Senate Blocks Middle Class Tax Cut Extension
Posted By thestatedtruth.com on December 4, 2010
As expected the Senate votes No on tax deal…..around and around we go, where we stop nobody knows! Democrats are demanding a one-year renewal of jobless benefits for hundreds of thousands of Americans or no deal on tax cuts. The benefits begin to expire this week.  But….Obama’s top economic advisers are in talks with key lawmakers on a potential deal that could renew all the lower rates, including those for the wealthiest, for one to three years, according to congressional aides.
From Reuters:
The two Democratic plans to renew low tax rates for individual income up to $200,000 and up to $1 million both failed in procedural votes, as Republicans argued that low tax rates for the wealthiest should also be extended.
No Republicans backed the Democratic proposals, and a few Democrats voted against them.
President Barack Obama expressed disappointment on Saturday and said negotiators needed to “redouble” their efforts in the next few days to reach an agreement on the tax cuts. He said doing so “will require some compromise.”
The rare Saturday votes were expected to fail, but Democrats wanted to show that they didn’t support an extension of the lower rates for higher-income individuals.
“It’s not that we want to punish wealthy people,” said Democratic Senator Charles Schumer, who had proposed extending the tax rates for those earning up to $1 million. “But they are doing fine and they are not going to spend the money and stimulate the economy.”
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