Congressional Republicans are refusing to even consider a plan that would extend tax cuts for everyone but the wealthiest Americans immediately. Instead, they are holding middle class tax cuts hostage in an attempt to lock in historically low rates for top 2%. Here in Alabama, 6 of our 7 “representatives” are siding with the wealthiest Americans, no matter how harmful it will be to the vast majority of their constituents and to the state as a whole.
Here's what Alabama is looking at if Republicans continue to reject the Obama plan — which has already passed the Senate and which our GOP representatives oppose — and let the middle class tax cuts expire:
- An Alabama family of four earning the median income of $63,400 would see its income taxes rise by $2,200 starting next month.
- The retail industry, which employs 230,200 people in Alabama, will get a kick in the teeth just as consumer confidence and spending has started to pick up. And the longer the “fiscal cliff” posturing goes on, the more it will hurt retail jobs and bottom lines.
- Per a new report (“The Middle-Class Tax Cuts’ Impact on Consumer Spending and Retailers.”) from the President’s Council of Economic Advisers, the resulting consumption decline if middle class tax cuts are not extended could slow the growth of Alabama's real GDP by 1.8 percentage points. The report estimates consumers in Alabama would spend nearly $2.9 billion less than they otherwise would have in 2013 just because of higher taxes.
99 percent of Alabama families make less than $250,000 a year and would see no income tax increase under the President’s plan. 98 percent of all Americans, and 97 percent of all small business owners, won’t see their income taxes go up a single dime under the Obama plan. But will our Republicans vote on it? No. Alabama's GOPers, along with their leadership, are holding the middle class tax cuts hostage so the top 1% won't have to pay their fair share.
Republicans are on a course to hurt Alabama's already fragile economy and cost Alabama families an average of $2200 more in taxes next year. Who are they representing, you or a handful of millionaires and billionaires?
Call your representative today and let him or her know you want them to end the tax cuts for the richest 2% of Americans and extend them for all the rest of us. The Senate has already passed this bill. The President has said he will sign it. The House could pass it today, removing all the uncertainty for 98% of Americans and an even greater percentage of Alabamians — except that Republican leaders have already sent them home for the week.
I know, how many average Alabamians get a 2.5 day work week? But that's OK. While you have your representative on the phone, tell him or her to go back to work, and stay there this time, until they get the people's business done.
Make the call. Do it now.