The White House Blog

As the debate over the so-called "fiscal cliff" in Washington continues, much of the conversation centers on deficit reduction, revenues, and tax rates. But what is easily lost in that conversation is the very real meaning this has for families all across America. The fact is Hispanic-American families just can't afford tax increases right now, but that's what will happen if Congress fails to act. In fact the median Hispanic family of four would see their income taxes rise by $2,200. An astounding 99 percent of Hispanic families will be affected.

President Obama is committed to growing our economy from the middle out by ensuring a strong, secure, and thriving middle-class, and is proposing a balanced approach. There is no reason to hold middle-class families hostage while we debate tax cuts for millionaires and billionaires. Below you'll find a link to a fact sheet that shows how Hispanic families will be affected. We're also asking all of you to tell us what $2,000 means to your family's budget. Take a look at our #My2K page, and tell us on twitter what that money means to you.

And download the fact sheet on the Fiscal Cliff and Hispanic-American families here. 

There’s one thing in Washington that everyone agrees on: income taxes should not increase on middle class families. 

Middle class families are the heart and soul of America, and the driving force behind our economy. And today, the middle class lies at the center of the debate in Washington about jobs, taxes, and the deficit. If Congress does not act by year’s end, the typical middle class family of four will see their income taxes increase by over $2,000 - which means that much less money in a family budget for groceries for dinner, gas in the car or a holiday gift for a loved one.

Republicans, Democrats and Independents agree that the middle class should not see their income taxes rise. Yet, some Members of Congress are insisting that we hold up tax cuts for 98 percent of families in order to protect the top 2 percent of income earners in America.

Today, the White House National Economic Council releaseda state-by-state reports about the real-life impact of these tax increases on America’s middle class families if Congress fails to act by January 1. Not only will families across the country see an increase in federal income taxes, but families stand to lose out on expansions to the Child Tax Credit and the Earned Income Tax Credit. In addition, millions of families will no longer get help paying for college from the American Opportunity Tax Credit, which provides up to $10,000 over four years to help families afford college.  

Take this example for a typical family of four living in Texas:

A typical median-income Texas family of four: a married couple with two children earning

$65,900 would see a $2,200 tax increase.

• A tax increase of $1,000 because the Child Tax Credit will fall from $1,000 to $500 per child.
• A tax increase of $890 because of merging the 10 percent tax bracket into the 15 percent tax bracket.
• A tax increase of $310 because of the expiration of marriage penalty relief that provides a larger standard deduction for married couples.

Total Tax Increase on this Family if Congress Fails to Act = $2,200

The 2012 White House Holiday Card, designed by artist Larassa Kabel.

The 2012 White House Holiday card has arrived. And this year's card spotlights the beloved First Family's dog, Bo.

The card was designed by Larassa Kabel, a professional artist from Des Moines, Iowa. Ms. Kabel has been creating photorealistic prints, paintings and drawings for the past 8 years and was featured as a solo artist in the Des Moines Art Center's Iowa Artist Show in 2009, the Iowa Artist 2010 group show and many other solo and group shows in Iowa, Michigan, Texas, Florida and New York. Her work is in several private and corporate collections including Aviva, Wellmark Blue Cross Blue Shield, and the World Food Prize headquarters. She also has a much-loved dog at home, which is why she chose to feature Bo in this year’s White House Holiday card.

To learn more:

• Photo Gallery: First Lady Tribute Ornaments
• Joy to All: First Lady Michelle Obama Previews the 2012 White House Holiday Decor
• Bo Inspects the 2012 White House Holiday Decorations

President Barack Obama delivers remarks and takes questions from business leaders at the quarterly meeting of the Business Roundtable at the BRT in Washington, D.C., Dec. 5, 2012. (Official White House Photo by Pete Souza)

Today, President Obama spoke to members of the Business Roundtable, an association of CEOs of American businesses, and reiterated his plan to extend tax cuts for middle-class families.

He explained how preventing tax hikes for middle-class families is good for business leaders as well as the broader economy.

“If the companies in this room are doing well, then small businesses and medium-sized businesses up and down the chain are doing well," he said. "If companies in this room are doing well, then folks get jobs, consumers get confidence, and we're going to be able to compete around the world.”

Audience members listen as President Barack Obama delivers remarks during the White House Tribal Nations Conference at the Department of the Interior in Washington, D.C., Dec. 5, 2012. (Official White House Photo by Pete Souza)

Over the past four years, through tribal consultation and the White House Tribal Nations Conferences, President Obama and his Administration have worked to ensure that tribal leaders are directly involved in setting policy priorities. Today, President Obama is hosting the 2012 White House Tribal Nations Conference at the Department of Interior.

