With Cyber Monday, we are now in full holiday shopping season. Today, the White House released a report on the impact on consumer spending and retailers of impending middle class tax hikes. Congresswoman Sheila Jackson Lee reiterated her call for Congress to work together to quickly extend tax cuts for 98 percent of all Americans. If Congress doesn't act, middle-class families will see their income taxes go up on January 1st.
"As the new White House report illustrates, middle class families and our economy can't afford middle class tax hikes. By extending the middle class tax cuts, the typical middle-class family will maintain a tax break of $2,200 next year. We must work together to provide certainty and peace of mind to families, retailers and small businesses during this holiday season," said Rep. Jackson Lee.
The President's Council of Economic Advisors estimates that failing to extend the middle class tax cuts will negatively impact consumer spending by 1.7 percentage points next year, slow economic growth by 1.4 percentage points, and reduce consumer spending by $200 billion.
President Obama and Congressional Democrats have proposed to extend all the income tax cuts that benefit families who make less than $250,000 per year, and the Senate has passed that bill.