If Congress can't agree on a deal to avert the fiscal cliff, the president said taxes will rise by about $2,000 for the average family. NBC's Kristen Welker reports.
HATFIELD, Pa. -- President Obama today continued his efforts to push Congress to extend the Bush-era tax cuts for income below $250,000 with a visit to a toy factory here in suburban Philadelphia.
"We talked about this a lot... We had debates about it. There were a lot of TV commercials about it," Obama said. “At the end of the day, a clear majority of Americans -- Democrats, Republicans, independents -- they agreed with a balanced approach to deficit reduction and making sure that middle-class taxes don't go up.”
Recommended: White House 'surprised' by GOP 'surprise'
The non-partisan Tax Policy Center says if these tax cuts expire at the end of the year -- as they are set to do -- about 90% of Americans would paid more in taxes and middle-income families would see their taxes rise by about $2,000.
Obama didn’t present any new ideas in his first speech since House Republicans rejected Treasury Secretary Tim Geithner’s proposal that he presented in meetings with congressional leadership yesterday. That proposal included $1.6 trillion in tax increases, $400 billion in cuts to Medicare and other programs, and ending Congress' control of the debt limit.
But Obama did couch his frustration with Congress in humor.
“I've been keeping my own naughty and nice lists for Washington," he said at a Rodon Group plant that makes the popular K'nex brand of toys. "So you should keep your eye on who gets K'NEX this year. There are going to be some members of Congress who get them, and some who don't."

Susan Walsh / AP
President Barack Obama looks over a rollercoaster with K'NEX Inventor Joel Glickman, left, and Rodon Group President and Chief Executive Officer Michael Araten, right, during a tour of the company in Hatfield, Pa. Friday, Nov. 30, 2012.
Even the seriousness of the country’s fiscal health couldn’t keep the president from joking about his affable vice president.
Talking about the colorful toys in the factory, Obama said, “Joe Biden was in Costco. He wanted to buy some of this stuff. But I told him he had too much work to do. I wasn't going to have him building roller coasters all day long.”


The GOP leaves the workers no choice but to revolt against the corporations for keeping their wages below living wage standards!
The GOP doesn't care about the food workers! The GOP doesn't care for anyone but the rich who support their campaigns. The GOP does not represent Americans! Look at them! Does the GOP look like Americans to anyone? They just elected twenty one new white men to the Senate and into the House that any race or sex could have performed as well, if not better. How can Americans believe the GOP is "for the people" when they look nothing like the people they are supposed to represent?
Not one woman! Not one African American. Not one Indian. Not one poor man! The GOP is no representative of most of the Americans I know. It's like the GOP came from apartheid South Africa! Look at them! Do they represent you?
Where do you get that insane idea that the GOP doesn't care about the workers? Quit believing a bunch of lies. Your entire post is nothing but a lie and racist to boot. Think for yourself. Don't be so gullible.
Where did you get this garbage? Mr Ed. Matthews, Madlow. Go fly a kite.
Obama is telling freaking jokes and the laughter is not there like the campaign. Clearly he ONLY knows how to campaign. Not lead. Well this is about as funny as a turd in your soup.
I'm disgusted by this a$$hole and he is a real dangerous man.
You get the Government you deserve and don't even freaking respond with the typical "So you would have liked XYZ better?" I'm sick of the spin.
Obama should be in Washington in his office with no plans to come out unitl this is fixed.
His stand-up routine is just that. He's a joke.
So no one but me understands this is an opening bid? From here the GOP makes a Counter-Offer, Obama's people come back with their Counter-Offer and eventually we widdle it down to a compromise that both sides get things they need, but not everything they want. Thats how this process works.
And from what I have read 600 Billion in Medicare cuts 350 now and 250 in the next year. Is a Spending Cut. And I seem to recall another 300 Billion from elsewhere (Undefined budgets most likely) so nearly 1 Trillion is not cutting enough spending?
Granted he is asking for 200 billion in a Stimulus package but still that makes the Spending cuts add up to roughly 700 Billion dollars. That's in his opening offer. That is something.
If the GOP want more spending cuts they have to make a Counter Offer. But their not willing to say they want more then 600 billion in Medicare cut because even their people use it so their shooting themselves in the foot.
Is Medicare the ONLY program in the federal government that they can cut money from?? If they cut 600 Billion in medicare now and when obamacare kicks in they cut another 700 billion to help fund that, whats left?
