Senate Republicans Vow No Tax Hike on Rich
President Obama's plan to raise taxes on wealthier people while preserving cuts for everyone else appears increasingly likely to founder before Election Day.
Senate GOP leaders declared on Monday that Republicans are, to a person, opposed to legislation that would extend only middle-class tax relief - which Obama has repeatedly promised to deliver - if Democrats follow through on plans to let tax rates rise for the wealthiest Americans. The GOP senators forcefully made their case one day after House Republican leader John Boehner suggested he might vote for Obama's plan if that ends up the only option.
Both Republicans and Democrats are using the looming expiration of Bush-era tax cuts as a defining battle in elections to determine control of Congress.
CBSNews.com Special Report: Campaign 2010
It would take numerous Democratic defectors to pass the Republicans' version - extending all the Bush tax cuts - or the issue could be left for a postelection congressional session if Republicans block the measure with a filibuster. Obama last week declined to say whether he would veto a bill that preserved the tax breaks for the wealthy.
On Sunday, Boehner said he would support renewing tax cuts for the middle class but not the wealthy if that was his only choice. Though Boehner was clear that he supports extending the full range of tax cuts, the White House jumped on his remarks as a possible change of heart.
Geithner Welcomes GOP Support for Tax Plan
But Sen. Jon Kyl of Arizona, the GOP whip, said Monday his party won't give ground.
"Just before the recess we had a meeting and we discussed this, and every Republican was absolutely supportive of the idea that there shouldn't be any increases in taxes," Kyl said.
Renewing the tax cuts for everyone would cost the government almost $4 trillion over the next decade, according to congressional analysts, who also assume that Congress won't allow the alternative minimum tax to hit millions of middle class taxpayers with eye-popping tax hikes.
With polls showing broad public anger over spiraling federal deficits, Obama wants to exclude individuals earning over $200,000 and couples making over $250,000 - who account for $700 billion of that $4 trillion total. They represent about 3 percent of taxpayers, according to the Tax Policy Center, a Washington think tank.
"Only in Washington could someone propose a tax hike as an antidote to a recession," GOP leader Mitch McConnell of Kentucky said.
McConnell Stands Firm: No Partial Tax Cut Extension
McConnell has said a bill extending the tax cuts for only low- and middle-income earners cannot pass the Senate, but he declined to reiterate that threat on Monday. Republicans control 41 seats, the minimum needed for a successful bill-killing filibuster, though McConnell spokesman Don Stewart declined to say whether all 41 Republicans would support a filibuster.
To amplify his point, McConnell on Monday introduced a bill to extend to Bush tax cuts indefinitely for all income ranges.
Some Democrats, like Sens. Kent Conrad of North Dakota, Evan Bayh of Indiana and Ben Nelson of Nebraska, are siding with Republicans against raising taxes on anyone during a fragile economic recovery.
"I don't think it makes sense to raise any federal taxes during the uncertain economy we are struggling through," Sen. Joe Lieberman, a Connecticut independent who aligns with Democrats, said Monday. "The more money we leave in private hands, the quicker our economic recovery will be. And that means I will do everything I can to make sure Congress extends the so-called Bush tax cuts for another year."
But Lieberman said he would not vote to hold up extension of the middle-class cuts to win leverage to extend those for wealthier people as well.
At issue is a year-end deadline to renew a variety of tax cuts enacted in 2001 - when the federal government was running a surplus. They include lower rates, a $1,000 per-child tax credit, relief for married couples, and lower taxes on investments and large estates.
On Sunday, House GOP leader John Boehner said he would support renewing tax cuts for the middle class but not the wealthy if that was his only choice. Though Boehner was clear that he supports extending the full range of tax cuts, the White House jumped on his remarks as a possible change of heart.
Boehner has proposed a two-year extension of the Bush-era tax cuts, which would push the question into the 2012 presidential election. Obama has declined to say that he'd veto such a plan.
Democrats are worried that November elections could hand the GOP control of the House and perhaps the Senate. The White House and its Democratic allies hope to use the tax-cut fight to cast themselves as defenders of the middle class and Republicans as a party eager to revive the days of a still-unpopular former president, George W. Bush.
"We're going to take the next 50-some days to convince the public that's exactly what the Republicans would do - back to the Bush policies," said White House press secretary Robert Gibbs said on NBC's "Today" show.
"We could get (tax cuts) done this week, but we're still in this wrestling match with John Boehner and Mitch McConnell about the last 2 to 3 percent" of upper-income taxpayers, Obama said Monday during a backyard town hall in a Northern Virginia suburb.
