- (Photo: Reuters/Kevin Lamarque)
President Obama took to the airwaves to address the issue of tax cuts this afternoon.
The tax cuts, signed into law in 2010, are due to expire at the end of this month.
Obama is known for pushing Congress to extend the tax cuts that save families an average of $1,000 per month. He noted that our economy’s recovery is “still fragile” and economists believe it is important to extend the tax cut.
Obama stated: “Congress must act” and “peoples’ voices are starting to get through,” noting that Republican Speaker of the House John Boehner, an adamant opponent of the cuts, recently gave a statement saying that the tax cuts “help the economy.”
Unemployment insurance, which is vital to many families, was also addressed. Obama said that if the insurance were discontinued, “1.3 million Americans would be left out in the cold.” He added that now is not the time to play [political] games with unemployment insurance.
Obama ended his address by stating: “Ending the tax cuts will take money out of the pockets of people just when they need it.”
Last week, the Senate vetoed two bills put forth by Democrat and Republican Representatives. The Democrats’ plan included a provision to reduce taxes on those who earned $50,000 by $1,500, while Republicans planned to reduce taxes by $1,000.
The payroll tax cuts were part of a larger package passed and signed into effect by President Obama in 2010. According to a report by the Joint Committee on Taxation, the cuts were meant to “spare more than 20 million middle-American households from tax increases.”
Now the same households face a tax hike of $1,000 to $1,500 every month. Analysts speculated whether Obama would issue a statement compromising with Republicans to pass the tax cuts, but Obama did no such thing.
Instead, he held firm to his belief that the tax cuts and unemployment insurance must be passed. As of press time, there was no Republican comment issued in response to Obama’s address.