06-22-2010, 11:12 AM
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Hoyer: Permanent middle class tax cuts too costly
Hoyer: Permanent middle class tax cuts too costly
Quote:
House Majority Leader Steny Hoyer said Tuesday that tax increases will eventually be necessary to address the nation's mounting debt, raising a difficult election-year issue as Democrats fight to retain control of Congress.
In the shorter term, Hoyer raised the possibility that Congress will only temporarily extend middle-class tax cuts set to expire at the end of the year. He pointedly suggested that making them permanent would be too costly.
Tax cuts enacted under former President George W. Bush are scheduled to expire at the end of the year, affecting taxpayers at every income level. President Barack Obama proposes to permanently extend them for individuals making less than $200,000 a year and families making less than $250,000 — at a cost of about $2.5 trillion over the next decade.
"As the House and Senate debate what to do with the expiring Bush tax cuts in the coming weeks, we need to have a serious discussion about their implications for our fiscal outlook, including whether we can afford to permanently extend them before we have a real plan for long-term deficit reduction," said Hoyer, a Maryland Democrat.
The tax cuts will be a big political issue in many congressional elections this fall, providing potential fodder for both political parties. Democratic leaders have yet to lay out a schedule for dealing with the tax cuts, but many rank-and-file Democrats want to extend them before the elections, so they can campaign on passing tax cuts for the middle class.
Republicans argue that many of the high earners who would face tax increases under Obama's plan are small business owners struggling to stay afloat in a tough economy.
If the Democratic-controlled Congress doesn't extend the tax cuts before the elections, Republicans are ready to pounce, highlighting the looming tax increase that awaits nearly every U.S. taxpayer in January. Democrats would be left in the awkward position of promising to extend the tax cuts in a lame duck session following the elections, after nearly two years of inaction by the current Congress.
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The Dems are frothing at the mouth at the chance to get back into the wallet of the middle class...
SOMEBODY has to pay for their tripled deficit... 
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