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Congress Delays Vote on Bush Tax Cuts Until After Elections

1 year ago
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With a potentially bruising election less than six weeks away, Democrats on Capitol Hill came to an impasse Thursday over what to do about the Bush tax cuts. The result was a decision to do nothing, at least until after the elections, when Congress comes back to Washington for a lame duck session.

For weeks, Republicans have happily watched from the sidelines as liberal and moderate Democrats have struggled to agree on the best course of action, both politically and on policy grounds, with the Bush-era tax policy that Democrats describe as a "time bomb." All of the tax cuts -- including those on income, estates and dividends, as well as the child tax credit, the marriage penalty and the Alternative Minimum Tax -- will return to 2001 levels (as the legislation originally called for) unless Congress acts this year.

Harry Reid, Dick DurbinLiberal members on Capitol Hill have insisted that voting to make the cuts permanent for people making less than $250,000 would not only prove their commitment to the middle class but would also add less to the ballooning deficit. Conservative and moderate Democrats, meanwhile, argued that Congress should not allow any tax rates to go up in the middle of the country's economic downturn.

At the same time, at least a dozen House Democrats, several Democratic candidates and five Democratic senators -- Evan Bayh of Indiana, Ben Nelson of Nebraska, Joe Lieberman of Connecticut, Kent Conrad of North Dakota and Jim Webb of Virginia -- have said they want to see the tax cuts extended for all Americans, at least temporarily.

Republicans, in the meantime, have remained nearly unanimous in their message to make the cuts permanent for all earners. Only Ohio Republican Sen. George Voinovich has raised concerns that extending any of the tax cuts will dangerously exacerbate the national debt.

Signs of the Democratic breakdown came early in the day Thursday after Democratic senators huddled in a closed-door session to plot out their next move on the looming issue. Sen. Richard Durbin of Illinois, the second-ranking member of the caucus, emerged from the meeting with low expectations for any progress. "The reality is, we are not going to pass what needs to be passed to change this, either in the Senate or in the House, before the election," he said.

On Thursday night, Jim Manley, a spokesman for Senate Majority Leader Harry Reid, blamed Republicans for the delay as he confirmed that the Senate will not vote on the tax cuts before the midterms.


"Democrats will not allow families in Nevada and across the country to suffer or be held hostage by Republicans who would rather give tax giveaways to millionaires and corporations that ship jobs overseas," Manley said. "We will come back in November and stay in session as long as it takes to get this done."


House Speaker Nancy Pelosi has said she wants to make the tax cuts permanent only for the middle class and has not ruled out a vote in the House before the chamber recesses next week. Majority Leader Steny Hoyer insisted Thursday that voters will know where Democrats stand on the tax cuts when they go to the polls on Nov. 2.

"We don't need to have a vote to let the American people know where we stand," Hoyer said. "Whether we do it today or we do it six weeks from today, there will be no tax increase for middle-class Americans."

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20 Comments

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Jimmy

tax cuts for all or none!!!!

September 26 2010 at 3:37 PM Report abuse rate up rate down Reply
snrar

Democrats are afraid to stand up for what they want , They have demonized the rich to try to instill class warfare and they are failing in doing so . The Democrats have been taken over by the far left and it has destroyed there party . Just like the Republicans lost there way so has have the Democrats . They have become a party of far left ideology and embracing socialism and trying to install far left policies which will change America . I reject them and there ideology on Nov 2 !

September 25 2010 at 11:51 AM Report abuse +5 rate up rate down Reply
1 reply to snrar's comment
Kenneth

qbluehen..... I disagree with you. The problem here is the different states and the income levels of those states. Connecticut,New York,Parts of New Jersey, Pennsylvania, and a few more states on the eastern area have a good many residents that make more then 250,000 per year. As a senator you have the right to represent the people of your state first. That is elects you to office. This is what makes this country so interesting you have industrial states and farming states where they have to work together. I could be a senator from a industrial state what would I care about a farming bill and just the other way.

September 26 2010 at 1:21 PM Report abuse +3 rate up rate down Reply
sysaphus71

Oh well ,this is precious....the democrats are forcing a game of chicken with the economy..... and 300 million American lives. Tax increases slow recover....period, so don't hand me that only the top 2% line ...facts are such difficult things for dems. Well, ok the dems let the INCREASE HAPPEN(it is an increase because rates were at this level for the last ten years)...will the economy wobble and go back into recession? Why do you even want to take that chance? Evidently, the dems are not capable of seeing this or don't care..... either way how long before this is reversed and what happens to the people who are victimized by these increases...death tax or bankruptcy because of additional business drop off or any number of other reasons.

September 24 2010 at 4:46 PM Report abuse +7 rate up rate down Reply
tnickerson08

I knew the democrats weren't going to extend these tax cuts for ANYONE. The democrats were just holding that carrot out there, when the Republicans said that they would consider a tax increase for the wealthy that backfired on obama.

September 24 2010 at 3:59 PM Report abuse +8 rate up rate down Reply
sahk3

Yes matt 102678 and the republicans and DINOs mentioned in the article want the biggest free lunch for those with the highest incomes. Every republican administration since Nixon has built the deficit. They may prefer not to levy taxes but they spend anyway although it is usually on killing people in other countries and building better ways to do so rather than helping people at home.

September 24 2010 at 3:39 PM Report abuse -7 rate up rate down Reply
sahk3

Correction: Lieberman not a democrat. CT dems rejected him as their representative. I believe he still caucuses with the democrats because he is afraid of being "McCained" by the republican right wing whackos ( McCained: Cowed into empty shell of former self to keep job)

September 24 2010 at 3:21 PM Report abuse -6 rate up rate down Reply
oldengineera2

Another bold move on the part of controlling Democrats to dodge responsibility before facing voters.

September 24 2010 at 3:21 PM Report abuse +6 rate up rate down Reply
rmitch1015

$3 trillion added to the national debt in 2 years and nothing to show for it except higher unemployment and more people put into poverty. Where did the money go? The ultra rich are getting richer now and always have under the dems.

September 24 2010 at 2:50 PM Report abuse +10 rate up rate down Reply
Ronald Mayfield

Is the G.O.P. in congress delay the tax cut so the rich keep ther cut's for 3 more year Ronald Mayfield

September 24 2010 at 2:09 PM Report abuse -6 rate up rate down Reply
matt102678

As I read the comments from many of you supporting the left wing progressive democrats and upon reflecting over their agenda for the last 18 months or so the entitlement mentality of most on the left continues to frighten me and brings anxiety for our future with them holding the majority in Washington. YOur left wing logic and thought process can be summed up by the following anon quote: "We've gone from a country who's popultion instinctively knew there was no such thing as a free lunch to one who's convinced itself the consumption of free lunches is a revenue generating activity."

September 24 2010 at 12:54 PM Report abuse +9 rate up rate down Reply

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