President Obama Urges Congress to Extend Tax Cuts
President Barack Obama delivered a statement at the White House yesterday, urging Congressional leaders to adopt his proposal to extend 2001 and 2003 tax cuts for all but the wealthiest 2 percent of Americans.
The White House has said that if Congress doesn't act before the end of the year, every American family’s taxes will automatically go up—and that a typical middle-class family of four would see its taxes rise by $2,200. "That means less money to buy groceries or fill a prescription," Obama said during his remarks.
Congress is currently in the middle of budget negotiations to avoid the "fiscal cliff," a term that is used to describe a mix of automatic spending cuts and the expiration of a group of policies, including the 2001 and 2003 tax cuts—all of which are set to occur at the beginning of 2013.
The focus of the president's statement was ensuring that any budget framework put forth protects middle-class families and small businesses, but extending the tax cuts would also ensure that the tax burden of low-income families does not increase. Tax credits such as the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) are among our country’s most effective anti-poverty tools.
Bread for the World has maintained that any bipartisan deal to avoid the fiscal cliff must include additional tax revenue, responsible cuts, and explicit protections for the EITC and the CTC, both of which were expanded to assist more Americans in the 2001 and 2003 tax cuts as well as in 2009. We are asking that Congress pass a budget deal that includes a circle of protection around programs for hungry and poor people in the United States and around the world.
During Wednesday's statement, Obama asked that Americans concerned about the expiration of the tax credits take to Twitter and use the hashtag #My2K to tell their members of Congress what an effective $2000 tax hike would mean for them and their families.
"When the American people speak loudly enough, lo and behold, Congress listens," President Obama said.
Sarah Godfrey is Bread for the World's associate online editor.
Act now: Call your members of Congress and tell them they must not balance the budget on the backs of hungry and poor people! Use our toll-free number (1-800-826-3688) and tell them to pass a budget deal that explicitly protects programs that assist low-income families—including the Earned Income Tax Credit and the Child Tax Credit—against cuts or harmful changes.
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