The Washington Post reported late Sunday that Democrats are threatening to go over a "fiscal cliff" if Republicans don't agree to raise taxes on the rich.
The Washington Post explains: "The term 'fiscal cliff' refers to the sharp drop in the 2013 budget deficit that would result from policies in current law. Thanks to a deal Obama cut with Republicans in 2010, the Bush tax cuts — and dozens of other tax provisions — are set to expire in December, raising taxes for virtually every U.S. household next year."
But some Democrats are willing to let the so-called "tax cuts," which have been the tax policy for the past decade, expire for the entire nation if Republicans don't raise taxes on families making more than $250,000 a year, colloquially referred to as "the rich."
Fox News has more information.
Senate Democrats appear willing to use your paycheck to play political hardball on taxes unless Republicans agree to President Obama's plan to raise taxes on America's top earners.
A top Senate Democrat warned Monday that, if Republicans don't relent, her caucus is willing to let all the Bush-era tax rates expire at the end of the year -- in effect threatening to let the country fall off what many in Washington call the "fiscal cliff."
[...][Sen. Patty Murray, D-Wash., said]: "So if we can't get a good deal, a balanced deal that calls on the wealthy to pay their fair share, then I will absolutely continue this debate into 2013 rather than lock in a long-term deal this year that throws middle-class families under the bus," she said in prepared remarks for a speech she plans to give Monday afternoon at the Brookings Institution. Murray is head of the Democratic Senatorial Campaign Committee, the campaign arm for Senate Democrats.
"If middle-class families start seeing more money coming out of their paychecks next year -- are Republicans really going to stand up and fight for new tax cuts for the rich? Are they going to continue opposing the Democrats' middle-class tax cut once the slate has been wiped clean? I think they know this would be an untenable political position. And I hope this pushes them to come to the table with real revenue now before being forced to the table if we don't get a deal before the New Year," she said in the remarks.
Both Republicans and Democrats are arguing that the other side is set to trigger massive taxes hikes in 2013. Sen. Murray said that if tax hikes do occur, it will be the fault of the Republicans for failing to comply with Democrat negotiations that taxes be raised on country's wealthy.
However, with more than 8% unemployment and unfathomable regulation around the corner with the passing of the president's health care bill, Republicans argue that raising taxes on anyone, including the rich, is economically destructive.
Sen. Rob Portman of Ohio, who is reportedly being considered for the role of vice president, explained:
"Raising taxes on employers and the middle class, growing government at the expense of free enterprise, piling on new regulations that increase the cost of doing business -- these burdens make it harder, not easier, to create jobs in America...Today, instead of lifting the burden on job creators, the President is once again calling for a massive tax increase on nearly 1 million small businesses that employ tens of millions of Americans. I guess he still thinks the private sector is doing just fine. Well, the private sector is not fine. And raising taxes on job creators during a jobs shortage makes about as much sense as cutting off the water supply during a drought."