MEMORANDUM THE WHITE HOUSE June 29, 2012 MEMORANDUM FOR INTERESTED PARTIES FROM: DAVID PLOUFFE SENIOR ADVISOR TO THE PRESIDENT Winning the Middle Class Tax Battle SUBJECT: In light of yesterday's Supreme Court ruling to uphold the Affordable Care Act, Republicans in Washington are trying to deliberately misrepresent the President's record of cutting taxes for the middle class. We welcome this debate on middle class taxes, and we urge you to seize this opportunity to go on offense to illustrate how the President and Democrats in Congress are standing up for the middle class. As reported in the Washington Post, independent analysis shows that the House Republican Budget will give huge tax cuts to the wealthy while raising taxes on the middle class. After over a decade of watching the security of the middle class erode, Republicans in Congress are determined to return to the exact same policies that led to the economic crisis. The President refuses to settle for a country where a shrinking number of people do really well, while a growing number of Americans barely get by. There is a fundamental difference between what the President's tax policies do for the middle class and what Republicans in Congress have voted for and plan to do. Below are the key points for driving this argument in the coming months: ? If Republicans want to talk about taxes then we're happy to have that debate. And there's a very clear choice. President Obama has cut taxes by $3,600 for the typical middle class family. Republican plans will raise taxes on middle class families to give millionaires and billionaires a $250,000 tax cut. The facts are clear: the health care law provides a significant tax cut averaging about $4,000 for more than 18 million middle class people and families--a tax cut Republicans in Washington are vowing to repeal, socking it to the middle class once again. ? ? ? For those that can afford health insurance but stay uninsured--forcing the rest of us to subsidize their care for free--a penalty is administered. This is estimated by the CBO to affect 1% of the population. It is modeled on the health reform Governor Romney signed into law, where less than 1% have been affected by the Massachusetts penalty. The bottom line is this though: the Court has issued a clear and final ruling on this law. The last thing Congress should do is refight old political battles and start over on health care by raising taxes on the middle class and repealing the entire law. As we implement this law, we should improve it where we can and give States more flexibility. Right now, Congress needs to work together to focus on the economy and creating jobs. ? ? ? On every issue--from reducing the deficit in a balanced way to paying for investments in education--Republicans refuse to ask the wealthy to pay their fair share all while cutting the investments we need to grow the middle class. In fact, Republicans in Congress have voted to preserve tax breaks for big oil and cut taxes for millionaires by 25%. And they'll pay for that by ending Medicare as we know it and raising taxes on the middle class. President Obama will keep taxes low for the middle class and create good-paying Americans jobs by ending tax breaks for companies to ship jobs overseas. Unlike Republicans, the President's plans grow the economy and create jobs by reducing the deficit in a balanced way and investing in education, clean energy, innovation, and infrastructure.