I thought that the campaigning was all over. the best budget that Obama has ever come up with was turned down 99-0. He has a perfect record. How could anyone give him a blank check to spend all the more that he wants. Why is he not at work????
I don't know about that but the reason he wants control of the Debt Ceiling with due to the tactics last year by the House that dropped the US's Credit rating from 3 stars to 2 and now permanently lost ups 18.9 Billion dollars. All money we borrow now will have an increased interest rate.
And unlike most spending that 18.9 Billion is gone, at least the rest we can point to something to show where it went.
The rating is based on our debt. It is like going to a bank and you have 150% of your total income going out and see what your interest rate will be. Buy a clue. When debt is your game you pay through the nose!!
The point is these so called tactics of these parties are killing us slowly but surely. Both sides have done their damage. The Republicans are now desperate to hold something over the White House and this debt ceiling thing is all they have and if it means crashing the economy I have no doubt they would use it.
Those evil republicans. They don't think we can continue to spend more money than we have year after year after year after year. Ask any teenager, you just get ANOTHER credit card and you can continue to do it. Why should we expect our teenagers to live within their means, but not our government?
Democrats always overspend. So you say the best plan the democrats have is to keep spending??? What a plan. you talk about Jobs - what do you think Obamacare is going to do? Lost jobs, more debt and less taxes. Let me guess you are from a dumbocrat state.
Also why the Dems are not playing with the Reps? The Reps have burned a ton of bridges in the last 4 years.
They have passed the FEWEST number of bills in this congress then any in the last 60 years. They have Filibustered more times then any congress in history.
Just two bills the House killed was a jobs bill which would have worked to make 1.3 Million jobs by years end, and the Veterans act which would have made it more profitable for employers to hire returning vets. Why did they kill those bills? They where proposed by Democrats and thus had to go.
The Reps have been very Hostel to the Dems and now whine when the Dems don't play fair or nice with them.
Newsflash! We are 17 trillion in debt. Have you ever seen a country experiencing inflation? Maybe you voted for your welfare that is quickly going to run out.
I am not on welfare and even when I did lose my job I never went on unemployment. I am not a Mooch, unlike many who mooch off the government then vote Republican.
And we are 16.3 in debt. And I understand inflation but as I said this is an opening bid. The Republicans don't want to work with the President and would gladly crash this nation into the rocks along with the worlds economy rather then deal with him. And in turn that negativity has turned on them, the Dems now don't want to deal with them either.
Using government money to create jobs is GREAT if government money was free, but unfortunately, not EVERYONE believes that.
But by all means, make the republicans out as evil people for not wanting to do this.
So let's look at the two parties. Obama and the democrats flush the money down the towlet. So their crony's can open new bank account. Maybe you forgot Solyndra and other green companies that took the money and went defunct. the government lost their shirt on the gm bailout. Obama bought the stock high and sold low. Wow. Brilliant. the republicans say if you put people to work we give you money back (tax breaks), because we draw money from the people employeed (taxes). But keep the flushing going because Obama is in the chair. guess what the debt will be when he is gone. It is his policies. Can't blame it on anybody.
You do the math:
Obama says it will stimulate job creation by small businesses to keep their taxes the same, and ask those businesses that make more than $250,000/yr to make up the difference ( $1.6 trillion worth).
FACT - More than 60% of U.S. jobs are NOT created by small business, and therefore their employer's increased tax burden will HARDLY stimulate creation of new jobs by them.
FACT - Less than 40% of U.S. jobs are created by small businesses (the definition of small business, is less than 100 employees), and Obama is basing his $250,000/yr figure on the average profit of $200,000/yr for small businesses. UNFORTUNATELY, you can't base small business job creation (defined by number of employees) by a set average income if you don't share with the people how that $200,000/yr average is created. It is created by looking at every 2 small businesses that have ZERO employees and files a break-even taxable income that are offset by 1 small business that makes $600,000/yr. My wife and daughter both have a small business license to sell embroidery on the internet (this type of small business to suppliment a full-time job is STILL a small business and VERY prominent in the small business world). You try and find a small business with more than 50 employees that makes less than $250,000/yr. THAT IS HOW THE $200,000/yr AVERAGE IS CREATED.
So, we know that the at least 60% of the non-small business employers are going to feel a new heavy tax burden,,,,, just how many new jobs will THAT create.