This conference continues to build upon the President’s commitment to strengthen the government to government relationship with Indian Country, by providing invited leaders from the 566 federally recognized tribes the opportunity to interact directly with the President and representatives from the highest levels of his Administration.  In conjunction with today’s event, the White House released a report, “Continuing the Progress in Tribal Communities,” that examines the President’s agenda and how this Administration, by working together with tribes, has made a difference for American Indians and Alaska Natives. 

If Congress fails to act before the end of the year, every family in the country will see their income taxes automatically go up at the beginning of 2013.

A typical middle class family of four will see their income taxes rise by $2,200. We can’t let that happen. Our families can’t afford it, and neither can our economy. 

The thing is, you don’t have to be an economist or economic expert to understand why that’s the case.

In 1961, First Lady Jacqueline Kennedy started the White House tradition of selecting an official holiday theme. For her daughter Caroline, Mrs. Kennedy created a Nutcracker-themed Christmas at the White House—and the tradition has lived on ever since. This year, the White House celebrates and pays tribute to past White House holidays with four unique trees in the Grand Foyer. Each tree is decorated with a collection of ornaments that best represent the holiday legacies of former First Ladies dating back more than 50 years to Mrs. Kennedy, and in the gallery above you can see some of the ornaments chosen to highlight past holidays.

First Lady Michelle Obama continues the tradition with this year’s theme “Joy to All.”

It celebrates the many joys of the holiday season: the joy of giving and service to others; the joy of sharing our blessing with one another; and of course, the joy of welcoming our friends and families as guests into our home over the next several weeks.

President Barack Obama delivers remarks to the Nunn-Lugar Cooperative Threat Reduction symposium held at the National Defense University at Fort McNair in Washington, D.C., Dec. 3, 2012. Joing the President on stage are, from left: Defense Secretary Leon Panetta; former Sen. Sam Nunn, D-Ga.; and Sen. Richard Lugar, R- Ind.(Official White House Photo by Sonya N. Hebert)

On Monday, President Obama traveled to the National Defense University to mark the 20th anniversary of what he called "one of the country’s smartest and most successful national security programs" -- the Nunn-Lugar Cooperative Threat Reduction Program for the destruction of weapons of mass destruction in the former Soviet Union.

And after celebrating some of the accomplishments of that program, the President discussed the need to continue that nonproliferation work in the decades ahead.

"We simply cannot allow the 21st century to be darkened by the worst weapons of the 20th century," he said. "And that’s why, over the past four years, we’ve continued to make critical investments in our threat reduction programs -— not just at DOD, but at Energy and at State. In fact, we’ve been increasing funding, and sustaining it. And even as we make some very tough fiscal choices, we’re going to keep investing in these programs —- because our national security depends on it."

President Obama also delivered a specific message to Syrian President Bashar al-Assad.

"On Syria, let me just say this. We will continue to support the legitimate aspirations of the Syrian people -— engaging with the opposition, providing with -- providing them with the humanitarian aid, and working for a transition to a Syria that’s free of the Assad regime," the President said. "And today, I want to make it absolutely clear to Assad and those under his command: The world is watching. The use of chemical weapons is and would be totally unacceptable. And if you make the tragic mistake of using these weapons, there where be consequences, and you will be held accountable."

President Obama concluded his remarks by telling the story of a trip he took to the Ukraine with Senator Richard Lugar when both men were in the Senate.

"We went to a facility, an old factory," he said. "We walked down these long, dark corridors. Finally, we came across some women, sitting at a worktable. On it were piles of old artillery shells. And the women were sitting there, taking them apart. By hand. Slowly. Carefully. One by one."

"It took decades -— and extraordinary sums of money -- to build those arsenals," President Obama told the audience today. "It’s going to take decades -- and continued investments --to dismantle them."

President Barack Obama participates in a Twitter #My2k live question and answer session in the Roosevelt Room of the White House, Dec. 3, 2012. (Official White House Photo by Pete Souza)

If Congress doesn’t act, a typical middle-class family will see their taxes go up by about $2,000. Last week, President Obama began calling on Americans to make their voices heard and share what $2,000 means to families across the country.

And today, the President connected directly with the Americans who are speaking out about these tax cuts. During a live Twitter Q&A from the Roosevelt Room of the White House, President Obama explained why Congress must act and encouraged people around the country to continue to add their voices to the debate.