareal I hearing they aren't voting tonight tho

The Government spends too !!ing much. They are quick to raise taxes but never want to have a serious discussion about cutting their !!ing spending.

Well hopefully something gets done

Some would say they should be greatful they live in a country where they can make $120K a year and only pay $4500 on it.

The wealthy are the biggest freeloading whiners I swear.

a deal will be done at 11:50pm

Don't really understand why they're going up tho.

this is a self made thing, something needs to be done, so congress set this cliff thing up as a way to force their hands. The combo of Tax increases and spending cuts were thought to be bad enough everyone would be forced to make a deal.

i still havent gotten my first check for 2013, i wonder wtf its gonna be like

For some reason your post got to me and I just have to respond.

First, let me say: It sucks for taxes to go up on people that can't afford to bring home less money. I understand that, because at many times in my life (including now), I am one of those individuals.

However, I can't sit back and complain about public schools, the state of our highways and roads, our anorexic law enforcement, the state of hospitals, the amount of time it would take for an ambulance to reach me if I were to need one, etc. if I am unwilling to pay a penny more in taxes.

I could go on for days about this, but I will save it for another day.

Happy new year everyone, don't drink too much, and make yourself a better person in the coming year.

America is dead and always is.