Gibbs said the middle class should not be used as a political football by Republicans maneuvering to give tax cuts to wealthy taxpayers, who he said don't need the reductions. Republicans say paring taxes for the wealthy would encourage them and the businesses they operate to create jobs.
Republicans, for their part, say that it's not just the rich who would be hit by Obama's tax hike on upper-income people. Many small businesses - that earn about half of all small business income - would also face the tax hike.
"No American should face a tax increase in January ... not one," said Indiana Rep. Mike Pence, the No. 3 House Republican. "We will not compromise our economy to accommodate the class warfare rhetoric of this administration."
© 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Senate GOP leaders declared on Monday that Republicans are, to a person, opposed to legislation that would extend only middle-class tax relief - which Obama has repeatedly promised to deliver - if Democrats follow through on plans to let tax rates rise for the wealthiest Americans. The GOP senators forcefully made their case one day after House Republican leader John Boehner suggested he might vote for Obama's plan if that ends up the only option.
Both Republicans and Democrats are using the looming expiration of Bush-era tax cuts as a defining battle in elections to determine control of Congress.
CBSNews.com Special Report: Campaign 2010
It would take numerous Democratic defectors to pass the Republicans' version - extending all the Bush tax cuts - or the issue could be left for a postelection congressional session if Republicans block the measure with a filibuster. Obama last week declined to say whether he would veto a bill that preserved the tax breaks for the wealthy.
On Sunday, Boehner said he would support renewing tax cuts for the middle class but not the wealthy if that was his only choice. Though Boehner was clear that he supports extending the full range of tax cuts, the White House jumped on his remarks as a possible change of heart.
Geithner Welcomes GOP Support for Tax Plan
But Sen. Jon Kyl of Arizona, the GOP whip, said Monday his party won't give ground.
"Just before the recess we had a meeting and we discussed this, and every Republican was absolutely supportive of the idea that there shouldn't be any increases in taxes," Kyl said.
Renewing the tax cuts for everyone would cost the government almost $4 trillion over the next decade, according to congressional analysts, who also assume that Congress won't allow the alternative minimum tax to hit millions of middle class taxpayers with eye-popping tax hikes.
With polls showing broad public anger over spiraling federal deficits, Obama wants to exclude individuals earning over $200,000 and couples making over $250,000 - who account for $700 billion of that $4 trillion total. They represent about 3 percent of taxpayers, according to the Tax Policy Center, a Washington think tank.
"Only in Washington could someone propose a tax hike as an antidote to a recession," GOP leader Mitch McConnell of Kentucky said.
McConnell Stands Firm: No Partial Tax Cut Extension
McConnell has said a bill extending the tax cuts for only low- and middle-income earners cannot pass the Senate, but he declined to reiterate that threat on Monday. Republicans control 41 seats, the minimum needed for a successful bill-killing filibuster, though McConnell spokesman Don Stewart declined to say whether all 41 Republicans would support a filibuster.
To amplify his point, McConnell on Monday introduced a bill to extend to Bush tax cuts indefinitely for all income ranges.
Some Democrats, like Sens. Kent Conrad of North Dakota, Evan Bayh of Indiana and Ben Nelson of Nebraska, are siding with Republicans against raising taxes on anyone during a fragile economic recovery.
"I don't think it makes sense to raise any federal taxes during the uncertain economy we are struggling through," Sen. Joe Lieberman, a Connecticut independent who aligns with Democrats, said Monday. "The more money we leave in private hands, the quicker our economic recovery will be. And that means I will do everything I can to make sure Congress extends the so-called Bush tax cuts for another year."
But Lieberman said he would not vote to hold up extension of the middle-class cuts to win leverage to extend those for wealthier people as well.
At issue is a year-end deadline to renew a variety of tax cuts enacted in 2001 - when the federal government was running a surplus. They include lower rates, a $1,000 per-child tax credit, relief for married couples, and lower taxes on investments and large estates.
On Sunday, House GOP leader John Boehner said he would support renewing tax cuts for the middle class but not the wealthy if that was his only choice. Though Boehner was clear that he supports extending the full range of tax cuts, the White House jumped on his remarks as a possible change of heart.
Boehner has proposed a two-year extension of the Bush-era tax cuts, which would push the question into the 2012 presidential election. Obama has declined to say that he'd veto such a plan.
Democrats are worried that November elections could hand the GOP control of the House and perhaps the Senate. The White House and its Democratic allies hope to use the tax-cut fight to cast themselves as defenders of the middle class and Republicans as a party eager to revive the days of a still-unpopular former president, George W. Bush.
"We're going to take the next 50-some days to convince the public that's exactly what the Republicans would do - back to the Bush policies," said White House press secretary Robert Gibbs said on NBC's "Today" show.
