The United States 112th Congress is back in session. Members in the Senate and House of Representatives will have to discuss the nation’s looming debt and how to fix it. Will both sides agree to allowing some of the Bush-era tax cuts to expire by the end of the year? Will entitlement programs be included in the avoidance of the so-called ‘fiscal cliff”? Will democrats and republicans compromise on a budget deal for the American people? Democrats want spending cuts and tax increases for upper-income households. And, the Republicans want spending cuts but no tax increase rates.
U.S. Congressman Bobby Scott, 3rd District, VA, says the media is creating the drama on the so-called ‘fiscal cliff.’ If Congress doesn’t agree on a budget by December 31, the government will not shutdown by January 1 or 2 of 2013. During our interview on the nation’s budget, Congressman Scott says, “you can’t cut taxes, increase spending and reduce the deficit.” Any tax cuts will impact the budget, he calls it “arithmetic.”
U.S. Congressman Bobby Scott and I discuss the nation’s budget.
Join me for next week’s budget talks with other members of Congress.
From the White House:
Since taking office, President Obama has repeatedly cut taxes for middle-class families. A typical family making $50,000 a year has received tax cuts totaling $3,600 over the past four years – more if it was putting a child through college.
If Congress fails to act before the end of the year, every American family’s taxes will automatically go up in 2013, including 114 million middle-class families. A typical middle-class family of four would see its taxes rise by $2,200.
President Obama is calling on Congress to act on his proposal to extend tax cuts for every family making under $250,000 a year—98 percent of all Americans and 97 percent of small businesses.
Under President Obama’s proposal, all Americans—including the wealthiest Americans—get a tax cut on their first $250,000. And those who make less than $250,000 won’t see their income taxes go up a single dime.
When American families have more money to spend on things like clothes, cars, furniture, and food, this spending generates greater profit for businesses and increased demand that causes businesses to invest and hire more workers.
If Congress doesn’t act, consumers could spend nearly $200 billion less than they otherwise would have in 2013 just because of higher taxes.
An increase in middle class taxes and the resulting decline in consumer spending could slow the growth of real GDP by 1.4 percentage points.