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White House: Threat of tax hikes could hurt holiday shopping (Bush tax cuts ok for now)
The Hill ^ | 11/26/12 | Justin Sink

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."


TOPICS: Crime/Corruption; Extended News; Government; News/Current Events
KEYWORDS: hikes; holiday; shopping; taxes
I wish they would make up their minds.
1 posted on 11/26/2012 5:27:06 AM PST by Libloather
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To: Libloather

Any tax increases should be across the board, period. I would push that agenda and see how far Barky is willing to go. One more thing, I’d push to get rid of that inane earned income credit, it is nothing but a augmentation of the minimum wage paid through the tax system. A billion here a billion there, before you know it we would be talking real money.

This is not meant to suggest tax increases are going to solve the federal deficit, they MUST begin to roll back the federal largess....all programs....and eliminate the fluff like cell phones and the like.


2 posted on 11/26/2012 5:32:22 AM PST by Mouton (Voting is an opiate of the electorate. Nothing changes no matter who wins..)
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To: Libloather

So now the democrats are upset that the Bush TAX CUTS FOR THE MIDDLE CLASS will expire?

How ‘bout that.


3 posted on 11/26/2012 5:34:06 AM PST by Scotswife
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To: Libloather
So pathetic. If I didn't have to live here in the US my attitude would be , "GOOD! Go off the cliff and good riddance. You elected an out and out Marxist not once but TWICE so you deserve what you get."

Sadly, I'm not in a position to take that attitude because I, like most of you here on FR, will also be going down with Husein's and his regime.

4 posted on 11/26/2012 5:36:20 AM PST by YankeeReb
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To: Libloather

Obama voters voted for economic depression.


5 posted on 11/26/2012 5:37:05 AM PST by FreeAtlanta (bahits.com)
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To: YankeeReb
Sadly, I'm not in a position to take that attitude because I, like most of you here on FR, will also be going down with Husein's and his regime.

At this point, I'm ready for a pyrrhic victory.

6 posted on 11/26/2012 5:40:02 AM PST by Flick Lives (We're going to be just like the old Soviet Union, but with free cell phones!)
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To: Libloather

Only a total idiot or Keynesian (but I repeat myself) could possibly think that spending and consumption produces prosperity and growth. Rather than just the short appearance thereof.


7 posted on 11/26/2012 5:43:10 AM PST by all the best (`~!)
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To: Libloather; ding_dong_daddy_from_dumas; DoughtyOne; Gilbo_3; Impy; stephenjohnbanker; NFHale; ...
RE :”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”

I know I wont like whatever the Republicans will agree to.

My idea is to play the same type of cynical political game that Dems are. Question : Did Pelosi get the blame when the economy crashed in 2007 to 2008??
Of course not because Dems played it right.

If nothing is done then all those taxe rates go up, rates, dividends, etc, and some automatic spending cuts go into effect. These require NO votes to happen.

Very simple plan, House Republicans appear to cave to Obama by extending just some of the tax cuts, instead of $250K make the threshold 100K and let all the spending cuts go into effect at the same time. That will head off the 'taxing the middle class to protect the rich' charge while at the same time not breaking any pledges or voting to increase any taxes.

Then make sure Obama owns it. Go on all the TV shows and say that O raised those taxes because he won the election. Then you got a issue for 2016 or maybe even 2014.

Republicans being outsmarted by O is getting old.

8 posted on 11/26/2012 5:47:13 AM PST by sickoflibs (Has Bohner caved to Obama again yet?)
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To: Mouton
I call it the original "Cash for Clunkers" program.

At tax time, Young Women With Bastards (Obama constituency group) receive some $3,000-5,000 as a "refund" on their taxes.

I've observed that many of these checks are used to purchase crappy cars.

9 posted on 11/26/2012 5:47:36 AM PST by Aevery_Freeman (The trouble with the "masses" is that they never achieve the "m")
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To: Libloather

This sounds like satire.


