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National Economic Council Director Gene Sperling on Obama’s effort to extend the Bush tax cuts for those making under $250,000 and how it would affe...
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Just talk to keep banks of US trust a few minutes ago about President Obama making -- push to extend the bush tax cuts for the middle class people making under 250000 dollars.
Just about an hour ago I -- Gene Sperling the director of the president's National Economic Council.
How the tax cuts will increase what we need and that's consumer demand and a healthier consumer here's what he -- What the president really said today.
At the White House was let's extend the tax cuts for.
Every American making under 250000.
For three reasons one.
Those are that families that are most often living paycheck by paycheck where that.
Check means a lot to them and could affect their sense of economic security confidence about the future.
To because they're people who are living paycheck by paycheck they're more likely to spend.
That money so typical family would be getting 2200 dollars there were likely to spend that money in there for have a more.
Positive effect on demand and growth and third in this was a major point the president made he recognize that we do have a big debate.
A debate that we'll get fought out in this election over whether we should extend tax cuts for those who are most well off or whether they should be asked to.
Contribute contribute to a larger and balanced deficit reduction plan he recognizes that -- is more likely to be solved at the ballot box in November.
But stresses what could we agree on right now what Democrats and Republicans all agree on.
Is that we should extend tax relief for the 90% of Americans who make under 250000.
So his -- today was let's do this let's provide this certainty to 98% of Americans that their tax relief.
Will be there next year and then we can still fight it out battle it out argue it out as we go into November.
The big question for a lot of people when it came to what the president announced today though -- was how did you compile the small business numbers -- was very clear he said.
But within this number of people who make below 250000.
That that would encompass 97%.
Of small businesses.
How did you guys compiled that number because some are saying wait a minute are you forgetting that a lot of small businesses file -- sole proprietor ships are these so called escorts.
Up which would not encompass that as far as it's concerned because many of those small businesses actually make more than 250000.
And hence would be hit with a new change in the tax rolls out.
That the fact is is that 97%.
And it might even be higher of small business owners however they're formed.
Make 250000.
And under so the overwhelming majority of small business owners would get tax relate this president also as you know at this very moment.
Has two measures -- that would give a 100% expensing.
To small and large businesses and would give small business owners an additional tax relief for any additional hiring or wage increases.
That they give this year.
So the real issue is that we are giving tax -- overwhelming number of small businesses in the president's got.
Small business tax cuts 90% of the time what happens is.
That some of our critics some of the Republicans will say that anyone who has any type of business our partnership or -- -- being com is.
A small business is that there -- mom and pop small business now we know that's not the case.
By their definition over half of the 400 most well off Americans -- would be labeled a small business the president of the United States.
Because he gets -- -- -- com from his book would be labeled a small business so I think that's a political argument.
But it does not reflect.
The tax situation of the vast vast majority of small business owners and entrepreneurs and our country.
Came from a political arm argument to a political reality your -- in the Republican controlled house is it really realistic to think that anybody is going to pass this plan by the president.
As many say that it's pretty much dead on arrival.
Well that may be -- initial instinct but now they're gonna have to ask themselves how they go back to their district back to town hall meetings.
And explain why they are holding up.
The president from giving tax relief for 98% of Americans the president has recognize that if the other side were to win in the next election that they may very well extend -- relief.
Opt for the well off if he wins that's not gonna be happy and you've got similar at least decide let's at least decide right now.
To extend tax relief for everybody makes under 250000.
That's what we all agree on when you're not -- -- not only fighting though the Republicans your fighting some Democrats of course congresswoman Nancy Pelosi and senator Chuck Schumer have said that they felt that the the threshold should be a million.
People making a million and -- should keep those tax cuts in place.
Well two point one what all of us agree on is that we should be giving tax relief to people who make under 250000.
Secondly.
Nancy Pelosi just put out a very supportive statement -- the president's proposal.
And for the majority leader had Harry Reid.
Made very clear that he supported the -- -- president's proposal.
To extend tax really just to those under 250000.
And that he plans on giving everyone a chance to vote on that so I think that the overwhelming.
Number of Democrats and in democratic leadership support the president's proposal and again.
Part of his whole focus is that.
Whatever people's different views are let's do what we all agree on which is extending tax relief to the 90%.
Of middle income Americans who make under 250000.
But politics.
-- will probably stand in the way of some of that as we watch this develop we will cover every step of the way that was Gene Sperling the director of the president's national economic.
