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An increase in their taxes on January 1.
You're go at this time both parties came together to cut payroll taxes for the typical American family by about a thousand dollars.
But as soon as this year ends.
So does that tax cut.
If congress fails to -- this tax cut before them that same family we'll see a tax hike about a thousand dollars a year.
There are many folks either in the middle class or those trying to get into the middle class who can afford to give up a thousand dollars.
Not right now.
That's -- congress must act.
Although the unemployment rate went down last month.
Our recovery is still fragile.
The situation in Europe has added to that uncertainty.
That's why the majority of economists.
Believe it's important to extend.
The payroll tax cut.
And those same economists would lower their growth estimates.
For our economy if it doesn't happen.
Not only is extending the payroll tax -- important for the economy as a whole.
It's obviously important for individual families.
It's important insurance for them against the unexpected.
It will help families pay their bills -- will spur.
It will spur hiring.
And it's the right thing to do.
And that's why my jobs so -- -- not only extending the tax cut.
But expanding it to give a typical working family tax cuts of 15100 dollars next -- There was paid for by asking.
A little more from millionaires and billionaires.
Few 100000 people paying a little bit more -- not only extended the existing payroll tax cut but expanded it.
Last week virtually every senate Republicans.
Voted against that tax cut.
Now I know many Republicans have sworn an oath never to raise taxes.
As long as they -- How could it be that the only time there's a catch.
When it comes to raising taxes on middle class -- -- How can you fight tooth and nail to protect.
High end tax breaks for the wealthiest Americans.
And yet barely lift a finger to prevent taxes going up for a 160 million Americans.
Really need the help.
It does make sense.
Now the good news is I think the American people's voices -- start to get through.
In this town I -- -- last week speaker Boehner said this tax cut helps the economy because it allows every working American to keep more of their money.
I know that over the weekend senate Republican leader said we shouldn't raise taxes on working people going in the next year.
I couldn't agree more.
And I hope that the rest of their Republican colleagues come around and join Democrats.
To pass these tax cuts and put money back into the pockets of working Americans.
Some Republicans who have pushed back against the idea that savers payroll tax -- -- -- said.
That we've got to pay for these tax cuts.
And I just point out that they haven't always felt that.
Over the last decade.
They didn't feel the need to pay for massive tax cuts for the wealthiest Americans which is one of the reasons that we face such large deficits.
Indeed win the Republicans took over the house at the beginning of this year.
They explicitly change the rules to say that tax cuts don't have to be -- So.
Forgive me a little bit of confusion.
When I hear folks insisting on tax cuts being paid for having -- -- We all recognize we've got to make progress on the deficit.
And I'm willing to work with the Republicans to extend the payroll tax cut in a responsible way.
What I'm not willing to do is to pay for the extension in a way that actually hurts the economy.
As Americans are well aware this -- -- Simon mall nearly one trillion dollars in spending cuts -- another trillion dollars in cuts in the pipeline.
And it would be irresponsible.
To now make additional deep cuts in areas like.
Education or innovation or -- basic safety net.
That are critical of the economy.
In -- -- pay for an extension of the payroll tax cut.
We're gonna do that or we're gonna undo the budget agreement that I signed just a few short months ago.
Finally the millions of Americans still looking for work.
It would be a terrible mistake for congress to go home for the holidays.
Without extending unemployment insurance.
If that happens then in January -- be leaving one point three million.
Americans out -- A lot of families this.
Emergency insurance is the last line of defense between hardship and catastrophe.
Take -- money out of economy now would do extraordinary harm to the economy and if you believe that government shouldn't take.
Money out of people's pockets.
I hope members of congress realize that it's even worse when you take it out of pockets of people who are unemployed and out there.
Pounding the pavement looking for work.
We are going through what is still an extraordinary time.
In this country and in this economy and I get letters every single day I talk to people.
Who say to me this unemployment insurance is what allowed me to keep my house before.
I was able to find another job.
This is what allowed me to still put gas in the tank to take my kids to school.
We cannot play games.
-- unemployment insurance when we still had an unemployment rate that is way too -- I put -- whole range of ideas for reform of -- unemployment insurance system and I'm happy to work with Republicans on those issues.
But right now the most important thing is making sure that that gets extended as well.
This isn't just something that I want.
This isn't just a political fight independent economists.
Some of whom have in the past worked for Republicans.
Agree that if we don't extend a payroll tax cut and we don't extend unemployment insurance.
It will hurt our economy.
The economy will grow as fast.
And we won't see hiring improve as quickly.
We'll take money out of pockets of Americans just -- time when they need it.
-- harm businesses that depend on the spending just at the time when the economy is trying to get some traction in this were covered.
But -- us and -- is self inflicted wound.
So my message to congress does this.
Keep your word of it.
American people and don't raise taxes on them right now.
Now's not the time to slam on the brakes at the time to step on the gas.
Now's the time to keep warning the economy.
To keep creating jobs to keep giving working Americans -- that they need.
As the time to make a real difference.
In the lives of the people who sent us so let's go to war.
Thank you very much.
Where they have it there is no deal as of yet the president calling and Republicans to make one.
They are at issue right now in congress over whether to extend a payroll tax holiday.
It amounts to about 15100 dollars a year for a -- that makes 50000.
A year I've got my numbers correct via a family making 50000 dollars you would -- about 15100 bucks according to the Democrats this thing was passed last year.
As a new tax break it was supposed to be somewhat temporary and now the president and the Democrats would like to extend it given the economic situation the Republicans have also said.
-- open to that but they want to see it paid for.
And the Democrats have responded by saying let's do that with a surtax on millionaires the Republicans came back and said you wanna -- a permanent tax to pay for a temporary band aid.
That doesn't make sense and now they've gone back and forth.
About what to do and you heard the president saying there let the Republicans didn't always feel so.
Committed to paying for tax cuts in particular the bush tax cuts.
That they got extended at the end of last year also speaking to -- need to extend unemployment benefits set to expire for sound at the end of this year.
The package right now to extend that payroll tax would cost 480 billion dollars to the Americans.
And there is a question very very good question about whether he can get support particular.
And house for that by coming up --
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