HuffPo lead story (via McClatchy): "Democrats unlikely to repeal tax cuts for the rich"

[Amerigo Vespucci]

Photo from the HuffPo home page, which links to the McClatchy article.

http://www.mcclatchydc.com/2010/09/01/99992/democrats-unlikely-to-repeal-tax.html

By David Lightman | McClatchy Newspapers

WASHINGTON — Democrats in Congress are poised to play a leading role this month in thwarting their party's effort to raise income tax rates on the wealthy.

Tax cuts enacted in 2001 and 2003 expire at the end of this year. President Barack Obama and Democratic congressional leaders have been eager to extend the breaks for individuals who earn less than $200,000 annually and joint filers who make less than $250,000. Those who earn more would pay higher, pre-2001 rates starting next year.

However, a small but growing number of moderate Democrats are balking at boosting taxes on the rich. Many face electorates that recoil at the mention of any tax increase. Some represent areas that are loaded with wealthier taxpayers. Further, some incumbent senators who don't face voters this fall are reluctant to increase taxes on anyone while the economy remains sluggish.

Without their support, the push to raise rates on the rich probably will fail.

"The economy is very weak right now. Raising taxes will lower consumer demand at a time when we want people putting more money into the economy," said Sen. Evan Bayh, D-Ind., who isn't seeking re-election.

Democratic leaders still vow a big effort this month to boost the top tax brackets, now 33 and 35 percent, back to 36 and 39.6 percent, the rates that were in effect in the 1990s. Both House of Representatives Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Harry Reid, D-Nev., who faces a tough re-election fight, want a vote before the election Nov. 2.

"We still expect to have a bill on the (Senate) floor at some point in September," Reid spokesman Jim Manley said. "Whether Republicans will allow us to pass anything is a whole other story."

"The speaker and the president have been clear they want to extend the middle-class tax cuts because they have the greatest economic benefit," Pelosi spokesman Brendan Daly said.

Many Democrats and Republicans are eager for a tax cut battle, seeing it as emblematic of each party's economic principles.

"Now the administration is calling for a massive tax hike on small businesses in the middle of a recession," said Senate Republican leader Mitch McConnell of Kentucky, who maintains that higher rates on the wealthy would hit small business hard, a point the Obama administration disputes.

"So it's no surprise," McConnell added, "that most Americans think the country is on the wrong track and that Democrat policies have failed to do anything to fix their top concern, the economy."

[Warren Stupidity]

1. F'd again.

[NC_Nurse]

2. Indeed.

[elocs]

3. Wow! Who would have thunk it?

http://www.youtube.com/watch?v=J6_1Pw1xm9U

[napi21]

4. Then I'm going to campaign for Obama to veto their renewal bill!

I can't, or won't bother to contact MY rep or sens because they're both RW idiots, but I sure will contact everyone I know in other districts & states and tell them to contact their congresspeople and bitch! Far too many things have already been passed where at least some of the financing depends on the repea of those tax cuts. I'm more than willing to have mine go up to what they were under Clinton (Yes I make well under $250,000) to see the rich get richer at the Country's expense!

[rhett o rick]

8. Has the President taken a stand on this issue? nm

[samplegirl]

5. This is just not right..........

why do we even vote?

[samplegirl]

6. This is just not right..........

why do we even vote?

[applegrove]

7. Ouch. This hurts.

[zbdent]

9. Excuse me Democrats ...

the tax cuts are still in effect, as are the high "deductible" on the Inheritance Tax (oops, sorry, I should have used the trademarked phrase "Death Tax").

And the economy still sucks!