Democratic procedural votes on extending Bush tax cuts fail in Senate

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Washington (CNN) - Two Senate procedural votes on Democratic measures to extend George W. Bush-era tax cuts for people who are not super wealthy failed on Saturday, preventing the measures from moving forward.

The votes sought to extend the Bush tax cuts for families making under $250,000 and $1 million, respectively.

Both votes garnered the support of 53 senators, but the Democrats needed 60 votes to end debate.

"I am very disappointed that the Senate did not pass legislation that had already passed the House of Representatives to make middle class tax cuts permanent," President Barack Obama said afterward.

"I continue to believe that it makes no sense to hold tax cuts for the middle class hostage to permanent tax cuts for the wealthiest two percent of Americans," he said, "especially when those high income tax cuts would cost an additional $700 billion that we don't have and would add to our deficit."

Senate Minority Leader Mitch McConnell of Kentucky said he is still hopeful about reaching a deal on tax cuts.

"Discussions continue," McConnell said at a news conference. "I am hopeful we will be able to resolve this. I am relatively confident that the end of this process will lead us to a very sensible decision not to raise taxes on anybody during a recession."

Despite the realization that neither would get the 60 votes to succeed, many Democrats said before the vote they wanted to get on-the-record in support of extending the lower rates to lower earners. They also want to contrast their ideas with Republican proposals to extend tax cuts for everyone, even those who are very wealthy.

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ypm968

Republicans want tax cut extension to everyone including the super riches.


Senate Rejects Tax-Cut Proposals as Talks Continue (Update2)
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By Ryan J. Donmoyer and Peter Cohn

Dec. 4 (Bloomberg) -- The U.S. Senate rejected two tax-cut extension proposals in procedural votes as talks continued that lawmakers say likely will result in renewal of lower rates for all taxpayers.

The votes followed passage Dec. 2 in the House of a measure that would extend tax cuts only on the first $200,000 of individual income and $250,000 for a married couple, setting the stage for the emergence of compromise legislation.

Senator Robert Corker, a Tennessee Republican, said today that congressional and administration negotiators likely will reach an agreement by the end of next week on tax-cut extensions.

“There’ll be a deal by the end of next week,” Corker said today. “It’ll be existing policy, in my opinion, and maybe some other attachments.”

In today’s voting, largely along party lines, the Senate rejected, 53-36, a measure to extend Bush-era tax policies set in 2001 and 2003 on the first $200,000 of an individual’s income and $250,000 for a married couple. A second proposal to set that threshold at $1 million also failed, 53-37. The votes fell short of the 60 necessary to clear procedural hurdles and pass.

Democratic Opposition

Four Senate Democrats and independent Joe Lieberman of Connecticut joined all present Republicans today in opposing the first measure setting the tax-cut threshold at $250,000. They included Russ Feingold of Wisconsin, Joe Manchin of West Virginia, Jim Webb of Virginia, and Ben Nelson of Nebraska.

Lieberman and Feingold also voted with three other Democrats in opposing the $1 million threshold. They included Tom Harkin of Iowa, Richard Durbin of Illinois, and Jay Rockefeller of West Virginia.

Lawmakers and administration officials have said a compromise likely would extend lower tax rates on income and capital gains and dividends for all Americans, including high- income taxpayers, for two or three years.

Republicans oppose extending only the middle-income tax cuts, saying selective extensions would hurt job creation and economic growth.

Obama Disappointed

President Barack Obama told reporters in Washington today that he’s “very disappointed” the Senate failed to end an “impasse” over the expiring tax cuts.

“We need to redouble our efforts to resolve this,” he said. Obama said he wants the issue resolved “in the next few days.” He also said Congress must pass an extension of jobless benefits.

The votes this week gave Senate Democrats an opportunity to express displeasure with Obama and Republicans who’ve railed against budget deficits for allowing the Bush-era tax cuts to continue for those with the highest incomes.

During the floor debate, Majority Leader Harry Reid of Nevada compared Republicans with the character Lucy in the “Peanuts” comic strip gag where she repeatedly tricks Charlie Brown by inviting him to kick a football, only to yank the ball away at the last second.

“It’s obvious by now that our Republican friends have drawn their political strategy from this cartoon,” Reid said. “We’ve all heard Republicans weep for the deficit. They’ve pulled away the football and said rather than reduce the deficit, we’d really rather give an unnecessary, unwanted, unaffordable handout to the richest of the rich.”

Reid’s Schedule

Even as lawmakers talked of a deal, Reid was scheduling matters other than tax cuts for Senate floor time next week. That led Senate Minority Leader Mitch McConnell of Kentucky to say Reid was clogging the year-end agenda with less pressing legislation.

The floor agenda includes procedural votes on, among other things, an immigration bill, impeaching a federal judge, and compensation for workers injured while cleaning up the World Trade Center after the Sept. 11, 2001, terror attacks.

“I think it’s time for the games to stop,” McConnell said.

The first bill rejected today was offered by Senate Finance Committee Chairman Max Baucus. In addition to extending lower tax rates for middle-income taxpayers, it would retain the 15 percent tax rate on capital gains and dividends for people earning under $250,000, who comprise about 97 percent of all taxpayers. Higher tax rates would be allowed to take effect Jan. 1 on higher incomes.

The Baucus bill also reinstates dozens of expired business tax breaks, rolls back a $66 billion alternative minimum tax increase on the books for 2010, and reinstates a federal tax on multimillion-dollar estates that lapsed this year for the first time in nearly a century.

The second bill, preserving the tax cuts on the first $1 million of income, was proposed by Senator Charles Schumer, a New York Democrat.

To contact the reporters on this story: Ryan J. Donmoyer in Washington at rdonmoyer@bloomberg.net; Peter Cohn in Washington at 654- 7306 or pcohn@bloomberg.net.

To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net

Last Updated: December 4, 2010 15:20 EST

colderdown

Democratic is freaking crazy. More than half of American don't pay tax at all and Democratic are talking lower tax for low earners? Stop BS people!!!!

trueself

Democratic is freaking crazy. More than half of American don't pay tax at all and Democratic are tal ...
colderdown 发表于 2010-12-5 00:04