Wednesday, House Republicans decided to ignore the Senate’s suggestion to limit tax-relief to middle- and low-income earners. The Senate passed a bill last week that would expire tax cuts for the top two percent of earners, limiting tax relief to the first $200,000 in income for all earners ($250,000 for joint filers). Constitutionally, revenue bills must originate in the House. The consequence of failing to make law of either will be a tax hike for all Americans.
“It’s always a net positive to let taxpayers keep more of what they earn,” said Rep. Jeb Hensarling, R-Texas, to the Associated Press. “[B]ut not all tax relief is created equal for the purposes of helping to get the economy moving again.”
President Barack Obama said in a White House address, “last week I was pleasantly surprised. I was glad to see the Senate come together and extend tax cuts on the first $250,000 of every family’s income. That means 98% of Americans won’t see their income taxes go up next year. That means that 97% of small businesses wouldn’t see their income taxes go up next year.” That comes amid Republican complaints that the president is engaging in class warfare, targeting the rich for tax increases.
At a campaign stop at Rollins College in Winter Park, Fla., the president said he wants to create “an economy where everybody gets a fair shot and everybody is doing their fair share and everybody is playing by the same set of rules.”
The White House stated “unless the House of Representatives acts, a typical family of four will be stuck paying an additional $2,200.”
Mitt Romney remarked he “would prefer to see the payroll tax cut on the employer side.”