- CNTV English - CCTV News

Americans to spend 200 billion dollars less in 2013 with tax hikes: White House

11-27-2012 05:49 BJT

WASHINGTON, Nov. 26 (Xinhua) -- U.S. consumers might spend 200 billion U.S. dollars less than they otherwise would have next year because of the looming threat of higher taxes, the White House warned in a report on Monday.

"The President (Barack Obama) believes Democrats and Republicans should come together to renew middle-class tax cuts so families and businesses have more certainty at this critical time for our economy," noted the report, compiled by the National Economic Council and the Council of Economic Advisors of the White House.

The reduced spending of 200 billion dollars was approximately four times the total amount that 226 million U.S. shoppers spent on the Black Friday weekend last year, and such reduction would likely spread across all areas of consumer spending, added the report.

If Congress acts to avoid tax hikes for Americans, every American will get a tax break on their first 250,000 U.S. dollars of income, and income taxes won't go up for 98 percent of U.S. families and 97 percent of small businesses in the country, said the White House.

Domestic consumers are the bedrock of the U.S. economy, having driven more than two thirds of the overall rise in real gross domestic product (GDP) over 13 consecutive quarters of economic recovery since mid 2009.

"And as we approach the holiday season, which accounts for close to one-fifth of industry sales, retailers can't afford the threat of tax increases on middle-class families," stressed the White House.

Unless the U.S. Congress acts by the end of this year, a combination of tax hikes and sweeping spending cuts, dubbed the " fiscal cliff" and with a combined amount of about 600 billion U.S. dollars, was set to kick in. Democrats and Republicans have so far locked horns over how to reduce the nation's public debt hovering at 16.2 trillion dollars and tide over the "fiscal cliff."


Related stories

Editor:Zheng Limin |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program