This bipartisan effort was prompted by the fact that tax rates for every American were poised to automatically increase on January 1st. If that had come to pass, the average middle-class family would have had to pay an extra $3,000 in taxes next year. That wouldn’t have just been a blow to them — it would have been a blow to our economy just as we’re climbing out of a devastating recession….[snip]
And millions of entrepreneurs who have been waiting to invest in their businesses will receive new tax incentives to help them expand, buy new equipment, or make upgrades — freeing up other money to hire new workers.
Putting more money in the pockets of families most likely to spend it, helping businesses invest and grow — that’s how we’re going to spark demand, spur hiring, and strengthen our economy in the New Year.
Senate Republican Leader Mitch McConnell (R-KY), who attended Friday’s ceremony and who took the lead in gaining the tax concessions from the President, a Senate floor statement:
I’m pleased to report two pieces of good news out of Congress today. After two years of policies that lacked public support, the tide is beginning to turn.
Today the President will sign a bill that ensures no American gets a tax hike on January 1. Republicans have fought hard for this legislation. Up until last week, most Democrats resisted. But in the end the American people were heard. And that’s a welcome change from the past two years.
The other piece of good news, McConnell said, was Senate Majority Leader Reid’s decision to withdraw the 1,924-page, $1.2 trillion omnibus bill.
The absence of Reid and Speaker of the House Nancy Pelosi prompted much commentary in the blogosphere, as in the Politico piece, “Pelosi and Reid skip bill signing.” Robert Costa of National Review Online has an informative report on the ceremony, “A Tax Deal, and Rev. Al,” a reference to Al Sharpton’s attendance.
Executive Vice President Jay Timmons of the National Association of Manufacturers issued a statement, “Manufacturers: Tax Relief Will Spur Economic Recovery and Job Growth.”
And coverage/commentary with a manufacturing focus:
- Plastic News, “US manufacturers encouraged by two-year extension to federal tax cuts“
- AOL Daily Finance, “The Compromise Tax Bill: Why Something Was Better Than Nothing“
- Chemical and Engineering News, “Tax Deal Benefits R&D: Economy: Bipartisan measure will boost investments and create jobs, industry says“
- Window & Door, “Congress Pares Back Tax Credits for 2011“
- AP, “Obama Meets with Union Leaders on Tax Cuts“
- Agriculture Online, “Biodiesel industry finally gets good news“
- New York Times, “Estate Tax Will Return Next Year, but Few Will Pay It“