Posted on 11/26/2012 5:26:59 AM PST by Libloather
White House: Threat of tax hikes could hurt holiday shopping
By Justin Sink - 11/26/12 06:00 AM ET
The White House released a report Monday arguing that a failure to extend tax cuts for middle class families could have a negative impact on the economy which outweighs the gains from traditional Black Friday and Cyber Monday holiday sales.
According to the report, reverting back to pre-Bush era tax rates would reduce consumer spending some $200 billion — four times the amount holiday shoppers spent on Black Friday weekend in 2011.
"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 White House said in an e-mail Monday.
The new report comes as lawmakers return to Washington this week to begin negotiating a deal to avoid the looming “fiscal cliff.”
If lawmakers are unable to strike a deal before the end of the calendar year, taxes will increase across the board while dramatic social and defense spending cuts will be automatically triggered.
The report, issued by the National Economic Council and the Council of Economic Advisers, argues congressional Republicans should immediately extend tax cuts for all but the wealthiest Americans.
"The typical middle-class family will see their taxes go up by $2,200 next year, negatively impacting businesses and retailers across the nation," said the statement. "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."
But Republican lawmakers have objected to a deal that would raise the tax rate for the wealthiest Americans, arguing that doing so would stifle job growth. Moreover, Republicans want President Obama to agree to significant budget cuts and entitlement reforms as part of an overall debt package.
During appearances on the Sunday talk shows, top legislators on both sides of the aisle signaled the dire consequences that would result from failing to strike a bargain.
"The election's over," Rep. Peter King (R-N.Y.) said on NBC's "Meet the Press" Sunday. "We have to show the world we're adults."
Some Republicans, including Sens. Saxby Chambliss (Ga.) and Lindsey Graham (S.C.) have also said they would be willing to violate the Americans for Tax Reform anti-tax pledge if Democrats counter with significant entitlement reforms.
"So I agree with Grover, we shouldn't raise rates. But, I think Grover is wrong when it comes to [saying] we can't cap deductions and buy down debt," Graham told ABC News. "I want to buy down debt and cut rates to create jobs, but I will violate the pledge, long story short, for the good of the country, only if Democrats will do entitlement reform."
Meanwhile, the White House hopes to ramp up pressure on Republicans with the release of the report on Cyber Monday, the online equivalent to the traditional Black Friday retail sales. It's the latest push from President Obama, who last week blasted his campaign e-mail list with a plea to supporters urging them to contact their elected officials in support of the president's plan.
"We shouldn’t hold the middle class hostage while Congress debates tax cuts for the wealthy," the president said in his weekly address. "Let’s begin our work by actually doing what we all agree on. Let’s keep taxes low for the middle class. And let’s get it done soon – so we can give families and businesses some good news going into the holiday season."
true - what I’m pointing out is the rhetoric being used by O to intimidate the republicans (and it certainly doesn’t take much does it?)
Before the election...Bush tax cuts were evil. They were the reason for the economic collapse. They were the reason for the deficits. They were “only” for the rich - on the backs of the middle class!
And now?
We can’t allow those middle class tax cuts to expire!
If republicans had any gonads they would hold a presser and point out this conflicting narrative from the libs.
Sure, but who would actually broadcast it? Fox?! More preaching to the choir. Short of civil unrest or a civil war, I don't see how we get out the path we're being forced onto. The GOP as a whole seems mostly neutered.
And same thing when Obama says we are not going to return to failed policies of the Bush Administration. What policies would that be? We still have the evil Bush tax cuts. We are still spending ourselves into bankruptcy, only at an increased speed. Seems as though Obama has just doubled down on the worst of the Bush policies while spending a great deal of rhetoric on taxing the rich.
Meanwhile the Obama Fed policy is rapidly printing money, and the impact makes Bush and even the highest tax proposals currently being made look like pikers by comparison as the dollar devaluation cuts into consumers disposable income or has them chose which necessity to do without.
It's amazing that buildings can do that.
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