"We could get (tax cuts) done this week, but we're still in this wrestling match with John Boehner and Mitch McConnell about the last 2 to 3 percent" of upper-income taxpayers, Obama said Monday during a backyard town hall in a Northern Virginia suburb.
Gibbs said the middle class should not be used as a political football by Republicans maneuvering to give tax cuts to wealthy taxpayers, who he said don't need the reductions. Republicans say paring taxes for the wealthy would encourage them and the businesses they operate to create jobs.
Republicans, for their part, say that it's not just the rich who would be hit by Obama's tax hike on upper-income people. Many small businesses - that earn about half of all small business income - would also face the tax hike.
"No American should face a tax increase in January ... not one," said Indiana Rep. Mike Pence, the No. 3 House Republican. "We will not compromise our economy to accommodate the class warfare rhetoric of this administration."
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"THE RICH" ALREADY PAY HALF OF ALL INCOME TAXES....LETS SEE.....3% PAY 50%....SOUNDS FAIR? """"""
YES this sound not fair enough. If 10% of this ocuntyr own 90% of this ocuntries wealth then that 10% should pay for 90% of the infrastructure.
because if there is no infrastucuture there is no wealth... and htose that benefit the most beenfit off of the back of this ocuntires infrasturucture
NOW if you want more people ot pay a fairier share of taxes then I suggest pushing the welath down to the workers more... When you push the wealth down to the workers in the form of bvetter wages, better benefits, the workers wil lspend more money, pay more taxes, and generatre more tax revenue.
When the workers are spending businesses need ot higher more employees ot keep up with the demand, which means more workers and ore demand etc...
If we want to fix this country, and htis economy it will only happen when the workers get a much fairer stake in the wealth this ocuntry has....
if this is not a plan your republicans want then accept the fact that the country is dead and more small businesses will go belly up because the workers won't be spending the money they don't have.
Wake up... wealth was pushed upwards for 30+ years, and that is why our economy is in a tail spin.. You killed the spending power of the workers, and exchanged it with an economy based on equity and credit which all came to crash while wages stagnated and benefits were stripped from workers... Yes its true... but I'm sure the righ twingers here will muster up some more half truths and self interest posts that do nothign to fix the problems....
Also, the Federal deficit has gone down 8% in the first half of 2010: http://www.reuters.com/article/idUSN1221782220100413
lumos,
"if we continue with MORE OF THE SAME by the GOP policies"
News flash, it has been the Democrat policies that have been in control of congress since Jan. 2007, almost 4 years now.
Right, and it was the derivatives and garbage mortgages created and written from 2001 - 2008 that were the problem.
Why don't you tell us what laws the democrats passed in 2007, that caused the economic meltdown?
The real world, CSPAN coverage of hearings into Fannie Mae and Freddie Mac in 2004 and 2005. Who tried to stop it and who where the ones fighting the "Regulator"?
Which pieces of congressional and senate legislation are you referring to?
There WERE laws proposed, passed, and signed by the republicans in charge - right?
President Obama kept giving them more and more money and then converted the debt/loan to common stock which was unprecedented in American history, now the American tax payers own GM. Priceless.......
Converted the debt / loan to common stock and SOLD IT, putting the money back into the Treasury where it originally came from, cutting our ties to GM.
Why are you lying?
http://www.cbsnews.com/stories/2010/09/14/business/main6864975.shtml
"Insurance giant American International Group Inc. is discussing plans with the government to fully repay the government bailout it received two years ago, according to a report in the Wall Street Journal"
http://online.wsj.com/article/SB10001424052748704869304574595600479204352.html
"Citi, Wells to Repay Bailouts
Last Big Banks to Shake Off Government Aid; Milestone for Recovery of Financial System"
One man does not create a budget, it belongs to congress. Our government is made up of checks and balances. Congress is just as much to blame as any President.
The budgets under President Bush averaged $240 Billion dollar deficits.
The budgets under President Obama average $1.4 Trillion dollar deficits.
Both are very bad, which is worse?
Where did the $1.4 TRILLION deficits come from? (It was a projected annual $1.3 TRILLION AS OF 1/20/09.)
The Bush Tax Cuts, the 2005 Medicare Part D overhaul, the Iraq War and subsequent increases in veteran health care costs, out of control health care costs for government employees......
But you blame EVERYTHING on Obama for the stuff he was handed, right?
Also, the Federal deficit has gone down 8% in the first half of 2010: http://www.reuters.com/article/idUSN1221782220100413
"In their sties with all their backing
They don't care what goes on around
In their eyes there's something lacking
What they need's a damn good whacking."
- G. Harrison.