And we know that the majority of small business that ACTUALLY create the majority of small business jobs will also feel the additional tax crunch. The ones that won't are the majority of small businesses that either have ZERO or only a couple of employees.
But by all means, you believe Obama because you WANT to because the people who actually NEED those jobs don't want their taxes increase. Their is nothing wrong with not wanting your taxes raised, but let's be honest about the effects and not Bull@!$%# the people who have at least a 4th grade education.
HOW ABOUT THIS? WE STOP SPENDING MONEY WE DON'T HAVE AND DON'T RAISE ANY TAXES, AND INSTEAD ELIMINATE LOOPHOLES TO CREATE EXTRA INCOME (oh wait, that's the republican plan, and we all know what Obama means by "hammering out a deal", it means ACCEPT MY BUDGET OR I WILL BLAME ALL OUR COUNTRIES WOES ON THE REPUBLICANS). I'm sorry, but Obama uses a different dictionary than me, because his definition of a dealing is very similar to every other dictator's version of that word.
Obama got mojo ( against all odds ); GOP got diddly-squat. Sock it to them crackers, BHO. Signed, a cracker who pretends to have soul.
A deal was struck two years ago with Boehner and the Republicans to extend the Bush tax cuts thru 2012. That's been done, now thay want to back away from their own agreement.
Obama should have taken the hit on taxes in 2010, it might have cost him the election, but it would have been better for the country.
There are 425 Billionairs in America..There are 3.1 million, Millionairs in America..He aint gonna get 1.6 Trillion dollars in new taxes from 3 million people..That leaves ALL people that earn between $250 thousand and a million that he's gonna tax the hell out of?..You voted for him.. You got him..
Blade: strive for a smidge of perspective here. By what measure are people in that income bracket being "... tax(ed) the hell out of..."? By today's rates, lowest since the Great Depression? It's hard to imagine how you'd have reacted to the rates for that bracket under Eisenhower, who was decidedly not a socialist.
We need to clean out the house and vote out the majority of the republicans in 2014.
After President Obama won his second term there were several house republicans that stated they would take a step back and re-evaluate their agenda and work together with the democrats to strengthen the economy and work out a budget to avoid the so called fiscal cliff.
Well that didn't last very long, I read an article shortly after the election about how they would make immigration reform a priority when they adjourn in November so they could capture more of the Hispanic votes in future elections.
I also believe that immigration reform should be a priority but only after working on the fiscal budget. The republicans only made the statement about making immigration reform a priority due to their own self interest.
It didn't last very long because Obama went back on his word. He said in the debate his balanced approach was cutting @2.50 for every $1.00 of new tax, than he changed his mind, no cuts and an extra 50 billion added to the budget.
Have you people read Obama care, it is loaded with taxes and
fines on everyone, higher on people making over two hundred thousand. Why has neither
side said get rid of federal income tax across the board so people can buy Obama
care, save for college and retirement or just put food on the table, or that
the president, vice president and congress, the house and senate would slash
their salaries and benefits by 75%? The president and the democrats want more revenue;
they have lost the postal service as their largest revenue and I have heard
rumors they are planning to tax all transaction, banking, spending, phone and
internet. If this is true that means every time you go on line, tweet, text,
get money or spend money the government gets their cut. What are the chances
the government will charge the cost of a stamp 47 cents every time we do these
things, quite the revenue when you consider how many of these transactions are
made a day, How do you like technology, saving a tree and our landfills now? This
next rumor makes me think of credit card adds, the one were a couple is out in the
boonies trying to get in touch with their credit card company by phone, they
hear a phone ring and see this guy come out of a shack to answer their call. The
rumor I heard is skipe a doctor instead of going to see your own and it is only
half your co-pay cost, insurance companies are already pushing their clients to
give them their life’s history and to us there nurses rather than going to the
doctor, is this part of Obama care I do not know. I do now my insurance company
will fine me $300.00 more a year if I do not fill out their questioners on my health,
diet, fitness, drinking and smoking habits I do know this is part of Obama care.
