Senate Vote Blocks Buffet Rule

Statement by the President

Tonight, Senate Republicans voted to block the Buffett Rule, choosing once again to protect tax breaks for the wealthiest few Americans at the expense of the middle class.

The Buffett Rule is common sense. At a time when we have significant deficits to close and serious investments to make to strengthen our economy, we simply cannot afford to keep spending money on tax cuts that the wealthiest Americans don’t need and didn’t ask for.  But it’s also about basic fairness – it’s just plain wrong that millions of middle-class Americans pay a higher share of their income in taxes than some millionaires and billionaires.  America prospers when we’re all in it together and everyone has the opportunity to succeed.

One of the fundamental challenges of our time is building an economy where everyone gets a fair shot, everyone does their fair share, and everyone plays by the same rules.  And I will continue to push Congress to take steps to not only restore economic security for the middle class and those trying to reach the middle class, but also to create an economy that’s built to last.

Image courtesy of http://mindmillion.com.

BREAKING NEWS: House Passes Payroll Tax Cut Extension

Bill Passes by a Vote of 293 to 132

12:30 PM - MSNBC is reporting that the House has approved a bill that will allow the Social Security payroll tax to remain at low rate and extend unemployment benefits for millions of Americans struggling to survive during the economic crisis. 

The following MSNBC article provides more detail on the House action and what it means for the country:

House Approves Payroll Tax Cut Extension

West Wing Week 12/23/11 or "#40Dollars"

Oval Office Chat Session: Obama and Boehner

Trying to Work it Out

Speaker Boehner called the President this morning and the President reiterated to the Speaker that the only viable option currently on the table is for the House of Representatives to pass the bipartisan Senate compromise that received the support of nearly 90 percent of the Senate.  The President told Speaker Boehner that he is committed to begin working immediately on a full-year agreement once the House passes the bipartisan Senate compromise that prevents a tax hike on 160 million Americans on January 1.

Photo source: The White House
Author: Pete Souza
Permission: The White House

Oval Office Chat Session: Obama, Boehner and Reid

President Urges Speaker to Take Up Bipartisan Compromise Passed in the Senate

Today, the President made separate calls to Speaker Boehner and Leader Reid.  In his call to Speaker Boehner, the President reiterated the need and his commitment to work with Congress to extend the payroll tax cut for the entire year, and the fact that the short-term bipartisan compromise passed by almost the entire Senate is the only option to ensure that middle class families aren't hit with a tax hike in 10 days and gives both sides the time needed to work out a full year solution. 

President Obama urged the Speaker to take up the bipartisan compromise passed in the Senate with overwhelming Democratic and Republican support that would prevent 160 million working Americans from being hit with a holiday tax hike on January 1st. 

The President also spoke with Leader Reid and again applauded him for the work he conducted with Minority Leader McConnell to achieve a successful bipartisan compromise that passed overwhelmingly in the Senate on Saturday, and Senator Reid reaffirmed his commitment to secure a bipartisan year long tax cut after the House passes the two month extension.

The President urged the Speaker to allow a vote on the one compromise that Democrats and Republicans passed together to give the American people the assurance they need during this holiday season that they won't see a significant tax hike in just 10 days.

Photo source: The White House
Author: Pete Souza
Permission: The White House

White House Briefs

President Obama Speaks on the Payroll Tax Cut

President Obama said that extending the payroll tax cut is not a game for the millions of people who depend on that money to make ends meet.

President Obama on Payroll Tax Cut Extension

White House Briefs

Carney: 'This Congress Needs to Do Its Job'

Press Secretary Comments on House Vote on the GOP Payroll Tax Cut Plan

This Congress needs to do its job and stop the tax hike that’s scheduled to affect 160 million Americans in 18 days. This is not a time for Washington Republicans to score political points against the President. It’s not a time to refight old ideological battles. And it’s not a time to break last summer’s bipartisan agreement and hurt the middle class by cutting things like education, clean energy, and veterans’ programs without asking the wealthiest Americans to pay their fair share.

This is a time to help the middle class and all those trying to reach it by extending a tax cut worth $1,000 for the average family. The President has been very clear: Congress should not finish their business before finishing the business of the American people. They cannot go on vacation before agreeing to prevent a tax hike on 160 million Americans and extending unemployment insurance. That is simply inexcusable in this economy. It is our expectation that in the eleventh hour Congressional Republicans and Democrats will come to an agreement to protect the middle class and finish their budget work for the year.

White House Briefs

Addabbo: 'Now for the Harsh Reality....'

Senator Lauds Tax Break, But Expresses Concern Over 2012 Fiscal Challenges

The following statement was issued through the office of New York State Senator Joseph Addabbo, Jr. (D-NY):

I am thankful to have been given an opportunity to give the middle class of this state a long-overdue and certainly needed State income tax break. The restructuring of New York State’s tax code creates a fair and progressive tax system and provides equity to citizens across this city and state.

