Home

Democrats Meet on Tax Cuts
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Congress has almost adjourned for the year and when it is gaveled back into session in January, there will be a new Speaker of the House – thanks to the sweeping victories Republicans achieved in the midterm elections.  But the people’s business is not yet done for the year and the lame duck Congress is getting ready to move on extending the Bush tax cuts, which will otherwise expire on December 31.  Neither party wants to be held responsible for a tax increase in the midst of a slow economic recovery, so in theory this should be a done deal – but not so fast.
Democrats, who still hold majorities in both houses until the new class arrives in January, want to let the tax cuts expire for those making more than a quarter of a million dollars per year, while Republicans insist on extending the tax cuts for everyone.  This is a tough sell for a party that ran on fiscal responsibility given the size of the projected deficit and the cost of extending the tax cuts, and it is rapidly becoming an even tougher sell with the deal Senate Republicans reached with their Democrat counterparts and the White House.  Under the proposed compromise, all the tax cuts will be extended and Congress will approve an extension of unemployment benefits for the nearly two million Americans set to lose them this holiday season.  This combination of decreased revenue and increased spending is precisely the type of government that the Republican party ran against this year, but it is Democrats that are more likely to kill the deal.
Under the Constitution, it is the House that must originate all tax bills and the House bill that passed limits the extension of the tax cuts to the Democrat’s preferred group of those making less than $250,000.  If the Senate approves the compromise bill, as is expected, it will have to go back to the House for another vote.  In order to get past the House, at least 39 Democrats will have to support the bill, and that’s assuming that it wins unanimous approval from House Republicans which is far from certain.  Normally, the political and electoral pressures of passing tax cuts and unemployment extensions in a bad economy would be enough to ensure approval, but this is a lame duck session and outgoing representatives of both parties face no political repercussions for voting their conscience.  Several Democrats have privately voiced opposition to the bill, putting Nancy Pelosi, still Speaker for the rest of the month, in a tough spot.  As a member of the liberal wing of her party, she now needs to convince her allies in the House to support a measure that none of them find palatable, without it appearing that Democrats have caved to right wing pressure.  The topic is reported to have been the subject of a two hour meeting between Democrats leadership and the White House this weekend.



 

RELEVANT JOBS

Senior Corporate Counselor - Remote

USA-NY-New York City

We are an innovative, intent-driven company that believes in building the future and we are looking ...

Apply now

Associate Attorney

USA-FL-Coral Gables

Job details Salary $52,000 - $75,000 a year Job Type Full-time Number of hires for th...

Apply now

Director, Legal & Government Affairs

USA-FL-Lakeland

  Director, Legal & Government Affairs Lakeland, FL CLICK HERE TO APPLY JOB SUMMARY...

Apply now

Attorney 0-3 Years Experience

USA-CA-Woodland Hills

San Fernando Valley Defense Firm seeks attorney with 0-3 years of workers\' compensation experience....

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Junior to Mid-level Investment Management Associate Attorney

USA-NY-New York City

New York City office of a BCG Attorney Search Top Ranked Law Firm seeks junior to mid-level investme...

Apply Now

Mid-level Debt Finance Associate Attorney

USA-CA-San Francisco

San Francisco office of a BCG Attorney Search Top Ranked Law Firm seeks mid-level debt finance-focus...

Apply Now

Senior Business and Corporate Law Attorney

USA-CA-Murrieta

Murrieta office of our client seeks a senior business and corporate law attorney with 3+ years of bu...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top