Dec. 6-7, 2010 Reactions to Obama Agreement on Tax Cuts and Unemployment Benefits

Washington, D.C. — Speaker Nancy Pelosi issued the following statement today on President Obama’s tax proposal:

“The tax proposal announced by the President clearly presents the differences between Democrats and Republicans. Any provision must be judged by two criteria: does it create jobs to grow our economy and does it add to the deficit?

“The Democratic provisions will create jobs and help 155 million workers through tax cuts for the middle class, helping working families who are struggling and growing the economy.

“The Republican demands would provide tax cuts to the millionaires and billionaires, fail to create jobs and increase the deficit. And to add insult to injury, the Republican estate tax proposal would help only 39,000 of America’s richest families, while adding about $25 billion more to the deficit.

“Republicans have held the middle class hostage for provisions that benefit only the wealthiest 3 percent, do not create jobs, and add tens of billions of dollars to the deficit.

“We will continue discussions with the President and our Caucus in the days ahead. Democratic priorities remain clear: to provide a tax cut for working families, to promote policies that produce jobs and economic growth, and to assist millions of our fellow Americans who have lost their jobs through no fault of their own.”

WASHINGTON, D.C. – U.S. Senate Republican Whip Jon Kyl made the following statement today regarding the announced agreement on an extension of existing tax rates:

“Tonight’s announcement marks an important first step in giving all American families and businesses the certainty that their taxes will not increase on January 1. While I wanted the rates to be made permanent, the current political makeup of this lame-duck Congress would not allow that. What is important now is that we avert a massive tax increase that would further depress an already frail economy.”

Washington, DC – Today, John Podesta, President and Chief Executive Officer of the Center for American Progress, issued the following comment on the tax extensions and unemployment insurance compromise announced yesterday:

Progressives need to be clear and honest about what just happened on taxes and the economy. Since the midterm election, it has been clear that the Congressional Republican Leadership was perfectly prepared to see middle and working class tax cuts expire and extended unemployment insurance end unless millionaire tax cuts were extended. All the talk about decoupling and extending middle class tax cuts from the cuts for millionaires was wishful thinking at best and just political talk at worst and no strategy could have produced it during the lame duck.

So President Obama was faced with a choice: he could trade a few more years of unnecessary and wasteful tax breaks for the rich in exchange for assistance to the unemployed, additional targeted tax relief for working families through the refundable earned income tax credit and child credit, and keeping tax rates low for 98 percent of Americans; alternatively he could allow taxes to rise on everyone starting in January. At the end of the day, President Obama decided he couldn’t abandon the millions of Americans who are struggling to keep their families afloat, who are diligently searching for work, and who simply cannot afford higher taxes right now, even though the Congressional Republican Leadership was more than happy to do so if we wouldn't pay their ransom.

It was a steep price, but this deal will mean about 2 million jobs saved or created over the next two years. On balance, I think the President was right to choose helping working Americans over a December conflagration. But the question hanging over Washington and the country today is how will he avoid repeating the same scenario being played out again and again for the next two years? That’s a question that is keeping me awake at night.

John D. Podesta is President and Chief Executive Officer of the Center for American Progress.

The Center for American Progress is a nonpartisan research and educational institute dedicated to promoting a strong, just and free America that ensures opportunity for all. We believe that Americans are bound together by a common commitment to these values and we aspire to ensure that our national policies reflect these values. We work to find progressive and pragmatic solutions to significant domestic and international problems and develop policy proposals that foster a government that is "of the people, by the people, and for the people."

"Watching the tax cut negotiation has been like watching a car crash in slow motion--Republicans successfully held the middle class and unemployed Americans hostage until they could make the nation's wealthiest 2 percent even richer. Now billionaires will get thousands of dollars in new tax breaks, while teachers get pink slips and hard-working Americans fall even further behind. Our 5 million members oppose this 'deal,' and--as last night's poll shows--so do a majority of Democratic donors and supporters. The President's commitment to bi-partisanship should not mean leaving principles behind, especially when the Progressive base is working to strengthen the economy for middle class Americans by making the wealthiest--many of whom helped to get us into this mess--pay their fair share. We hope Congress will pay careful attention to the message this poll sends--and stand up against this millionaire tax bailout.”

1,132 registered voters who identified themselves as having contributed time or money to help elect Barack Obama were interviewed December 6 in 20 US states on the eve of the tax-cut announcement. See a full list of states below. Research conducted by SurveyUSA of Clifton NJ, an independent research firm and the nation’s most prolific election pollster.

A poll of 1,132 voters across 20 states who have contributed either time or money to the Obama campaign in the past conducted by Survey USA on December 6, 2010 demonstrates that there is deep opposition to extending tax breaks for the highest earners.

Further, the poll shows clearly that these contributors are deeply opposed (74%) to a deal with Republicans to extend the Bush-era tax breaks for those making over $250,000 a year. The depth of opposition to a deal is severe with former Obama contributors saying that they are less likely (57%) to support Democrats who support this deal in 2012.

A majority of the former Obama contributors surveyed also say that the President’s deal also makes them less likely (51%) to contribute to his re-election campaign in 2012.

State’s included in research: California, Colorado, Florida, Illinois, Iowa, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Virginia, Washington, and Wisconsin.

Swift Action to Pass Agreement Will Help “Our Economy Break Out of This Slump,” Says Josten

WASHINGTON, D.C.—U.S. Chamber of Commerce Executive Vice President for Government Affairs, Bruce Josten, issued the following statement today on the framework of a bipartisan agreement to prevent tax hikes on all Americans, including small businesses:

“Enacting this bipartisan framework forged by the President and Congress is one of the best steps Washington can take to eliminate the uncertainty that is preventing our employers from hiring, investing, and growing their businesses. Although the greatest way to ease uncertainty is to permanently extend all of the current tax rates, we are very pleased that lawmakers of both parties were able to work together to provide a bipartisan path to prevent one of the largest tax increases in American history. An extension of all the marginal rates along with the extension of the expired business tax extenders, such as the R&D and active finance, and a sensible estate tax agreement will go a long way toward helping our economy break out of this slump and begin creating American jobs. While the devil is in the details, we are hopeful that Congress will swiftly pass this bipartisan framework to prevent a massive tax increase and help our economy move forward.”

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

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