GOP leader nixes talk of taxing
On Monday, Sen. Joe Lieberman, a Connecticut independent who aligns with Democrats, said, “I don’t think it makes sense to raise any federal taxes during the uncertain economy we are struggling through.”
“The more money we leave in private hands, the quicker our economic recovery will be. And that means I will do everything I can to make sure Congress extends the so-called Bush tax cuts for another year,” he said.
Others, including Sen. Jim Webb, Virginia Democrat, have said the proposals should not draw a distinction at $250,000.
Still, Mr. Obama continued to make his case Monday that higher-income taxpayers - individuals making more than $200,000 and families with incomes higher than $250,000 - can afford to take the hit, and that the government needs the money.
“We’re still in a still in this wrestling match with John Boehner and Mitch McConnell,” he said.
Extending the tax cuts for the wealthiest 2 percent to 3 percent of Americans would cost $700 billion over 10 years, “and we just can’t afford it,” he argued. “The vast majority of Democrats” agree.
Business advocates, though, say that because of the way they are structured, many small businesses pay taxes as individual filers, thus the tax increases will hit them at a time when they are already suffering.
Congressional analysts say renewing the tax cuts for everyone would cost the government $4 trillion over the next decade. Republicans are banking on the fact that even though voters are enraged by deficit spending they won’t want to give up tax breaks in a sputtering economy.
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