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Monday, September 13, 2010

postheadericon McConnell to introduce measure to maintain tax rates

Senate Minority Leader Mitch McConnell (R-Ky.) said Monday that he plans to introduce legislation to prevent the Bush tax cuts from expiring.

On the same day the Senate returned to session from a five week recess, McConnell helped set the stage for a showdown over the contentious tax provisions.

{mosads}“The good news is that a growing chorus of Democrats, including at least five here in the Senate, are coming round on this issue," he said on the Senate floor. "They oppose the tax hikes the administration is proposing. As Sen. Lieberman put it earlier today, '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.'"

Congress could take up measures to deal with the expiring tax breaks soon and lawmakers from both parties have bickered over whether or not to extend most or all of the cuts, including th! ose for individuals earning over $200,000 per year and families making over $250,000 per year.

With the struggling economy dominating the midterm election narrative, the debate over the tax cuts in Congress has taken center-stage in recent days. The White House has come out strong against House Minority Leader John Boehner (R-Ohio) and other top Republicans who want to extend all the cuts.

They pounced Sunday when Boehner said that he would be open to letting the cuts for top earners expire if that was the only option on the table, even though he later said that he still favors extending all the cuts.

Some centrist Democrats and nearly all Republicans want to keep the cuts for everyone, including high-income earners.! Democratic leaders, including Reid, and the White House favor keeping the provisions for everyone outside the top income brackets. 

Reid controls the Senate calendar and it is not clear if McConnell's bill will come up for a vote. A Republican aide said that "by extending current tax law, it would prevent massive tax increases on everyone, including the small businesses who Democrats have targeted for hikes." The aide expects the meaure to be "officially introduced as early as today."

As McConnell pointed out, several Senate Democrats have said they do not want to get rid of the cuts for the wealthy, casting doubt on whether or not the Senate could pass legislation that does not include an extension for the highest earners.

The Kentucky Republican said ! that the public is "tired" of Democratic policies and don't want to see their taxes raised.

“They’re tired of Democrat leaders in Washington pursuing the same government-driven programs that have done nothing but add to the debt and the burden of government. We can’t allow this administration to demand that small business owners in this country pay for its own fiscal recklessness. And that’s why I’m introducing legislation today that ensures that no one in this country will pay higher income taxes next year than they are right now.

--This post was updated at 3:38 p.m.

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