Back to the cliff if Obama has already pork filled, his Obama care with all the
taxes he wants then why in 2011 and now is he fighting with the republicans? The
man could have passed his tax reform in 2009 and 2010 when he had complete
control and bulling power, he passed Obama care by bulling his own part and he
set the bill to come into affect four years after he signed it. Why didn’t he
do this with Bushes taxes, had he done this, we would not have lost or rating
and there would be no blaming the republicans for holding up negotiations? The
democrats have blamed the republicans for everything, looking at the last four
years I will bet Bush had as much control over Democrats as Obama has over the
Republicans, the only difference is Bush did not use the media to slander the
democrats he took all responsibility for what happen. Mr. President enjoy your 21-day Hawaii
vacation and Americans keep checking your mailbox for those armbands and mandatory
tattoo capons.
No more Mr. Nice Guy. Do NOT compromise with the lizards on this one!
I got this from the manufacture's Web site. Just how much do you think these publicity stunts for the POTUS costs Tax payer's? The Campaign is over, the Elections are over. Time for POTUS to grow up and get back to his Office.
The election is over and the POTUS is paying his donors back with a little Taxpayer money for , "free" publicity.
LittleI56: I'd be the last to defend Obama for any such quid-pro-quos, if indeed that's what these were. At the same time, if you're contending that Obama pioneered the practice of serving self with taxpayer funds, I say you'd be off by a century or two.
BLAME YOUR MESSIAH OBAMA not republicans numbskull.
I would be willing to pay the tax rates of any previous time period if they would also limit SPENDING to the SAME PERCENTAGE that was being spent during the time those tax rates existed. BUT they will NOT DO THAT or AGREE to that. Cutting spending is NEVER CONSIDERED.
Obama and those that want others money are disgusting, lazy, and stupid. Why don't Obama and government EVER talk about CUTTING SPENDING before asking for UNLIMITED ACCESS to other people's money by wanting the DEBT CEILING to a be a perpetual INCREASING GOVERNMENT PIGGY BANK for BLOATED and CORRUPT GOVERNMENT SPENDING that would NOT REQUIRE A VOTE BY CONGRESS?
Capital Cronyism is what Obama wants and that is a SOCIALIST/COMMUNIST method of being able to SPEND MONEY WITHOUT the TAXPAYERS CONSENT.
Instead of TAX and SPEND, which is NOT GOOD, now they want to have a UNLIMITED PERPETUAL ABILITY TO INCREASE the NATIONAL DEBT, which is SPEND AND TAX.
What people do not understand about how stupid and dangerous a National Debt that we have NOW is, I find flabbergasting.
I don't mind paying more taxes but NOT UNTIL Government CUTS the STUPID SPENDING and starts with unnecessary subsidies to anyone, and foreign aid, and then Defense, and then Entitlements and other idiotic programs...THEN come to me for more taxes and until then go to hell.
The balanced approach was supposed to be $2.50 budget cut for every $1.00 of new tax, or was that just another one of your convent lies Obama. where is the balanced approach? remember Congress was voted in to do one thing, they have the mandate, you don't.
I'm going to watch how both sides resolve the problem with our country's fiscal deficit.
Preserving Bush era tax cuts for the middle class doesn't seem all that bad, it's abolishing the debt ceiling and giving Obama a credit card with no ceiling that scares me to death.
We don't really have the money to be spending 50 billion on a stimulus package either. You know, the last 850 billion dollar stimulus didn't create any jobs or recovery.
We also need to think about all the billions of dollars Obama has wasted on failed green energy programs.
Obama dictatorial stance again of its my way or the highway, hoping Republicans will cave in or be blamed for the bs fiscal clliff. This fraud of a Prez using his push for "middle class" tax cuts while demanding $1.6 trillion in tax increases for more spending is pure hogwash and politics.
We will all get hit in the pocketbook if he gets his way no matter what "working class' you belong to. He also wants the debt ceiling increased to over $19 trillion which should be a clue of just what a threat he is to the fiscal welfare of our country.
Many businesses making over $250,000 are small businesses who will have to either cut back on expenses with less employees and charge or higher prices to stay in business. Obama's class warfare using the term "middle class" is just political BS, but there does exist a large number of working Americans providing for themselves and their families.
Obama is and always will be a small business killer because of his ignorance in economics and what really creates jobs. What a disaster the next four years will be as Obama will find out his game of chicken with the "fiscal cliff" won't work backfiring on his own rear.
The real solution isn't raising taxes on anyone.
The real solution is the United States Government needs to get smaller and stop spending so much money.
The problem is though is that Democrats ran their campaign on growing bigger government, raising taxes and creating more government programs.
In short the Democrats won their re-election on higher taxes and bigger government and we don't have the money to support what we have now.
