Deadlock on taxes will raise what most Minnesotans pay the government Michael Olson July 13, 2012, 6:18 AM Jul 13, 2012 0 By Colin Campbell [View the story "If Tax Debate Goes Unresolved Minnesotans' Paychecks May Take a Hit" on Storify] If Tax Debate Goes Unresolved Minnesotans’ Paychecks May Take a Hit With a tax-package set to expire in less than six months, Congress and the White House are in a debate over which income groups should continue to get breaks. If the deadlock endures, and a compromise isn’t agreed to, middle-class Minnesotans could see their taxes go up by more than $1,200 next year. Storified by Minnesota Today · Fri, Jul 13 2012 04:17:29 President Obama met on Wednesday withDemocratic leaders about his initiative, announced Monday, to renew theBush-era tax cuts for another year but end breaks for individuals making over$250,000 a year. With the media income in Minnesota at $57,243, according to 2010 Census figures, most taxpayers wouldn’t be affected if Obama gets his wish and the breaks end for those making over $250,000. But if the Republican-controlled House refuses to pass the renewal outlined by Obama and the President stands by his promise to veto any extension that doesn’t end the tax cuts for the highest earners, there may be a stalemate that lasts into 2013, past the date the taxes are set to expire. Such a scenario would lead to across-the-board tax hikes for all income earners –a result that would affect Minnesotans, rich and poor. undefinedNpr The debate over the taxes has come up forrenewal votes once before during Obama’s presidency and while he pushed for asimilar proposal during to 2010 debate to end breaks for the highest earners,he couldn’t muster the 60 votes necessary to move legislation through theSenate. Unwilling to let the tax cuts expire as the economy was beginning torebound from the recession, Obama relented and renewed the breaks for all income earners. This time around the President promises a strongerfight and a refusal to be bullied into passing signing any bill that doesn’t end the breaks for people making over $250,000. Asked repeatedly during Monday’s White House press briefing if therewould be a possible circumstances that would result in Obama renewing the taxcuts for all earners, press secretary Jay Carney was adamant that the Presidentwould not sign any such bill. 7/9/12: White House Press Briefingwhitehouse “His position is clear. It is for $250,000″ — White House Press secretary Jay Carney If the current stalemate slogs past Jan. 1, 2013, the date the tax cut is set to expire, most Minnesotans will find themselves paying between $1,843 and $3,429 more intaxes next year. Also worrisome for Minnesota families is the child tax creditwhich would drop to $500 from $1,000 if the Bush-era breaks aren’t renewed. Fora Minnesota family with three children that can be the difference of $1,500 a year. On Twitter, Minnesotans echoed their respective parties’ messages on the proposal. Democrats praised the president as bringing fairness to the tax code while Republicans highlighted the announcement as another example of the president’s war on the wealthy. I applaud Pres Obama for standing firmly with America’s middle class. GOP is holding middle class tax cuts hostage to breaks for the rich.Sheila Cachuela Obama wants to change the Bush tax cuts to the Obama tax cuts. This is perfect example of Obama’s Robin Hood economic plan.F. W. Reyn RT @whitehouse: By the Numbers: 97: http://on.wh.gov/hPrp President Obama wants to extend tax cuts for 97% of small bus. http://pic.twitter.com/TQhCIZYFbobhume Economy Government ‹ Older Bill diluting mining rules passes U.S. House Newer › Wilderness advocates advance case against AT&T tower on edge of BWCA Browse by category Escape Route Minnesota Sounds & Voices Get Out There MN Made State Fair Minnesota Scenes “Fargo” About the blogger Michael Olson email@example.com • @publicmic Editor, Minnesota Public Radio News Comments are closed.