WASHINGTON (AP) — Congress seems increasingly reluctant to let taxes go up, even on wealthier Americans.
Worried about the fragile economy and their own upcoming elections, a growing number of Democrats are joining the rock-solid Republican opposition to President Barack Obama‘s plans to let some of the Bush administration’s tax cuts expire.
Democratic leaders in Congress still back Obama, but the willingness to raise taxes is waning among the rank and file as the stagnant economy threatens the party’s majority in the House and Senate.
“In my view this is no time to do anything that could be jarring to a fragile recovery,” said Rep. Gerry Connolly of Virginia, a first-term Democrat.
The most sweeping tax cuts in a generation are due to expire in January, and that’s setting up a showdown when lawmakers return from their summer vacations this month. By waiting to act on the tax cuts until just before congressional elections in November, Democratic leaders have raised the stakes, politically and for taxpayers.
If Congress fails to act — a possibility given the gridlock that has gripped the Senate — workers at every income level would face significant tax increases next year.
Taxpayers making between $40,000 and $50,000 a year would get hit with an average income tax increase of $923 next year. Those making between $50,000 and $75,000 would face an average increase of $1,126, according to estimates by the nonpartisan Joint Committee on Taxation.
Obama wants to make the tax cuts permanent for middle- and low-income families while allowing them to expire for individuals making more than $200,000 and married couples making more than $250,000.
Republicans want to make all the tax cuts permanent, adding nearly $4 trillion to the national debt over the next decade. Most Democrats in Congress support Obama’s plan, but a growing number have come out in favor of extending all the reductions for a year or two, leaving the outcome very much in doubt.
“It’s going to be hard to resist a one-year extension for everybody, given the state of the economy,” said Clint Stretch, a tax expert at the consulting firm Deloitte Tax LLP. “That’s where I think the ball is moving.”
The tax cuts were enacted in 2001 and 2003 under President George W. Bush. They provided help for both rich and poor, reducing the lowest marginal rates as well as the top ones and several in between. They also provided a wide range of income tax breaks for education, families with children and married couples.
Taxes on capital gains and dividends were reduced, while the federal estate tax was gradually repealed, though only through this year.
Connolly said the nation cannot afford to make all the tax cuts permanent, which would add about $3.9 trillion to the national debt over the next decade according to updated estimates from the nonpartisan Congressional Budget Office.
“I would say certainly a year, until we feel more confident about the economic growth of this economy,” he said.
Another freshman Democrat, Rep. Bobby Bright of Alabama, said he would like to see all the tax cuts extended for two or three years, if lawmakers cannot agree on a more permanent plan.
“Party leaders are not my directors or my boss,” Bright said. “My boss is my constituents, and I‘ve heard from a vast majority of my constituents that they don’t believe in tax increases on anybody at this point in time.”
Bright is high on the re-election endangered list, one of roughly four dozen Democrats in districts won by Republican presidential nominee John McCain in 2008.
In the Senate, where Democrats need unity and at least one Republican vote to overcome filibusters, at least three Democrats and independent Joe Lieberman of Connecticut have said they want to extend all the tax cuts temporarily.
Several Democratic candidates for Senate have also come out in favor of extending them all, including Robin Carnahan in Missouri and Jack Conway in Kentucky.
“Jack Conway was in favor of the Bush tax cuts when they first passed (in 2001 and 2003), and he’s in favor of extending the Bush tax cuts now,” said spokeswoman Allison Haley.
Obama first staked out his position on taxes during the presidential campaign, and his administration has been adamant that the nation cannot afford to extend the reductions for top earners.
Obama’s plan would let taxes increase by a little more than $38 billion next year, with nearly 80 percent of the increase falling on families making more than $1 million, according to the Joint Committee on Taxation.
Taxpayers making between $200,000 and $500,000 would face an average tax increase of $532, according to the analysis. Those making from $500,000 to $1 million would average an increase of a little more than $9,800. Taxpayers making more than $1 million would average an increase of just over $95,000.
This week, White House economic adviser Jason Furman said it would be a bad idea to extend tax cuts for the wealthy, even for just a year, because it would open the door to making them permanent. Last week, Vice President Joe Biden said Republican claims that small businesses would be hurt by the proposed tax increase are a “bunch of malarkey.”
