Tax Package Heads Toward High Stakes Vote in House

December 16, 2010 RSS Feed Print
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WASHINGTON  — Despite a delay, the White House pushed hard Thursday for the House to pass a tax package that would save millions of Americans thousands of dollars in higher taxes beginning Jan. 1.

Some Democratic lawmakers are seeking changes to the package that could derail the bill. Democratic leaders are staying hands-off, leaving it to President Barack Obama to persuade fellow Democrats not to put the package at risk by imposing a higher estate tax than he negotiated with Republicans.

"I think the president has been working it hard," Rep. Xavier Becerra, D-Calif., a member of the House Democratic leadership team, said Thursday.

The Senate overwhelmingly passed the package Wednesday, with broad bipartisan support. Obama is urging the House to pass it without changes, so he can sign it into law before a sweeping series of tax cuts expires at the end of December. Click here to find out more!

[See photos of the Obamas behind the scenes.]

But first, they will hold a vote on imposing the higher estate tax, backed by rebellious Democrats who say the package is too generous to the wealthy.

House Democratic leaders originally arranged for a final vote on the measure by Thursday evening, but the timetable was in danger of slipping after a dispute arose over the terms of the debate.

"This is a vote people are making for their consciences, and for their districts," said Rep. Louise Slaughter, D-N.Y., chairwoman of the House Rules Committee.

House Democratic leaders are not twisting arms on the estate tax vote, Slaughter said. They are leaving that to the White House.

Many House Democrats, even critics of the bill, are resigned to it ultimately passing with the lower estate tax, especially after the Senate approved it, 81-19.

"It just seems like the momentum is with a bill that is unchanged," said Rep. Elijah Cummings, D-Md. Cummings said he will vote against the bill, despite a call from Obama earlier in the week.

The stakes are high. If the House passes the higher estate tax, the bill would go back to the Senate, jeopardizing the entire package and representing a public rebuke of Obama by members of his own party.

Tax cuts affecting Americans at every income level are scheduled to expire in a little more than two weeks. The package would extend them for two years.

The tax cuts, enacted under former President George W. Bush, include a more generous child tax credit, tax breaks for college students, lower taxes on capital gains and dividends and a series of business tax breaks designed to encourage investment. The package would also renew a program of jobless benefits for the long-term unemployed and enact a one-year cut in Social Security taxes. [Read 10 Things You Didn't Know About the Bush Tax Cuts.]

A worker making $50,000 in wages would save $1,000 under the cut in Social Security taxes. A worker making $100,000 would save $2,000.

The bill's cost, $858 billion, would be added to the deficit.

"I know that not every member of Congress likes every piece of this bill, and it includes some provisions that I oppose," Obama said. "But as a whole, this package will grow our economy, create jobs and help middle class families across the country.

Tags:
Democratic Party,
Mike Pence,
Louise Slaughter,
Chris Van Hollen,
Xavier Becerra,
Associated Press,
Mitch McConnell,
Congress,
Republican Party,
Nancy Pelosi

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The push to keep the tax cuts is O.K. but it doesn't help the retirees when they are "locked out" of a cost of living increase when the economy starts to heat up and the prices start to rise again! The inflation factor isn't included in the increases in gasoline and it will be $5.00 a gallon if some moronic politicians have their way. The financial strength of our nation has been our wealth of natural resources , oil being one of them! We shouldn't need a M.B.A. to see that fuel price increases cause inflation by increasing the manufacturing and distribution of ALL of our products. The diesel in the trucks to ship the products. The fuel for the planes and ships increases so then the costs are passed on to us! If you are working the cost to commute to your job goes? Up? Riiiiight!

The elite few in Washington, who have government limo's running at the curb waiting for them don't feel the pinch at the pump like you and I because WE are paying THEIR fuel bills and ours.

The saying that "We value to little, that which we achieve to readily" is what we see when we see Peosie using a bigger fuel guzzling plane, that we paid for, to commute between Washington and California! I'm surprised that California didn't outlaw the plane due to air pollution! The rules apply to us, the little people, and not to the our elite politicians as we saw in the $30,000/ year raise they gave themselves while their constituents took pay cuts, lost benefits, had to take on bigger work loads OR lost their jobs outright and are trying to drive to interviews for a job and have to fill the tank with $3.00+/gal. gas!

I noticed we don't call it "down sizing" anymore since the whole business CLOSES and heads overseas to countries that use child and forced labor forces!

The increases on fuel affects the poor in this country more than any other group and adversely affects our ability to compete as a nation on in the global market level. So when some moron politician says we need to INCREASE fuel prices you can rest assure that he flunked economics 101 OR he represents a state that has a lot of oil wells!

Lee Hansen of MI 10:01AM December 17, 2010

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