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EC from DC - December 7, 2012

December 7, 2012
EC from DC

 

 

Cleaver Banner (EC from DC)

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TAX CUTS FOR THE MIDDLE CLASS


According to the new White House report, income taxes are scheduled to go up for 2.1 million middle class Missouri families on January 1, when tax cuts such as the expanded Child Tax Credit, the 10 percent tax bracket, marriage penalty relief, and the American Opportunity Tax Credit for college expire. If those in the House don't permit action on the President's plan, already passed by the Senate, everyone's income taxes will go up, by as much as $2,200 for the typical middle income Missourian family (earning $70,700) with two children.

Both Democrats and Republicans agree that we must extend the middle class tax cuts. My colleagues across the aisle may believe that we need extra tax breaks for the top 2 percent, but I am not so sure. If we come together to extend tax cuts for every family, on income under $250,000, everyone gets a tax cut—even those making more than that amount.

You see, our tax brackets work like a staircase. Each step represents a higher level of income. Some people make enough money to make it up to the first step. Some people make enough money to get up a few steps. And some people make enough money to make it up to the very top of the stairs. The tax rates are different depending on what step you are standing on, but if we agree to extend the tax cuts for all incomes under $250,000, everyone who hit the first few steps will get a tax cut—even folks who made it to the top later on.

This week, I joined 177 of my colleagues in signing a discharge petition, led by Rep. Tim Walz (D-MN), to ask the House Leadership to hold an up-or-down vote on the Middle Class Tax Cut Act (H.R. 15). This legislation to enact the President's plan, which has already passed the Senate, would provide everyone with a tax cut on income up to $250,000, while asking the rich to pay their fair share by allowing taxes on income over $250,000 to return to Clinton-era rates.

If we agree to extend all the tax cuts, even those for the very rich, the folks who made it to the top just get an extra helping, way more than the rest of us. Economists agree, extending the middle cuts are important to the economy. But if we decide to extend the cuts for those at the very top, too, we do damage to the deficit and do nothing to create jobs or get growth going.

Instead of recklessly renewing all the tax cuts, we should provide certainty for the 114 million middle class families whose income taxes are scheduled to go up January 1st. There is simply no reason to wait, when more than 2.1 million middle-class Missourian families will be affected by this decision.


I Want to Hear From You


Unless Congress acts, hitting the so-called "fiscal cliff" would have a devastating impact on our community, raising taxes, slashing funding to our schools and ending unemployment compensation.

As you know, I believe it is in reaching out and finding compromise that we find a way to move forward, keep our economy on the right track, and increase employment for hardworking people in Missouri's Fifth District. I remain committed to the notion that ALL Americans should receive a tax cut on incomes up to $250,000. I also believe Social Security is an earned benefit, not an entitlement and should not be included in any talks of cuts.

According to the non-partisan Congressional Budget Office, going over the fiscal cliff would raise the unemployment rate from 7.9% to 9.1 % in the coming year. We cannot let this happen. We have seen 30 consecutive months of steady private sector job growth and our economy is rebounding. Under sequestration, many agencies would face dramatic cuts that would not be efficient or strategic. This would result in a loss of jobs, and a loss of the ability to serve critical functions that make a real difference in people's lives.

There are tough decisions ahead that need to be made. This is not a time for political games, harsh partisanship, or digging in and refusing to listen to valid ideas brought to the table. The proverbial can cannot be kicked down the road any longer.

What do you think Congress should do to avoid these cuts?

To view the survey, .

 


IN CASE YOU MISSED IT


Jobs, the economy, and the Fiscal Cliff were all at the top of the list of discussion Friday morning on MSNBC's Morning Joe. If you'd like to see the interview in full: Congressman Cleaver on Morning Joe.

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LATEST JOBS REPORT


The latest numbers from the Department of Labor show that we are continuing to move our economy in the right direction. To be sure, there is much work to do, but the November 2012 Jobs Report marks the 33rd consecutive month of private sector job growth.

Other highlights:

  • The unemployment rate dropped to 7.7%.

  • This is the lowest level in 4 years.

  • Businesses hired 147,000 new employees last month.

  • 4 years ago in November the economy lost 797,000 private sector jobs.

 

Unemployment Situation, October to November 2012

 

 

October 2012 Unemployment Rate

November 2012 Unemployment Rate

October 2012 Number of Unemployed

November 2012 Number of Unemployed

National

7.9%

7.7%

12.2 Million

12.0 Million

African American

14.3%

13.2%

2.7 Million

2.4 Million

Asian American

4.9%

6.4%

396 Thousand

530 Thousand

Latino

10.0%

10.0%

2.5 Million

2.4 Million

 

Unemployment Rate by Ethnicity
October 2008 – November 2012

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CIVILITY CORNER


Many in our Defense and Homeland Security Departments are rightly concerned about a rather primitive explosive device that mixes dynamite with radioactive material to create what is called a dirty bomb. Such a bomb, on explosion in a major U.S. city, would send radioactive material in small amounts into the atmosphere and expose our people, structures, water and land to radiation contamination.

Our intelligence community, the best in the world, has done a magnificent job in protecting our homeland from the dirty bomb as well as attempts to terrorize us in other ways.

While I do have remarkable concerns about a dirty bomb, my most immediate and bone chilling fear is a bomb so scary that I actually lie awake some nights contemplating its serious impact on our nation. Make no mistake, neither the watchfulness of the FBI nor the alertness of the American public can reduce our vulnerability from the bomb of which I speak. There are already hundreds of these bombs, well hidden in our nation's capital. Yes, these bombs which do enormous damage to the survival of this nation are hidden behind the teeth of Members of Congress. To be sure, these tongue bombs can blow up a delicate deal to heal our ailing economy or rip apart the magnificent multicultural make up of this great land. Borrowing from the tag line of the movie, The Fly: "Be afraid. Be very afraid." When our tongues are wagging wildly, pressing legislative progress will languish irresponsibly.


Cleaver
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Emanuel Cleaver, II
Member of Congress

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Issues:Budget and AppropriationsCivilityEconomy and Jobs