Top Democrat: We won't budge on Bush-era tax cuts

Sen. Patty Murray

/ Elaine Thompson

(CBS News) With Congress preparing to tackle a series of controversial tax and budget issues this fall, Democrat Sen. Patty Murray is warning Republicans that Democrats are not planning to stand down in the ongoing battle over extending Bush-era tax cuts for the wealthy.

Murray, speaking to the Brookings Institute Monday, warned Republicans that she and others in her party are prepared to let tax cuts for all Americans expire if Republicans don't work with them on a deal to end Bush-era tax cuts for wealthy Americans.

"We don't want to increase revenue for the sake of increasing revenue. Of course not. But as a nation, we need to pay for the services and programs the American people want. We need to rein in the deficit and debt--and we need to do that in a responsible way," said Murray, the chair of the Democratic Senatorial Campaign Committee.

"Unlike last year, the consequences of gridlock could start to be felt immediately. Millions of jobs could be lost through the automatic cuts, programs families depend on would be slashed irresponsibly across the board, and middle class tax cuts would expire," she continued. "And once again, if Republicans won't work with us on a balanced approach, we are not going to get a deal."

If the Bush-era tax cuts are allowed to expire at the end of the year, taxes will go up for all Americans. President Obama favors letting those cuts expire for Americans earning more than $250,000 while extending them for everyone else; most Republicans want to extend the Bush-era tax cuts for everyone.

In addition to the expiration of the Bush-era tax cuts, January 1, 2013 marks the day when $1.2 trillion worth of budget cuts spread across domestic and defense programs begin to go into effect unless Congress can reach a deal to offset them. Those automatic "sequester" cuts, spread over 10 years, are the result of the failure of the congressional "super committee" to reach an agreement to reduce the deficit as mandated by the deal last August to raise the debt ceiling. Also set to expire January 1 are some unemployment benefits and a deferment of payment cuts to Medicare physicians.

In a Monday afternoon statement, the Senate Republican Communications Center blasted Democrats for admitting a "willingness" to go over the so-called "fiscal cliff."

According to a May report released by the nonpartisan Congressional Budget Office, unemployment would rise and "the first half of 2013 would probably be judged to be a recession" if Congress does not act to stop the sequester and keep taxes from increasing.

That isn't stopping Democrats from playing hardball to reach a deal.

"I feel very strongly that we simply cannot allow middle class families and the most vulnerable Americans to bear this burden alone," Murray said on Monday. "It's just not fair."

[TimeToEvolve]

America really lost it when we bought into Reaganomics. No matter how much lipstick they put on the pig, the fake free market scam has failed.

But now you have the ultimate corporation takeover of all power going on. Wall Street has their perfect plastic, parasitic puppet in Robme to continue their failed scam. Lije Reagan before.

Are we really going to make this year be the end of liberty and freedom for the American worker. That is clearly what the Republicons have in mind.

[OweninNJ]

I'm listening to some of these comments that the "rich" and "millionaires" aren't going to be hurt by paying more taxes...blah, blah blah. A combined income of 250K is rich? That amount equals millionaire? What the h*ll is wrong with people? I run a small business and under the current tax code I file my income from the business as personal income because it's the best option to protect my income. With my wife working getting to 250k combined income after many years of hard work and sacrifice is now out of the question. If that's the marker, 250, don't the dems understand what people like me are going to do? I will cease to expand my business so that I don't get caught crossing that threshold so as to avoid, as proposed by the president an almost 18% increase in my taxes. If my wife and I earn over the 250 mark, we actually take home less money. Who in their right mind is going to do that?

[TimeToEvolve]

Compared to the average income of Americans of like $50K, yes. And he is not talking about raising taxes on the 1st $250K, only on the amount above that. And they owe us for using our commons to make that money.

[ThomasSense]

It isn't class warfare. It is everyone paying a fair share. There was a day in America when only one person had to work to support the family. The norm now is both parents have to work. When I went to college, I was able to pay my own way through. Today, kids and parents go into major debt to secure a degree.
In 1944, the top tax rate was 94%. In 1961, it was 91%. In 1980, it was 70%. The wealthy did fine through all of those years. If there is class warfare going on, it the establishment of an oligarchy. http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=213

[r9119111]

Patty Murray:
Thank you for representing the average American citizen. The Republicans through the Norquist pledge agreement have obstructed Americas forward progress long enough. Give them a taste of their own medicine. Let them know that if they had a spirit of cooperation since Ronald Reagan that conditions would have been much better today. Their zeal for obstructionism must be smashed in order to save our republic.

I'm voting for President Obama.

