U.S. Rep. John Dingell (D-15th District) this week backed a message from the White House that the end of current tax rates for the nation's middle class would hurt consumer spending and thus, the economy.
Income tax cuts currently in effect for families making less than $250,000 per year are set to expire Jan. 1. The U.S. Senate has passed a bill that would extend all income tax cuts, and the bill is supported by President Barack Obama and House Democrats, including Dingell.
In a statement released Monday, Dingell called on both parties in Congress to work together in order to extend current tax rates.
“Middle class families and our economy can’t afford a tax hike,” he said. “Congress needs to act in a bipartisan fashion to protect the middle class, ensure the wealthiest pay their fair share, and sustain the economic growth our country needs.”
Dingell's statement backs a report released Monday by National Economic Council and the Council of Economic Advisers, called The Middle-Class Tax Cuts’ Impact on Consumer Spending and Retailers.
The report alleges that the end of the tax cuts would result in an estimated income tax increase of around $2,200 for the average American household. That increase in taxes, they continued, would cause a $200 million drop in consumer spending in 2013.
According to the Detroit Free Press, talks on tax rates are stalled as the debate continues over whether tax rates should increase for Americans making over $250,000 per year.
"The President has called on Congress to take action and stop holding the middle class and our economy hostage over a disagreement on tax cuts for households with incomes over $250,000 per year," a statement from the White House read.