Middle-class families must come first
By Jared Bernstein - 09/21/10 06:53 PM ET
Perhaps the most important question Americans could ask of their representatives right now is this: For whom are you fighting?
President Obama is fighting for permanent tax relief for the middle class. At the end of this year, if Congress fails to act, a family of four in the middle of the income scale will see their tax bill rise by $2,100. For families making $100,000, the tax increase would be about twice that much. That’s why the president has proposed to give permanent tax cuts for every family making less than $250,000, while letting rates on the wealthiest 2 percent of families return to where they were during the late 1990s.
Republicans in Congress, on the other hand, are holding the middle-class tax cuts hostage so they can fight for the richest households in America. As House Republican Eric Cantor (Va.) put it the other day, when it comes to preserving tax breaks we can’t afford for millionaires and billionaires, “…we’re not backing down.”
Let’s take a closer look at those for whom Cantor and his allies are fighting so hard. Extending the tax cuts for the top 2 percent would blow a $700 billion hole in the deficit, and about 84 percent of that money — almost $600 billion during the next decade including interest costs — would go to about 300,000 households with incomes of $1 million and up. That’s less than one-half of 1 percent of America’s households — average income: $3.1 million — and Republicans want to give them an average tax break of more than $1 million each during the next 10 years.
The president, on the other hand, is fighting for the middle-class families who most acutely need tax relief. During the run-up to the financial crisis, while the wealthiest households were enjoying record income gains amplified by huge tax cuts, middle-class income growth was stagnant at best. So this $2,100 means a lot to families in the middle of the income scale: It’s their car insurance or utility bill for more than a year; it’s half a year of groceries; two-thirds of a year of gas for the car.
What possible rationale could Republicans have for holding these critical tax cuts hostage?
more...
http://thehill.com/opinion/op-ed/120131-middle-class-families-must-come-first
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