Median Louisiana family of four could pay an extra $2,200 in taxes if Bush tax cuts aren't extended.
Washington -- President Barack Obama on Wednesday again called on Congress to extend Bush-era tax cuts for families with incomes of $250,000 or less. The White House released data Wednesday night on what would happen to Louisiana taxpayers if Congress allows the tax cuts to sunset on Dec. 31.
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President Barack Obama urges Congress on Wednesday to extend the Bush tax cuts for American families earning up to $250,000 a year.
According to the President's Council of Economic Advisors, a median-income Louisiana family of four earning $68,900 annually could see income taxes rise by $2,200. The White House said it couldn't be precise because taxes vary due to different deductions claimed by taxpayers.
The president's economic advisors also estimated that consumers in Louisiana, faced with higher taxes, would cut back on their purchases by nearly $2.8 billion in 2013.
Nationally, consumers could be expected to spend $200 billion less, the council reported.
Throughout the presidential campaign, Obama said that if re-elected he would extend the Bush tax cuts for families earning less than $250,000, but allow income tax rates to rise to levels in effect during the Clinton administration for all income above that amount.
He said the middle class is still struggling and needs the tax relief, while wealthier Americans can get by without the lower tax rates that contribute to the growing national debt.
But most Congressional Republicans want the Bush tax cuts extended for all income levels, arguing higher rates on higher earners would impact small businesses that file individual tax returns.
During a House GOP meeting Tuesday, Rep. Tom Cole, R-Okla., suggested Republicans agree to extend the tax cuts for those earning $250,000 or less so that middle class Americans can go through the Christmas gift season not worrying that their taxes will rise next year. But many Republicans believe that doing so would take away GOP bargaining clout as the White House and House GOP majority try to reach a deal to avoid the so-called fiscal cliff - the end of all the Bush tax cuts, along with major spending reductions in defense and domestic programs.
Speaker John Boehner, R-Ohio, said he respects Cole and considers him a close friend, but argued for a comprehensive deal with the White House.
"You know, going over the fiscal cliff will hurt our economy and will hurt job creation in our country," Boehner said. "Republicans are committed to continuing to work with the president to come to an agreement to avert the so-called fiscal cliff."
"It's one reason why we believe that we've put revenue on the table as long as it's accompanied by serious spending cuts to avert this crisis."
Obama, meeting with business leaders Wednesday, made the same point, but disagreements continue over his determination to bring back higher Clinton-era income tax rates or something close to them for families earning over $250,000 and GOP insistence any increased revenue come by eliminating some tax deductions.
Obama said the GOP shouldn't hold middle class taxes in abeyance while negotiations proceed.
"There is no reason why taxes on middle-class families should go up," Obama said during a meeting of his cabinet. "It would be bad for the economy. It would be bad for those families."
"In fact, it would be bad for the world economy. And so I think it's very important that we get that resolved, and I am very open to a fair and balanced approach to reduce our deficit and provide the kind of certainty that businesses and consumers need so that we can keep this recovery going."