President Obama is committed to growing our economy from the middle out by creating jobs
and reducing the deficit in a balanced way. That’s how you build a strong and secure middleclass.
Since taking office, President Obama has repeatedly cut taxes for middle-class families to help
them to make ends meet. A typical family making $50,000 a year has received tax cuts totaling
at least $3,600 over the past four years.
Now we face a deadline that requires action on jobs, taxes and deficits by the end of the year:
- On January 1, income taxes are scheduled to go up for 1.9 million middle-class
Colorado families, and tax cuts such as the expanded Child Tax Credit, the 10 percent
tax bracket, marriage penalty relief, and the American Opportunity Tax Credit all
- If Congress fails to act, every American family’s taxes will automatically increase -
including the 98 percent of Colorado families who make less than $250,000 a year and
the 97 percent of American small businesses that earn less than $250,000 a year. A
median-income Colorado family of four (earning $85,000) could see its income taxes
rise by $2,200.
Additionally, if taxes increase on the middle-class then families will have less money in their
pockets. That would have an adverse effect on consumer spending which is 70% of America’s
economy. A report released last week by the National Economic Council and Council of
Economic Advisers estimated consumer spending would fall $200 billion nationwide next year
including $3.4 billion in Colorado. If Congress fails to act, retailers from big chains to mom-andpop
small businesses would be affected -- which is why even the CEO’s of Walmart and Costco
have called for a balanced approach that protects the middle-class.
The President believes we must take a balanced approach to reduce our deficit, that’s why he
has laid out a balanced $4 trillion deficit reduction plan. On top of the $1.7 trillion in bipartisan
spending cuts he already signed (including $1 trillion the Budget Control Act and additional
savings through other legislation), the President’s plan cuts entitlement spending by $600
billion while protecting the investments we need to grow the economy, and asking the wealthy
to pay a little more. In fact, there are about $2 of spending cuts for every $1 in revenue in the
This is an important moment not just to avoid the fiscal cliff—but to lay the foundation for an economy that will support a healthy middle-class, restore economic certainty, and lead to longterm job growth.
Asking millionaires and billionaires to pay their fair share is an essential component of the
President’s plan for balanced deficit reduction. Over the next decade, the President’s plan will
save $850 billion relative to continuing the additional tax cuts that go exclusively to households
making over $250,000, or almost $1 trillion when taking into account the cost of cuts to the
estate tax. The Senate has passed this bill and the President is ready to sign it. The House
should pass it immediately.
While the President is determined to work with Congress to reach a compromise, there is no
reason to delay acting where everyone agrees: extending tax cuts for the middle-class.
There is no reason to hold Colorado’s middle-class hostage while we debate tax cuts for the wealthy; or roughly 2 percent of Colorado families.
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