The Voters screwed up and too many of them picked the wrong candidate to get America out of this mess we're in.
No they did not! The Democrats ran thier compaign on asking the wealthy to "pay a little bit more". The President never said ANYTHING about creating MORE government programs.
In short the President never said ANYTHING about bigger government.
The voters picked the team that is for 100% of AmeriCANs not just the 1%.
Question, if Obama gets his way for higher taxes on the rich
do the 1% in our government get to opt-out as they did with health care, social security and Medicare?
Back in time- what they are not telling you--They are exempting the first 250,000.
Isn't the president of the United States supposed to send to congress a balanced budget pan??? Why have we not ever seen one of these lost children from any Democrat in the past 4 years???
Great pic- Obama in front of a toy roller coaster...classic....He certainly has something in common with that toy. He's taking us on a roller coaster ride into economic hell.....Now, Isn't this the guy that constantly states that tax cuts do not help the economy? In the meantime he wants them? Time to go over the cliff and teach this " You can't see my college grade President a lesson on how the cuts help by removing all of them....I hope he passed math.
Yankees9 - by the way anyone want to bet how long the toy company last after obamacares starts? We can even
make another bet if they do survive how many employees are part time 25 hours.....
Today I did an in depth article about Federal Government Spending, budget, and the fiscal cliff. I was shocked at what I discovered when reviewing the accounting for all money spent by Washington DC since 2000. I am going to give it to you quick dirty and accurate. Under George Bush Fed's spent $3.1 trillion a year with tax revenue of $3 trillion. As a result we had about $100 billion a year added to the deficit each year. Starting in 2008 Washington started spending $3.8 trillion a year and tax revenue is on $2.6 trillion a year. Tax revenue took a nose dive plus that original $700 billion tarp or stimulus money has become the new base so $3.8 trillion is the new spending level for the feds. Here is the surprise. The additional $700 billion being spent is only going to two areas Military and Welfare. President Obama has increased funding to the military from $650 billion under Bush to $959 billion a year. Yes the war monger, spend crazy Bush cannot hold a candle to Obama. The only other area Obama has increase funding to is Welfare. Welfare under Bush was $210 billion a year and now under Obama it is $465 billion a year. Poverty has risen from around 20 to 40 million since Bush to now. The funding of Welfare seem to remain a about $10k to $11k for each person living in poverty. By the way both Social Security and Health care have remained the same or have slightly dropped since Bush left Washington.
So this is the real deal. Once again Washington is going to take more money from tax payers and offer no cuts in spending except in the one area that is not funded through taxes actually. The only increase in Social Security is in the area of retirement benefits for Federal Employee's. The Federal Employee Retirement or SS funding has gone from $100 billion to $125 billion and regular SS has dropped by several billion dollars. When are we going to stop these guys and demand the truth. Obama has done nothing but double down on the Military Industry segment of business by supplying them with almost a trillion dollars a year. He has expanded the poverty class only with funding. So we are not redistributing wealth we are redistributing people from the middle class to the poverty class.
So our choices are raise taxes (which will cost everyone more). You cannot raise taxes on one income level without it costing all the other classes more. To offset the increase taxes there will be an increase in wages, cost of goods, or cost of service. So everyone ends up getting a increase either in taxes or the stuff they buy possibly both. So raise taxes and no cuts in spending. To top it off a cut in Medicare spending is BS because SS and Medicare are suppose to be funded by your and your employers contribution to SS and Medicare every time you get paid.
The other choice is not to raise taxes but to limit deductions.
I guess on thing that would fix stuff quick is to cut the $700 billion TARP funding out of the new tax base. When a politician tells you that this is a one time tax you should realize that he is lying!! Every time additional money is allocated or paid out by Washington that becomes the new base level of spending. So when Washington voted that one time Stimulus spending or TARP for $700 million that took Washington's annual spend allocation from $3.1 trillion under Bush to $3.8 trillion under Obama. These politicians are very slick shyster. Con men is an understatement. I think we would actually be more productive if we would quit slinging crap at one party or the other. Instead, we should get in these crooks face and let them know we are familiar with the way spending levels are set and increased and call them down on this crap.
Rick,
Good information and thank you!
This fiscal cliff is more about his spending than anything else What is the highest rate for income tax supposed to go to 39%.. I say we all should pay that amount except the poor and elderly.. Make the tax raise for all ... Obama needs that money for his under the table and open administration...