|S&P 500 Large Cap Index (stockcharts.com)|
|30-year Treasury Bond Yield index (stockcharts.com)|
Speaker Boehner: Where Are the Democrats’ Spending Cuts? (selected text from Speaker.gov)
“You know, going over the fiscal cliff will hurt our economy and will hurt job creation in our country. Republicans are committed to continuing to work with the president to come to an agreement to avert the so-called fiscal cliff.
“It’s one reason why we believe that we’ve put revenue on the table as long as it’s accompanied by serious spending cuts to avert this crisis. We believe that this fits the president’s request for a balanced approach to this issue, and we’re going to continue to work with the president to try to resolve this in a way that is fair for the American people.
“We all know that we’ve had this spending crisis coming at us like a freight train and it has to be dealt with. And in order to try to come to an agreement Republicans are willing to put revenue on the table, but it’s time for the president and Democrats to get serious about the spending problem that our country has. But I’m optimistic that we can continue to work together to avert this crisis, and sooner rather than later.”
Remarks by the President on Extending Tax Cuts for the Middle Class (selected text from the transcript at WhiteHouse.gov)
"... Our ultimate goal is an agreement that gets our long-term deficit under control in a way that is fair and balanced. That kind of agreement would be good for our businesses; it would be good for our economy; it would be good for our children’s future. And I believe that both parties can agree on a framework that does that in the coming weeks. In fact, my hope is to get this done before Christmas.
But the place where we already have, in theory at least, complete agreement right now is on middle-class taxes. And as I’ve said before, we've got two choices. If Congress does nothing, every family in America will see their taxes automatically go up at the beginning of next year. Starting January 1st, every family in America will see their taxes go up.
A typical middle-class family of four would see its income taxes go up by $2,200. That's $2,200 out of people's pockets. That means less money for buying groceries, less money for filling prescriptions, less money for buying diapers. (Laughter.) It means a tougher choice between paying the rent and paying tuition. And middle-class families just can’t afford that right now.
By the way, businesses can’t afford it either. Yesterday, I sat down with some small business owners who stressed this point. Economists predict that if taxes go up on the middle class next year, consumers will spend nearly $200 billion less on things like cars and clothes and furniture -- and that obviously means fewer customers. That cuts into business profits. That makes businesses less likely to invest and hire, which means fewer jobs. And that can drag our entire economy down.
Now, the good news is there’s a better option. Right now, as we speak, Congress can pass a law that would prevent a tax hike on the first $250,000 of everybody’s income. Everybody's. And that means that 98 percent of Americans and 97 percent of small businesses wouldn’t see their income taxes go up by a single dime. Ninety-eight percent of Americans, 97 percent of small businesses would not see their income taxes go up by a single dime.
Even the wealthiest Americans would still get a tax cut on the first $250,000 of their income. So it's not like folks who make more than $250,000 aren't getting a tax break, too. They're getting a tax break on the first $250,000 just like everybody else.
Families and small businesses would, therefore, be able to enjoy some peace of mind heading into Christmas and heading into the New Year. And it would give us more time then next year to work together on a comprehensive plan to bring down our deficits, to streamline our tax system, to do it in a balanced way -- including asking the wealthiest Americans to pay a little more, so that we can still invest in things like education and training, and science and research.
Now, I know some of this may sound familiar to you because we talked a lot about this during the campaign. This shouldn’t be a surprise to anybody. This was a major debate in the presidential campaign and in congressional campaigns all across the country. And a clear majority of Americans -- not just Democrats, but also a lot of Republicans and a lot of independents -- agreed we should have a balanced approach to deficit reduction that doesn’t hurt the economy and doesn’t hurt middle-class families. And I’m glad to see -- if you've been reading the papers lately -- that more and more Republicans in Congress seem to be agreeing with this idea that we should have a balanced approach.
So if both parties agree we should not raise taxes on middle-class families, let’s begin our work with where we agree. The Senate has already passed a bill that keeps income taxes from going up on middle-class families. Democrats in the House are ready to vote for that same bill today. And if we can get a few House Republicans to agree as well, I’ll sign this bill as soon as Congress sends it my way. I've got to repeat, I've got a pen. I'm ready to sign it. (Applause.)..."
Previous post: Thomas Lee Says Fiscal Cliff Deal + Mutual Fund Capitulation = $SPX Rallies Into Year-End.