On Thursday, White House spokesman Robert Gibbs said extending cuts for the wealthy would do little to improve the economy.
“We are focused first and foremost and only on extending tax cuts for the middle class,” Gibbs said.
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RUKiddingMe
Posted on September 15, 2010 at 12:57amDon’t believe the amount of lies that will be coming out of this WH, Senate and House as the elections draws near. Obama FOOLED YOU ONCE and they plan to do it again. They will tell the neive voters (unless your are socalist wanting to destroy America) exactly what they want to hear in order to win and then AFTER the election…..POW.. right in the wallet of all Americans with their Socialist agenda. Spend Spend Spend, Grow Government and Screw the Taxpayers. Vote smart!
Report Post »Drydave
Posted on September 10, 2010 at 6:33pmIt’s way too late for the dems, whether they raise taxes or not. They’ve done quite enough damage already.
It seems to me that last spring they weren’t concerned about raising our taxes. What were they thinking? That the electorate was so stupid, so forgetful, that the mess they made with Obamacare (and the other messes) would all blow over by the November election, that’s what. Well, that might be the case when it comes to the lockstep union folks and the poor homeless bums that Cuba Gooding dragged out from under overpasses to cast a (D) vote for a carton of Newports, but the rest of us have longer memories than that!
And I hope the GOP guys that wind up getting voted in keep in mind that they can be gone just as quickly and as easily if they forget that they represent us and don’t rule us.
Report Post »Juan Gault
Posted on September 6, 2010 at 2:57pmRemember November. Get ready for “The Lame Duck Congressional Session”, following the November election.
Those Democrats,who have lost their seat, will still have the Gall, to cast votes, about proposed MAJOR legislative bills which will cost We The People, more taxes. Those lame ducks will answer to no one.
Should we be surprised to see, proposed legislation,again shoved down our throats? Remember, an emergency (losing the democratic house majority),is something NOT to wasted, paraphrasing.
Attempts to have the Speaker of the House ,to allow a vote on lame duck non voting after the November election,has fallen on deaf ears. Another reason to Remember November..Vote!!!
Report Post »bolec slodkie
Posted on September 6, 2010 at 2:40pmA few weeks ago, Amity Shlaes, the author of “The Forgotten Man: A New History of the Great Depression,” mentioned a book by Andrew Mellon use to a book used to convince the 97% who didn’t pay taxes to cut taxes for the 3% who did. (Shame on Glenn for not offering the lady a chair on the stage; she sat in the front row.) The book worked…
“The top marginal tax rate was cut from 73% to 58% in 1922, 50% in 1923, 46% in 1924, 25% in 1925, and 24% in 1929.” http://www.scripophily.net/anmesistcele.html
The depression of 1929 was over before the tax increases were introduce in 1932. That extended the depression until 1946, or 1951 depending on what data you choose to measure the recovery.
The book is available on line in multiple formats at http://www.archive.org/details/taxationthepeopl033026mbp
It could have been written yesterday.
Because this is a scan of the original 1924 printing it doesn’t include data on how successful the tax cuts were.It would be great if the tables were updated to include the Harding/Coolage, Kennedy, Reagan, Bush tax cuts and revenue vs spending.
It would be useful to have every politician voting on any tax to get a portion of this book as an email, text, twitter, etc.
Report Post »Drydave
Posted on September 10, 2010 at 6:45pmWhatever is enacted during the lame duck session should be the first order of business with the new Congress. As a matter of fact, the new Congress should be a slow-motion rewind of the last Congress… slowly undo everything that’s been done. If they did that, they’d surely be back in there in 2012.
Report Post »ron the veteran
Posted on September 4, 2010 at 11:38amthe problem is after the election. what are they going to try to shove down our throats then. we must demand the traitors of this nation who voted to crap on the constitution and do what they think was best for us no matter how we felt. they must be tossed in jail. whats going to stop the next bunch? we got to make an example of these fools. we got to lock them up and throw away the keys, as a warning to anyone else who thinks he or she can do as they please and violate every rule laid down by our founders. we must not let this pass with little or no punishment. this goes for mr obama too.
Report Post »EntropysChild
Posted on September 3, 2010 at 2:42pmIf we don’t BOTH raise taxes AND cut spending, the american economy is doomed.
