Pelosi: GOP Out To Get Middle Class

House Minority Leader Nancy Pelosi (D-Calif.) Thursday blasted Republican efforts to offset an extension of payroll-tax cuts set to expire at the end of December, but said House Democrats remain open to “reasonable, pay-for” options.

Democrats sought to pay for the tax holiday with a 3.5 percent surtax on incomes exceeding $1 million. Republicans countered by proposing a freeze on federal employees’ salaries and downsizing the federal workforce by cutting 200,000 jobs as a means to pay for the tax break. 

The House’s top Democrat, however, shied away from endorsing Republicans’ proposal, arguing that the offsetting proposal would eliminate hundreds of thousands of jobs. 

“It doesn’t make any sense, except it is consistent with the Republican principle that they are here for the one percent,” Pelosi said. “But yes, we would certainly be open to reasonable pay-fors for the tax cut.”

Pelosi continued her tirade against GOP efforts to offset the payroll-tax cut and said Republicans “are out to get the middle class.”  

“I don’t know what the middle class ever did to the Republicans that they’re so out to get them,” Pelosi said. “But whether it’s job creation, economic growth, the tax code and the rest — the deck is getting stacked against the middle class.”

Social Contract Guiding Obama's Economic Efforts, Says Biden Adviser

By Kyle LaFleur

The social contract in the wake of the United States’ economic recession was the focus of an address given on Tuesday by Jared Bernstein, the top economic advisor to Vice President Joe Biden.

The social contract, according to Bernstein, is “a consensus wherein the majority agrees to abide by a set of rules. They agree because absent these rules, they and their property and their family would be in danger.” 

“I view the great recession as the outcome of a failed social contract,” he added.

Bernstein, who has authored two books on economic issues facing middle-class Americans, argued that there are two types of social contract systems: The first, he said, is ‘YOYO’ (you’re on your own), which he claimed is weaker and reliant upon privatization and defunding of government regulations. The second he said, is ‘WITT’ (we are in this together), which he described as a broader social contract and the path being used by the Obama administration to restore the country’s economic balance.

On other issues, Bernstein credited the 2009 Recovery Act with helping stabilize the nation’s economy, but warned that it will take time for all the benefits of the legislation to be realized.

“The fact that you’ve turned around only means you’re moving in the right direction, it doesn’t mean you’ve arrived at your destination,” he said. “Families are clearly still struggling and we need to do all we can to build on the existing momentum, something the President and our economic team continue to focus on every day.” 

Obama Pushes Republican Senators To Look Past Midterm Elections

President Barack Obama pushed Senators to ignore the fact that midterm elections are right around the corner and seize the opportunity to lend a helping hand to the backbone of America - the middle class.

The president told reporters Monday that the time has come “to stop holding workers laid off in this recession hostage to Washington politics.”

Obama called out Republican Senators saying many of them supported extending emergency relief in the past, but have now decided to withdraw that support despite a longstanding tradition of providing the unemployed relief during Republican and Democratic presidencies. 

“A majority of Senators have tried, not once, not twice but three times to extend emergency relief on a temporary basis,” Obama said. “Each time a partisan minority in the Senate has used parliamentary maneuvers to block a vote denying millions of people out of work much needed relief.”

The president urged Senators to stop focusing on the upcoming midterm elections and to start thinking of middle-class Americans. 

“It’s time to do what’s right,” Obama said. “Not for the next election, but for the middle class.”

Extended unemployment benefits and small business tax cuts are only pieces of a larger package the Senate will vote on Tuesday. The president reminded members of the media that extended unemployment benefits is an issue that should be met with bipartisan support, even if midterm elections are just a mere four months away.

“Times are hard right now… I know it’s getting close to an election but there are times where you put elections aside, this is one of those times,” Obama said.

Child Care Tax Credit Covers An Additional 200,000 Families

By Monique Cala University of New Mexico/ Talk Radio News Service

The Middle Class Task Force announced Monday a near doubling of the Child and Dependent Care tax credit for families making less than $85 thousand a year.

The Vice President's Chief Economic Adviser, Jared Bernstein, discussed the newly announced plan in a White House conference call with reports, and explained that the program will reach an additional 200 thousand families.

“The middle class can stretch a lot higher up the income scale than some of these programs previously reached,” said Bernstein. “Full time care for an infant can cost more than $10 thousand a year. Monthly child care fees for two children can often be higher than your rent. So these are serious budget issues affecting millions of working families.”

The budget for the child care tax credit and other progrms proposed by the Middle Class Task Force will be released on February, 1st. Additional plans include reducing school loans to 10 percent of the students income after graduation, with debt forgiveness after 20 years, or 10 years if a student decides to work in public service.

A full list of programs announced today can be found at www.astrongermiddleclass.gov

Health Care Costs Have Doubled In Past Decade, Says Sen. Klobuchar

By Laura Smith, University of New Mexico-Talk Radio News Service

During a press conference Tuesday on the importance of health care reform for middle class Americans, Sen. Amy Klobuchar (D-Minn.) said that health care costs have more than doubled in the past decade and could grow further.

“The average American spent $6,000 on their health care just ten years ago. Now the average American family is spending $12,000, and in ten years from now, without any bending of the cost curve, they will be spending $24,000 a year. If we do not act, these costs will break the backs of the American people,” Klobuchar said.

The senator attributed the numbers to Sen. Ben Cardin (D-Md.)

Klobuchar went on to outline what she would like to see brought about through significant reform.

“It is my hope that no one will have to choose between necessary medical care, and their mortgage," said Klobuchar. "For the middle class, reform will mean stable coverage that can’t be taken away, stable costs that won’t eat away at paychecks and better care."