Inaction on Bush tax cuts would pinch wallets and cost Democrats
By Jay Heflin - 09/11/10 06:00 AM ET
President Obama and most Congressional Democrats want to extend tax rates for individuals making less than $200,000 and families with incomes below $250,000. Tax rates for people making more money would revert back to the higher rates under Obama’s plan.
Republicans want to extend all of the lower tax rates.
Democratic lawmakers in August promised to extend them for the middle-class before November’s election, but so far no proposal has been put forth. Sen. Jack Reed (D-R.I.) on Thursday said that action on the matter is now likely to slip until after ballots are cast this fall.
“We’re going to get into a serious debate about the extension of the Bush tax cuts,” he told reporters. But he said he isn’t sure it will get done soon.
“Being honest, I think given the time constraints, and the fact that there is a campaign season afoot, that the ability to do anything major is going to be very limited beyond (passing the small business jobs bill),” he said.
The severity of the recession has Republicans and a growing number of rank-in-file Democrats calling to extend all the Bush tax cuts while Democratic leaders and President Obama are unyielding in wanting to continue only those breaks benefiting the middle-class. (I would disagree this is the real reason for their insistence on extending the Bush tax cuts for the top 2%.)
http://thehill.com/blogs/on-the-money/domestic-taxes/118155-inaction-on-bush-tax-cuts-would-pinch-wallets-and-cost-democrats