Also included in the legislative package that I supported was the elimination of the MTA payroll tax for private and parochial schools, as well as small businesses with a payroll under $1.25 million. These funds to the MTA are to be included in the budget negotiations for the Fiscal Year 2012-2013 State Budget.

The other parts of the legislation that included programs for job creation, capital improvements and youth employment also had merit.

Now for the harsh reality: while I believe we took a step in the right direction for those individuals and entities who truly needed financial relief--and I give Governor Cuomo credit for guiding this state in that positive direction--I cannot ignore the fact that we still are facing serious fiscal challenges next year.

Even though we addressed the approximately $300 million budget deficit in this year’s budget, there still remains roughly a $2 billion deficit for next year. Coupled with a 4% increase in education and Medicaid funding in the Fiscal Year 2012-2013 budget, severe funding cuts to most every state agency is certainly a possibility. Individuals with disabilities and our seniors can hardly withstand another round of harsh budget cuts to their critical programs. Additionally, the lack of federal funding could cause more drastic fiscal measures to be taken in our state.

I am also concerned over the vague language in the legislation that purports to restore any shortfall in MTA funding given the elimination of the payroll tax. I am confident that my colleagues in government will work together to avoid any reduction in public transportation service or fare increases.

I look forward to returning to Albany after the holidays to continue the work on our state’s fiscal issues, the needs of my people, and the issue of redistricting.

Relief Through Reduction of MTA Payroll Tax

Cuomo Signs Legislation to Cut Taxes for More Than 700,000 Small Businesses and the Self-Employed

Governor Andrew Cuomo has signed a new law that will reduce the MTA payroll tax, providing relief for more than 290,000 small businesses and more than 410,000 self-employed New Yorkers.

The tax reduction is part of the Governor's comprehensive plan, passed by the legislature last week, to create jobs and cut taxes for middle class New Yorkers, and revitalize the state's economy.

"Small businesses are New York's growth engine and this tax reduction will help create jobs and get our state's economy back on track without jeopardizing funding for the MTA," Governor Cuomo said.

"I thank the leadership as well as the members of the legislature for their dedication in seeing the MTA tax reduced and working to get our economy moving again."

On December 7, the state legislature passed the Governor's Middle Class Tax Cut and Job Creation legislation that reduces the MTA payroll tax on small businesses while maintaining the necessary funding for the MTA from other sources.

The tax will be eliminated for 289,000 small businesses, defined as those having an annual payroll between $10,000 and $1.25 million, in the MTA region. Additionally, more than 6,000 businesses with payrolls between $1.25 and $1.75 million will see their payroll tax cut by either one third or two-thirds.

The MTA payroll tax cut will also benefit approximately 414,000 self-employed taxpayers. All elementary and secondary schools, public or private, are exempt from the payroll tax under the new law. The new law has no impact on MTA funding as the state will compensate the MTA for all revenue lost by the tax cut.

"The MTA payroll tax has been an enormous burden on businesses and today we are lifting that burden. More than 290,000 small businesses will now have a greater opportunity to invest in their businesses and invest in creating new jobs. I want to thank the members of the Senate Republican Conference, especially Senator Lee Zeldin, for keeping up the pressure to repeal this job-killing tax; and I thank Governor Cuomo for his leadership and for signing this measure into law," said Senate Majority Leader Dean G. Skelos.

Senator Lee Zeldin noted, "I want to thank Governor Cuomo and my legislative colleagues for their partnership to help begin repealing the job-killing MTA Payroll Tax. The MTA Payroll Tax has been damaging our economy and restricting the growth of quality jobs in New York. Repealing this tax for all small businesses and schools, and reducing the rate for others, spurs real economic development, and helps put New York State on the path towards prosperity."

"Reducing the MTA payroll tax is a major win for commuters, small businesses and other taxpayers here in Nassau County. I thank Governor Cuomo for his leadership in protecting the taxpayers and creating jobs across New York State. By working together and putting politics aside, he has shown that government can work for all of the people," concluded Deputy Speaker Earlene Hooper.

A table with the location of small businesses that stand to benefit from the tax reduction, and the percentage their payroll taxes will be cut, is below:

MTA Payroll Tax Cut
	Elimination	Reduction by 67%	Reduction by 33%
New York City	171,516	2,169	1,613
Dutchess	5,320	60	36
Nassau	37,267	374	301
Orange	6,440	82	62
Putnam	2,167	19	15
Rockland	6,895	78	55
Suffolk	34,702	363	327
Westchester	25,027	318	194
Total	289,334	3,463	2,603

Image courtesy of http://developers-tattoo.blogspot.com

Weekly Address: Ensuring a Fair Shot for the Middle Class

President Obama calls on Congress to do what's right for the American people by extending the payroll tax cut and confirming Richard Cordray to lead a new consumer-watchdog agency that will protect families from dishonest business practices.