Protecting the Middle Class News

President Obama Talks Taxes

President Barack Obama delivers remarks on the American Jobs Act at Manchester Central High School, Manchester, New Hampshire, Nov. 22, 2011. (Official White House Photo by Pete Souza)

In 40 days, our taxes will go up -- unless Congress steps in to change that. And speaking from New Hampshire today, President Obama talked about that situation:

[Last] year, both parties came together to cut payroll taxes for the typical household by $1,000 this year. That’s been showing up in your paychecks each week. You may not know it, but it’s been showing up because of the action that we took. Which reminds me, by the way, the next time you hear one of these folks from the other side coming in talking about raising your taxes, you just remind them that ever since I’ve gotten into office, I’ve lowered your taxes, haven’t raised them. That’s worth reminding them. But this payroll tax is set to expire at the end of next month. End of next month, end of the year, this tax cut ends. And if we allow that to happen -– if Congress refuses to act -– then middle-class families are going to get hit with a tax increase at the worst possible time. For the average family, your taxes will go up $1,000 if Congress does not act by the end of the month.

Now, we can’t let that happen. Not right now. It would be bad for the economy. It would be bad for employment.

The American Jobs Act, the President said, actually does one better. It expands expands the tax cut for individuals and cuts payroll taxes for small business owners:

Instead of a $1,000-a-year tax cut next year, the average working family would get a tax cut of more than $1,500. And that’s $1,500 that would have been taken out of your paycheck, would instead be going into your pocket. And that means you’d be spending in small businesses, and that would increase their business, which means they would potentially hire more people.

The American Jobs Act would also cut payroll taxes in half for small business owners.  Say you have 50 employees making $50,000 apiece. You’d get a tax cut of nearly $80,000. That is real money that you can use to hire new workers or buy new equipment.

When Congress takes up this issue after the holiday, the President said, lawmakers have a choice:

Do you want to cut taxes for the middle class and those who are trying to get into the middle class?  Or do you want to protect massive tax breaks for millionaires and billionaires, many of whom want to actually help?  Do you want to help working families get back on solid ground and grow this economy for all of us?  Or do you really want to vote to raise taxes on nearly 160 million Americans during the holidays?  When push comes to shove, are you willing to fight as hard for working families as you are for the wealthiest Americans?  What’s it going to be?  That’s the choice.

Read the full remarks here.  Or check out our calculator to learn what Congressional inaction means for your family.

President Obama on the Supercommittee's Failure to Reach a Compromise

Watch President Obama's full remarks here.

This afternoon, the group of lawmakers tasked with cutting an additional $1 trillion from the deficit announced that their effort had failed. 

President Obama addressed that situation from the White House Briefing Room just before 6:00 PM ET.

While some members of Congress are talking about undoing the automatic spending cuts that will take effect in 2013 if lawmakers can't reach a compromise, the President said that kind of backpeddling is unacceptable:

I will veto any effort to get rid of those automatic spending cuts to domestic and defense spending. There will be no easy off ramps on this one.

There is still plenty of time for Congress to act, and there are a range of issues that demand their immediate attention.

That starts with the payroll tax cut. Without a vote from Congress, taxes for nearly every American will go up on January 1st.

"I'm not about to let that happen," President Obama said.

America's Small Business Owners Can't Wait for Congress To Act

Watch small business owners talk about the American Jobs Act here. 

On Thursday, Republicans and Democrats in the Senate did the right thing and voted to pass tax credits that will encourage businesses to hire America’s veterans. A group of business owners who recently met with the White House Business Council say they hope that Congress will pass the other provisions in the American Jobs Act and support their efforts to grow their companies and create jobs in their communities.

How the Recovery Act Lifted Millions from Poverty

On Monday morning, the Census Bureau released findings that provide a more accurate look at the impact public policy has on poverty. These data demonstrate that policies supported and extended by the President to give a helping hand to those hit hardest by the recession – tax cuts for working families, assistance for basic food costs and school lunches, and help with housing – kept millions of Americans out of poverty last year. 

Additionally, the Center on Budget and Policy Priorities released a new report based on the Census Bureau’s new data which found that provisions passed as part of the Recovery Act directly lifted nearly 7 million Americans out of poverty in 2010 and reduced poverty for 32 million more. This is on top of 6 million people lifted out of poverty by these policies in 2009. And these numbers are conservative estimates that do not reflect the indirect benefits from the jobs created through these policies. 

In contrast to this approach, Republicans in Congress opposed all of these measures and passed a budget that would both cut back on many of these programs and also convert them into block grants, which would prevent them from automatically expanding in hard times. Had we followed that path, many more Americans would be in poverty today. 

