Tax Cut and Unemployment Extensions Impact on PA

from the inbox:

With the clock ticking toward tax hikes for all Pennsylvania residents and a loss of benefits for people out of work for an extended period of time, the President is repeating his call for the House of Representatives to act quickly on a bipartisan package of tax cuts and an extension of unemployment insurance benefits.

“This tax cut plan, while not perfect, will help to grow our economy and create jobs in the private sector. It will help to lift up middle class families, who will no longer need to worry about a New Year’s Day tax hike. It will offer emergency relief to help tide folks over until they find another job. And it includes tax cuts to make college more affordable; help parents to provide for their children; and help businesses, large and small, to expand and hire,” President Obama said today. “We worked hard to negotiate an agreement that’s a win for middle-class families, and a win for our economy, and we can’t afford to let it fall victim to delay and defeat. So, I urge Members of Congress to pass these tax cuts as swiftly as possible.”

The stakes are significant for Pennsylvania. If approved, 6.7 million Pennsylvania residents will receive more money in their paychecks as a result of the payroll tax cut – something nearly every mainstream economist agrees is one of the most powerful things that can be done to boost economic growth. Pennsylvania residents also would benefit from the continued American Opportunity Tax Credit that helped 335,000 families across the state last year. Additional tax cuts in the legislation also geared at middle-class families include the Earned Income Tax Credit, that helps families to climb out of poverty, and the Child Tax Credit extension, that will make sure families don’t see their taxes jump by up to $1,000 for every child.

Additionally, this bipartisan legislation would strengthen the safety net for 353,989 residents who are at risk of having their unemployment insurance (UI) benefits evaporate without Congressional action. Across the country, this month alone, 2 million Americans will lose their UI coverage if Congress fails to act.

With Senate approval, this afternoon the measure moves to the House of Representatives for consideration.

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FACT SHEET: THE BIPARTISAN TAX CUT LEGISLATION AND PENNSYLVANIA

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 provides vital tax relief and investments in our workers that will create jobs and accelerate economic growth. The bill has three key accomplishments:

· Working families will not lose their tax cut. A typical working family faced a tax increase of over $3,000 on January 1. That’s avoided under this bill, and working families won’t see their tax cuts go away next year.

· Focused on high impact job creation measures. The bill includes some of the best measures for jumpstarting growth and job creation, including a full year of emergency unemployment insurance benefits, a 2 percent payroll tax cut for working families and a continuation of tax credits for working families. This is on top of growth generated by extension of the middle-class income tax rates.

· Does not worsen the medium- and long-term deficit. These are responsible, temporary measures to support our economy that will not add costs by the middle of the decade. The President does not believe it is affordable to make the high-income tax cuts permanent and will continue to make his case for why we cannot extend these measures beyond 2012.

For Pennsylvania, the bipartisan tax cut legislation provides a significant boost for middle-class families.

· 6.7 million Pennsylvania residents would see more money in their paychecks because of the payroll tax cut.

· The American Opportunity Tax Credit extension would make it easier for families to afford to pay for their children’s college. Last year alone, 335,000 Pennsylvania families benefited from this tax credit.

· 353,989 residents, struggling to find work as the economy climbs out of the recession, would see their unemployment insurance benefits extended. Without action, UI benefits for at least 2 million Americans would disappear this month alone, with millions more in jeopardy in the weeks ahead.