Report Post »Uber
Posted on September 3, 2010 at 2:25pmI find it amazing how the left can insist on Tax increases, but when it looks like that won’t work, how easily they want tax cuts to save their jobs. Its all about saving their jobs! If they are reelected they will go back to tax increases as soon as possible. They all need voted out.
Report Post »MikeinIdaho
Posted on September 3, 2010 at 11:15amRaising taxes by letting Bush‘s tax cuts expire is a big part of Obama’s plan to turn us all into serfs toiling for the elite with no money of our own, save what few pennies THEY deem approriate. Fight them at EVERY turn and throw them out at EVERY election! The Republic is counting on ALL of us to do the right thing!
Report Post »ron the veteran
Posted on September 4, 2010 at 12:02pmit the globalist elites. they need to bring america to its knees to push the u.n. into power. its time to clean up the u.n. or get out all together. the world need us more than we need them. with out us the world would still be living in the middle ages. hell some countrys still are.
Report Post »fearless patriot
Posted on September 3, 2010 at 10:45amAt what point will Congress understand America needs the money it earns. I need to buy food for my family and pay for the sports my children take part in at high school. After the shockwave hits the Democrats this November, Independants and Conservatives will begin to take back this great nation. Bring on the mid-term election!
Report Post »TomBurpee
Posted on September 3, 2010 at 6:50amIt’s a shell game. I loath the fact that they do this, even now when we’re crying out for honor, honesty, and love. They continue to act as if it’s business as usual: “Whoops! I’m up for reelection in November, time to look trust worthy again!”
Report Post »The only thing I can hope for, is that this new Congress will at the very least admit they were wrong, and either resign or stick to their guns. If you believe it’s right, hold to it!
PAULA J ANDERSON
Posted on September 3, 2010 at 3:50amTAX CUTS WILL BE THERE IN VARIOUS WAYS. WHEN YOUR EMPLOYER PROVIDES YOU HEALTH INSURANCE AS REQUIRED BY OBAMA’S HEALTH CARE COMMANDMENT, THE EMPLOYER WILL INCLUDE ON THE EMPLOYEE’S W-2 FORM THE VALUE. THUS THE EMPLOYEE WILL PAY TAXES ON THIS “BENEFIT” WHETHER OR NOT HE WANTS IT. (THIS IS MY UNDERSTANDING). SO IF YOU MAKE $50K PER YEAR AND YOUR HEALTH BENEFIT COSTS $10K–YOU WILL BE PAYING TAXES ON $60K. IN MANY INSTANCES THIS CAN UP THE TAX BRACKET. ***THIS IS HIDDEN TAXING.***
Report Post »onephoneman
Posted on September 3, 2010 at 12:34amI pray that the R and the D’s come together to stop this maddness!!!
Report Post »doncarr61
Posted on September 3, 2010 at 12:26amI believe that it doesn’t matter what the politicians are saying. It is patently obvious that the same guys who jammed the deficits and big government upon us are now apologizing and hoping we have gotten over it. This has always worked in the past..it will probably work again. I am at the point of following the Atlas shrugged scenario. I do not think it makes much difference in 2010 because we have been gamed again. Just remember you don’t always get what you want..you get what you deserve.
Report Post »HeReturnsSoon
Posted on September 2, 2010 at 11:31pmAhh… Even the democrats can see the pendulum swing, we can see the fear in their eyes. A great deception will be fallowed by a great Revelation. Time is also a creation of God and he has set a duration for this condition. Choose ! Soon !
Report Post »Dustyluv
Posted on September 2, 2010 at 11:21pmBiden said it all…Time to pay your fair share. Remember that at the polls….
Report Post »Pa7sy
Posted on September 2, 2010 at 11:16pmI’m sorry, but I can’t believe ANYTHING that the dems say about taxes (or anything else) ~ not after listening to their lies these last 2 years! How can we make people see that their campaign rhetoric does not equal, or even come close to what they’ll do once in office? Fool me once…
Report Post »cueball
Posted on September 2, 2010 at 10:41pmTerm limits!
Once again…. Socialism is for the people, not the socialists. For any of the progressives to say anything about taxes and be credible, they would have to pay theirs first. Too bad most of them avoid paying them.
Tired of folks just saying whatever they think will get them elected….