10 posted on 11/26/2012 5:59:34 AM PST by GeronL (http://asspos.blogspot.com)
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To: Libloather
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

Let all the Bush tax cuts expire. The nation still laughably still blames him for the bad economy anyway, so let that part of his legacy die off.

No complaining, America. You wanted this.

11 posted on 11/26/2012 6:03:48 AM PST by ScottinVA (I've never been more disgusted with American voters.)
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To: Flick Lives
At this point, I'm ready for a pyrrhic victory.

Me too. American voters need to learn the up-close-and-personal lesson of "elections have consequences."

12 posted on 11/26/2012 6:06:13 AM PST by ScottinVA (I've never been more disgusted with American voters.)
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To: Libloather

Bush’s fault and unexpectedly of course.

Morons appealing to morons!


13 posted on 11/26/2012 6:11:19 AM PST by CSM (Keeper of the Dave Ramsey Ping list. FReepmail me if you want your beeber stuned.)
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To: Libloather

So, if you have enough money to blow on Christmas shopping....it’s Bush’s fault


14 posted on 11/26/2012 6:25:04 AM PST by silverleaf (Age Takes a Toll: Please Have Exact Change)
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To: Libloather

The highest bidder does that for them.


15 posted on 11/26/2012 6:31:28 AM PST by Vaduz
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To: Mouton
I’d push to get rid of that inane earned income credit, it is nothing but a augmentation of the minimum wage paid through the tax system.
Dito that.

Plus the EIC is a Dem vote buying scam. It's nothing but a de facto welfare gimmick -- The more 'children' you can claim the bigger the 'earned income credit' you receive.

Some illegals who use a Tax Number to file have been caught claiming as many as twenty 'children' or more. Some of whom didn't exist or who lived back in Mexico and weren't even their children like nieces and nephews. The 'refunds' were in five figures: $20,000-$30,000.

16 posted on 11/26/2012 6:37:19 AM PST by Condor51 (Si vis pacem, para bellum.)
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To: Scotswife

I thought all the tax cuts were for the rich. obama is a lying sack of crap and he makes me physically sick.


17 posted on 11/26/2012 6:40:09 AM PST by jersey117
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To: jersey117

Right?
And they get away with it election after election.

Push the whole “tax cuts for the rich” meme before the election, but NOW? Oh no! We can’t let those tax cuts expire!
Every day middle class americans will cut back on Christmas shopping!


18 posted on 11/26/2012 7:13:27 AM PST by Scotswife
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To: Scotswife
"Every day middle class americans will cut back on Christmas shopping!"

The reported crowds at the retail stores would seem counter to this. Probably a whole lot of people spending their "Obama won and I'm happy" money. That or they figure Obama will bailed them out somehow.

19 posted on 11/26/2012 10:15:52 AM PST by CatOwner
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To: Libloather

What middle class tax hikes? Obama and the Democraps all said they were “Bush tax cuts for the rich.”


20 posted on 11/26/2012 10:26:50 AM PST by CodeToad (Liberals are bloodsucking ticks. We need to light the matchstick to burn them off.)
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To: CatOwner

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.


21 posted on 11/26/2012 1:08:33 PM PST by Scotswife
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To: Scotswife
"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.

22 posted on 11/26/2012 1:22:28 PM PST by CatOwner
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To: Scotswife
Yes, and also, If the Bush tax cuts were responsible for getting us into the ditch, how come Obama didn't get rid of them during the 1st 2 years when he had total control of both houses of Congress?

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.

23 posted on 11/26/2012 1:23:40 PM PST by greeneyes (Moderation in defense of your country is NO virtue. Let Freedom Ring.)
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To: Libloather
The White House released a report Monday

It's amazing that buildings can do that.

24 posted on 11/26/2012 1:30:26 PM PST by St_Thomas_Aquinas (Viva Christo Rey!)
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