Vice President Biden Talks College Affordability in Pennsylvania

Vice President Joe Biden answers questions after giving a speech on jobs and education at the University of Pittsburgh, in Pittsburgh, Pennsylvania, November 4, 2011. (Official White House Photo by David Lienemann)

On Friday, Vice President Biden spoke to a group of students at the University of Pittsburgh. Making it easier to pay for college has been a top priority of the Middle Class Task Force and our entire Administration since the President and Vice President came into office. We stopped paying private lenders to act as middlemen for federal student loans, and invested the savings in student aid. We increased the maximum Pell Grant award by more than $800. And we created the American Opportunity Tax Credit to give students up to $10,000 over four years to help with tuition and other expenses.

Today, the Vice President focused on our latest initiative – capping student loan payments. Current law allows borrowers to limit their federal loan payments to 15 percent of their discretionary income and forgives all remaining debt after 25 years, or 10 years for graduates working in public service jobs. Last year, following a recommendation from the Middle Class Task Force, the President proposed, and Congress enacted, a plan to lower payments even further starting in 2014. But many students can’t wait until 2014 for relief. So last Wednesday, the President announced an executive action that will cap federal loan payments at 10% of discretionary income and shorten the forgiveness timeline to 20 years starting next year. 

We estimate that this new cap lower payments for 1.6 million borrowers, including 60,000 Pennsylvanians. Many of these borrowers will save hundreds of dollars every month. For example, a teacher with $25,000 in debt and a $30,000 salary would see her monthly payments drop from $287 under the standard repayment plan to $114 under the new cap. You can learn more about our plan to help students here.

By the Numbers: 2 Percent

The United States is falling behind on investing in the roads, bridges, airports, and transit systems that keep our economy humming. We spend just 2 percent of our GDP on infrastructure projects. Europe and China invest 5 percent and 9 percent of their respective GDPs on developing infrastructure.

Functioning infrastructure provides a critical backbone for a strong economy. Research shows that investments in creating, maintaining, or expanding transportation networks promote efficiency, productivity, and more rapid economic growth.

Today, President Obama is calling on Congress to pass a piece of the American Jobs Act that will invest $50 billion in our nation’s transportation infrastructure and $10 billion in a National Infrastructure Bank. Together, these initiatives will put hundreds of thousands of construction workers back on the job rebuilding our roads, rails, and runways. With 1.1 million constructions workers out of work, we can’t wait to invest in our infrastructure.  

By the Numbers: 650 Percent

The number of prescription drug shortages tripled between 2005 and 2010. Besides having serious consequences for people's health and well-being, drug shortages drive vendors to charge outragous prices for drugs that are normally affordable when in stock. One report found that price-gouging vendors mark up prices on drugs in short supply by 650 percent, on average.

Another report about these “grey market vendors”—companies that inflate prices of drugs running in short supply—found that a leukemia drug whose typical contract price is about $12 per vial was being sold at $990 per vial. At the extreme, a drug used to treat high blood pressure that was normally priced at $25.90 was being sold at $1,200 due to a drug shortage.

Only a very small number of drugs are affected by such shortages, but for many patients, changing medications may be the difference between getting healthier and getting sicker. Drugs affected by shortages include cancer treatments, anesthesia drugs, and other medications that are critical to the treatment and prevention of serious diseases and life-threatening conditions.

Today, President Obama signed an Executive Order that will help prevent shortages that lead to this type of price gouging. The order directs the Food and Drug Administration to expand reporting about situations that might lead to drug shortages, and also to work with the Department of Justice to investigate illegal price gouging.

Mapping Out the American Jobs Act

The American Jobs Act is a big proposal that can be hard to visualize, so we wanted to put together a new tool to help show the impact.

Our new map breaks down specific ways the President's plan helps to create jobs and put money back in families' pockets, state by state.

If you wanted to see what a typical tax cut looks like for a family in Texas, it's right here: $1,460.

Teacher jobs in North Carolina? 13,400.

Money for roads and bridges in Colorado? $494.8 million.

Take the time to dig in and learn how the American Jobs Act would help your state and community -- and share the map with those you know.

Keeping First Responders on the Job

Tyrone Booth and Jesse Carpenter are police officers in Flint, Michigan -- where Vice President Biden visited earlier this month. Because of budget cuts, they've seen their department shrink since the start of the recession. In fact, at various times in recent years, each has been laid off from the force. Both are keenly aware of the ways in which these reductions have put public safety at risk.

Officer Booth says the Flint police must now prioritize the calls to which they respond. A shooting or an assault must come before a break-in or a burglary, which can be hard for citizens affected. "When someone's home has been burglarized, it's a very sensitive and serious offense to them,” he said. “And we're just unable to get there in a timely manner."

Watch:

Keeping Americans safe is a top priority for President Obama, which is why the American Jobs Act will provide $5 billion to help states and local communities keep first responders on the job. Earlier, Secretary of Homeland Security Janet Napolitano and Attorney General Eric Holder spoke at a gathering of the International Association of Chiefs of Police and discussed the Administration's support for the nation's fire fighters and police officers.

Read more here.