In a Web video, President Obama leaves out some key facts about the fiscal cliff deal, possibly leaving the wrong impression about its impact on taxpayers and the deficit:
- Obama boasts that “middle-class families” will not have to “pay upwards of $2,000 more in taxes this year.” That’s accurate for income taxes, but Obama doesn’t mention that the deal allowed a payroll tax cut to expire. About 77% of taxpayers will pay more in taxes this year — nearly $1,200 more for those earning between $75,000 and $100,000, a group that fits squarely in Obama’s broad definition of middle class.
- Obama says the agreement “will reduce the deficit.” In fact, the deficit will increase by about $4 trillion over the next 10 years because of the extension of the Bush tax cuts for all but those in the top 1% of taxpayers. The deal will “reduce the deficit” only compared with what it would have been if the Bush tax cuts had been extended for everyone.