Checking the facts on President Obama and the ‘fiscal cliff’ deal.
There are some important facts which President Obama fails to mention in a Web video concerning the fiscal deal that leave the wrong impression concerning its impact on both the deficit and the taxpayers:
The president tells everyone that “middle-class families” Re not going to have to pay anywhere up to $2000 in additional taxes this coming year. This is certainly true in regard to income taxes however Obama fails to also tell the public about a payroll tax cut expiring. That expiration means that approximately 77% of all taxpayers are going to be paying more taxes this year. That number includes those who earn between $75000 and %100,000 who will be paying up to $1200 additional. This will come as quite a shock to this group who fit well in the broad definition of middle class which the president consistently uses.
President Obama also tells the public that this agreement will “reduce the deficit”. The truth is that over the next ten years approximately four trillion dollars will be added to that deficit due to Bush tax cut extensions for all but the top one=percent of taxpayers. This deal will actually ‘reduce the deficit’ if it is compared to what it would have been had the Bush tax cuts been extended for every single taxpayer.
The fact of the matter is that all of the president’s comments on the fiscal-cliff dealings may leave the impression that most people will be paying the same taxes as last year. This however is just not correct. The president leaves out the fact that a two year Social Security payroll tax deduction was permitted to expire resulting in people paying more this year in taxes.
The Fiscal Cliff Fact Check