NASHVILLE, Tenn. — The Tennessee Democratic Party is advocating for the extension of middle class tax cuts today following the release a National Economic Council of the White House state-by-state report that shows serious economic problems for hard-working Tennessee families if the extension fails.
Party chairman Chip Forrester said Volunteer State families living paycheck to paycheck cannot afford for Congress to play politics on the edge of a fiscal cliff.
“Today’s report by the National Economic Council is a critical reminder of what’s on the line for Tennessee’s families if Congress fails to extend tax cuts for the middle class by the end of the year,” Forrester said. “According to the report, inaction by Congressional Republicans will result in federal income tax hikes for 2.3 million middle-class families in Tennessee — along with 98 percent of American families and 97 percent of small businesses.”
Failure to reach a deal will also erode investments in the state economy, namely consumer spending and tax credits for college and small businesses.
“More specifically, a typical median-income family of four in Tennessee could see their taxes go up by $2,200 — with families receiving a reduced Child Tax Credit and 761,000 low- and moderate-income working families with children losing access to this credit altogether, costing them an average of $1,000 a year,” Forrester said. “More than 200,000 middle-class families across the state will no longer get the support they need to pay for college through the American Opportunity Tax Credit, and Tennessee small businesses would only be able to claim immediate tax deductions for $25,000 — as opposed to $250,000 — of new investments.”
Forrester is urging members of Congress from Tennessee to work with President Obama, who has laid out a budget plan that protects middle class families and reduces the deficit through a balanced approach.
“As the President has emphasized, this is not just about avoiding the looming fiscal cliff — it’s about laying the foundation for the long-term economic growth of the middle class and reducing the deficit in a balanced, responsible way,” Forrester said. “While President Obama remains committed to working with both parties to reach a compromise that moves our country forward, there is simply no reason to hold the economic security of Tennessee families hostage while we debate tax cuts for the wealthiest few.
“It’s time for Republicans in Congress to come to the table and help extend the middle-class tax cuts without further delay,” Forrester said.