[smittyc]

We have 8.2% unemployment and 14.9% underemployment. We have millions of Americans who are no longer counted, they quit looking for work and the real picture is unemployment has improved somewhat and only in states like Texas and Wisconsin and several swing states which are run by Republican governors. Not most but all of the gains in employment have come in states run by Republicans while the anointed one takes credit on the national stage.

[donretired]

Let Rummy and he teabaggers stew. It will just show what they are for; the rich their friends.

[donretired]

Just like the GOP congress or is it the do nothing bunch for the the rich and tax the middle class.

[AmazingGrce]

1) Murray and her cronies are willing to sacrifice the average American well being in order to get at the rich they hate so much.
2) Murray doesn't want to see programs cut that the 'American People Want" Hey toots, I'd like a million dollar bonus too but just because I 'want it' doesn't mean I should have it or really need it.

This is typical Democratic thuggery - something Obama and crew know so well from Chicago style politics. Sen Murray if you and your partners had really done your job as the 'super committee' we wouldn't have this problem.


Bottom line - if the tax cuts aren't continue then the economy, still weak at best, will fall on it's face again. Taxing or not taxing the rich will not solve the problems this country has. The Democrats have to wake up and realize that their pet programs targeted at the minorities they want to cozy up to, are the problem with our out of control spending. That and the new Obamacare Tax that is already hitting the people of this country in terms of higher health care costs for the middle class. The rich - pffft! health care costs don't bother them. The poor, pffft, they can walk away from their debts so they don't care either or just demand service since doctors and hospitals cannot deny them care just because they can't pay. The hospitals target the middle class when a bill is overdue and they are the ones having their paycheck garnished not the poor, not the rich.

The democrats are after the votes of the poor and the radicals and they are willing to slaughter the well being of the average American to get those votes..

[freeamerica31]

With all due respect letting the tax cuts expire will not break or make this country. The tax cuts have never worked for the economy and never will because the wealthy are going to make money no matter what but with tax cuts they get wealthier exponentially and have never passed it along.

This economy is bad and no matter how much money you throw at it will not recover until 2018 - 2020. The damage is too severe. The Wall Street false DOW is ridiculously high and is simply being held up by the wealthy to steal more wealth from people dumb enough to invest back in it. Wall Street is a Ponzi Scheme and has outlived it's usefullness.

You are right taxing the rich more will not fix the economy and deficit but it will help reduce the deficit and that's the biggest point. The U.S. needs to reduce it's deficit dramatically so when the economy does rebound we have the cash flow to grow.

If you want to complain about anything, then complain why the banks shouldn't have to pay down the deficit completely since if not for the taxpayers they probably would have gone under but now their all claiming record profits again while the everyday worker struggles.

I don't agree with the health care either because it's the biggest tax on the poor and middle class. I know you believe that the Democrats are willing to slaughter the average American but the Republicans are no better...they just don't offer anything in return for your money.

[kevcl6750]

Latest estimates put the job losses from the automatic cuts and tax increases at TWO MILLION ! The revenue from the tax increases on those making 200k as individuals and couples at 250k or more amount to EIGHT DAYS of the federal budget ! This should give everyone an idea of how idiotic the Democrats in the Senate are ! So the tradeoff Patty Murray is suggesting is 8 days of federal spending or 2 million lost jobs ! She is certifiably INSANE and should be committed !

[ThomasSense]

I can't imagine the millionaires spending their time defending their tax cuts on this blog. So, why are there middle class people doing it? Don't they know they aren't getting a fair deal? Don't they know that their taxes are the lowest than have ever been in modern history? Don't they know that the gap between the rich and the rest of us is getting wider? Do they not realize that their wages have been stagnant but the rich people's income has increased dramatically? Do they not see that super pacs are stealing their voice on issues and warping their minds? The wealthy use to be taxed twice as much as now and did quite well then.

[ThomasSense]

In 2008, it was only 2% of all households! You make it sound like it is cities full of people.

[ThomasSense]

Mitch McConnell is up for reelection in 2 years. He has a ton of money already. If he decides to jump off of this fiscal cliff, then there might be a chance to beat him. The only problem he has tied a rope to Americas legs and will drag us with him.

[smittyc]

Pelosi was broke when Obama took office, current worth 35million. Senator Kerry is currently worth 350 million. MY point is both sides of the aisle here. Obama stanchest supporters include Bill Gates, Warren Buffet, Soros and a host of other billionaires both Americans and foreigners who have all reaped more billions during Obamas tenure and due to his domestic spending and foreign aid.

[ThomasSense]

I don't know of Mitch's personal wealth. But he has 16 million dollars in campaign money already. Special interests are getting their money's worth.