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Tax Cut Showdown: Dems' Two Options

Must win centrists as Bush cuts expire

By Matt Cantor,  Newser Staff

Posted Dec 1, 2010 11:47 AM CST

(Newser) – When it comes to tax cuts, the Democrats’ options are few. Politically speaking, it’s too late to force the expiration of Bush cuts on those earning more than $250,000. But Dems have two notable choices, writes David Leonhardt in the New York Times: one, to let the Bush cuts expire for those earning more than a million dollars—a “millionaire’s tax”; or two, to extend all the cuts, but link them to other measures to help the economy.

Those might include tax cuts for companies that hired new workers and extending unemployment benefits. For Democrats to prevent a filibuster, they must devise a plan that can win over centrist Dems and at least two Republicans. The millionaire plan “would probably do more long-term good than any of the other remaining options,” and it would let Dems call themselves “friends of the middle class.” But it would be a political gamble.

Senate Majority Leader Sen. Harry Reid of Nev. gestures during a news conference on Capitol in Washington, Tuesday, Nov. 30, 2010.
Senate Majority Leader Sen. Harry Reid of Nev. gestures during a news conference on Capitol in Washington, Tuesday, Nov. 30, 2010.   (AP Photo/Manuel Balce Ceneta)
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COMMENTS
Showing 3 of 10 comments
gilgordan
Dec 2, 2010 1:22 PM CST
Once again elected officials are not focused on real issues effecting America. People making 1+Million are not primary job creators, they are excess funds savers and investors. No one yet has shown any proof that these people are responsible for creating jobs. One could argue their investments and savings are to companies that create jobs. B---S--T. Job creation is driven by individual incentive to gain more, and the passion, fortitude and faith to make it happen. When the Chinese Communist Party, gave incentives over and above quotas to their agricultural sector in 1979, the farmers exceeded quota consistently within 9 months and the other 3 months production was theirs to keep. It is the ability to produce, market and do again that drives jobs. It you do not produce anything, all other options are services for others that do. Congress must focus and eliminate barriers to production of competitive products globally in order to restore the industries and jobs they let get away in the last 30 years. Old saying, make no income then no taxes, no taxes no government.
cornelison
Dec 2, 2010 12:22 AM CST
This article doesn't match what's in the news. The expiration of the tax cuts is set. Being too late to do something about it makes no sense. The Dems don't want to give wealthy Americans a continued tax break that will cause the country to plunge deeper into debt. If the GOP won't do any action on any other legislation until the rich get to keep their tax cut, the Dems. should not fall for this ultimatum. The GOP has dangled carrots in front of the Dems for 2 years. The result was betrayal & the votes were always "NO." The GOP knows that The President is weak & he's deserted his own party. The only leadership we're getting from the Dems. is Nancy Pelosi. She must be really steamed.
Nora_Kit
Dec 1, 2010 10:48 PM CST
I am sorry, but I was a small business bookkeeper all my life and worked for several of them. You cannot convince me that people earning over $250,000 a year are small business people. These are not the small business people that are putting other people to work. These have to be CEOs or Wall Street earners or lawyers etc.

 
Congress • Senate Democrats • Senate Republicans • budget • millionaires • tax cuts • congressional Democrats • budget deficit • economy • budget crisis • David Leonhardt • Bush tax cuts

 
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