Report Post »Jynnipher
Posted on September 2, 2010 at 10:28pmWe need to get rid of them all, this is insanity. They are pulling an arbituary number out of the sky by saying if they keep the taxes they will all nearly $4 Tillion to the deficit. Huh? What happens as businesses close and the wealthy move to a country that is more free than ours currently is? As more people become unemployed, less taxes will come in but more monies will be spent via public assistance funds (welfare, food stamps, etc). What’s that number for adding to the deficit.
Logical = unlogic in congress and our “leaders”.
I say again, we need to get rid of them.
Oh and lastly “Last week, Vice President Joe Biden said Republican claims that small businesses would be hurt by the proposed tax increase are a “bunch of malarkey.” Good thing he knows what he’s talking about, good thing he’s had to make payroll and keep his spending in check, good thing he knows all about balancing his budget and staying afloat. How did people like this end up being a “leader”?
Report Post »Stavy
Posted on September 2, 2010 at 9:35pmThey say the Bush tax custs are going to cost us $4 trillion over the next 10 years. Really? They still think we are sheeple that will believe anything they say. The taxes cuts don’t “COST” us anything! It’s all the spending they are PLANNING on over those ten years that’s going to cost us everything!! When are those idiots in DC going to learn that we are on to their shell game?!? Cut the spending and we won’t need to raise taxes on anyone!!
Report Post »123halle
Posted on September 2, 2010 at 8:59pmI wonder where they get accounting from , we use to make 50k a year now we make 15k and struggling just to keep our home a small three bedroom . and now they want to raise taxes and charge us for not having heath insurance when we can’t afford it . they need a mental check up
Report Post »ron the veteran
Posted on September 4, 2010 at 11:58amthey give them phoney ideas and you know how that works, garbage in, garbage out.
Report Post »glockster23
Posted on September 2, 2010 at 8:27pmIt’s amazing to me how we have lost the language battle on taxes and tax cuts. Tax cuts are now considered “spending” or that the economy is a zero-sum game. Whereas if you cut taxes you automatically lose revenue. This has been proven to be false. Why does the so-called “non-partisan” CBO not learn from history. When taxes are cut or kept low, the economy expands and MORE revenue actually flows into the treasury…..not less.
Report Post »ron the veteran
Posted on September 4, 2010 at 11:55amthis is the lie they are selling the poor. they dont know they been living off the people so long they dont got a clue. the colleges are full of communits teachers and kids cant get good grades unless they are indoctranated to be communist or democrats. our schools have been over run with teachers like bill aires and ward churchhill. you get people like hillary clinton and barok obama out of our colleges now. we are being invaded through our schools. its up to us to help clean them up. its time to stop this now before we lose our nation to our kids who are being lied to and not learning the truth.
Report Post »chattycathy
Posted on September 2, 2010 at 8:27pmIt’s humorous to hear Rep. Connolly (VA) worrying about the deficit. He voted YES on 8/10 (House Vote 518) on a bill which was a legislative vehicle to hide MILLIONS in funding to teacher’s unions & the bailout to fiscally irresponsible states. While the Democrat majority claimed that the bill was paid for, they simply reduced the amount of money set aside for food stamps in the Stimulus bill – WHICH IS NOT YET PAID FOR!
Report Post »http://clerk.house.gov/evs/2010/roll518.xml
ron the veteran
Posted on September 4, 2010 at 11:47amdefinition of democrat; see progressive. progressive; 1. having your hand in anothers pocket for personal gains while saying its what best for you. 2. socialist, communist, marxist, maoist, 3. liars, self serving, power hungry.
Report Post »SouthernYankee
Posted on September 2, 2010 at 8:21pm“Taxpayers making between $40,000 and $50,000 a year would get hit with an average income tax increase of $923 next year. Those making between $50,000 and $75,000 would face an average increase of $1,126,…”
Even some “conservative” commentators refer to the Bush tax cuts as tax cuts for the wealthy. I guess the new definition of wealthy is $40K/yr.
truelybrown
Posted on September 2, 2010 at 8:40pmYea, how many people do you see that make 40-60k NOT struggling!
Report Post »123halle
Posted on September 2, 2010 at 8:18pmmay GOD help us . we lost our gobs because of the morons ..
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