Senate Rejects Obama’s Plan on Extending Tax Cuts

[WestVirginiaRebel]

NY Times:

WASHINGTON — The Senate on Saturday rejected President Obama’s proposal to let tax rates rise for the highest-income Americans, as Republicans held firm in their push to continue all of the expiring Bush-era tax cuts.

The White House and Congressional leaders are now discussing a deal to extend the reduced tax rates at all income levels, at least temporarily, perhaps for two years.

But with Senate Democrats and the White House badly splintered, and some lawmakers increasingly angry at the idea of sustaining President George W. Bush’s economic policies, the prospects of a compromise remained uncertain.

But with Senate Democrats and the White House badly splintered, and some lawmakers increasingly angry at the idea of sustaining President George W. Bush’s economic policies, the prospects of a compromise remained uncertain.

The floor action on Saturday highlighted the volatility of the issue. Mr. Obama’s plan, approved by the House on Thursday, would have extended the lower rates on income up to $250,000 a year for couples and $200,000 for individuals, but Democrats did not have the 60 votes required under Senate rules to muscle it forward.

Nor could they muster the votes needed for an alternative proposal, championed by Senator Charles E. Schumer, Democrat of New York, to end the breaks only on income exceeding $1 million.

Republicans, joined by a handful of Democrats, voted unanimously against both proposals. Most Democrats said that showed them siding with “millionaires and billionaires” over the middle class. Republicans said they were refusing to let taxes rise for anyone, given the continuing weakness in the economy.
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Welcome to the next two years, Mr. President...