The National Economic Council and the Council of Economic Advisors recently released a report entitled " The Middle-Class Tax Cuts’ Impact on Consumer Spending and Retailers," which analyzes the potential implications of the Budget Control Act of 2011 should Congress not reach a consensus by the end of this year. Popularly known as the "Fiscal Cliff," the Budget Control Act of 2011 lays out provisions for dramatically reducing the National deficit and will go into effect at the end of this year if Congress cannot agree on other alternatives. These initiatives include substantial spending cuts across federal programs and the termination of a several key tax breaks. If Congress does not act soon, 98 percent of Americans will ring in the new year with income tax increases. On average, middle class households would pay an additional $2,200 in taxes in 2013. The CEA estimates that this will result in a $200 Billion reduction in consumer spending, hurting businesses across the country. Even during this holiday season, retailers hope that the threat of tax increases will not deter their customers. The President is urging Congress to not let disagreements over tax policies for higher income earners further delay action where the parties have already found a consensus: the extension of tax breaks on the middle class. For more information, read the full article here .
Congress's decisions over the next few weeks will have significant implications for the Asian American Pacific Islander community, many of whom are middle class families and small business owners. The President is calling all Americans to push Congress to act and extend middle class tax cuts. The White House has launched #My2k, a campaign encouraging citizens to describe how the tax increase would affect them through the White House website or Twitter handle #My2k. Please take the time to make your voice heard and also promote #My2k to all your friends, family, and networks.