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December 14, 2010 in Nation/World
House Democrats consider changes in tax bill
WASHINGTON — House Democrats considered changes in legislation to avoid a Jan. 1 jump in income taxes today, despite a warning from Republicans that the bill’s passage could be endangered as a result.
“This agreement is not subject to being reopened,” said Senate Republican leader Mitch McConnell of Kentucky. “In other words, we have an understanding.”
President Barack Obama announced the agreement a week ago, saying it had been worked out with leading lawmakers in both parties and was essential to help strengthen an economy still struggling to recover from the worst recession in decades.
There is little disagreement among lawmakers about many elements of the bill, but a provision to benefit the wealthy by easing the estate tax draws strong opposition from House liberals.
The Democratic rank-and-file voted last week not to permit the bill to come to a vote unless it had been changed first. They appear to have dropped their ultimatum, and arranged a closed-door evening meeting to review other ways to make revisions.
The measure commands strong bipartisan support in the Senate, which voted 83-15 on Monday to advance it to a final vote that is expected either late today or possibly Wednesday.
At its core, the bill would extend tax cuts at all income levels that were enacted during the presidency of George W. Bush. It also would renew a program of jobless benefits for the long-term unemployed that is due to lapse, and enact a one-year cut in Social Security taxes. The bill’s cost, $858 billion, would be added to the deficit.
At the insistence of Republicans, the plan includes a more generous estate tax provision: The first $10 million of a couple’s estate could pass to heirs without taxation. The balance would be subject to a 35 percent tax rate.
The lower estate tax infuriated some Democrats who were already unhappy with Obama for agreeing to extend tax cuts for individuals making more than $200,000 and couples making more than $250,000.
The estate tax was repealed for 2010. But under current law, it is scheduled to return next year with a top rate of 55 percent on the portion estates above $1 million — $2 million for couples.
House Democratic leaders want to bring back the 2009 estate tax levels. That year, individuals could pass $3.5 million to their heirs, tax-free. Couples could pass $7 million, with a little tax planning, and the balance was taxed at a top rate of 45 percent.
Despite the maneuvering, House Majority Leader Steny Hoyer told reporters, “I think, frankly, that ultimately we will pass legislation.”
“The vote in the Senate indicates an urgency that is felt by a broad spectrum that the middle-income taxes not be increased come Jan. 1. In order to affect that, you’ve got to pass the bill,” he said.
© Copyright 2010 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Obama honors Medal of Freedom recipients as heroes 
hawken on December 14 at 3:56 p.m.
I hope McConnell sticks with this position.
“This agreement is not subject to being reopened,” said Senate Republican leader Mitch McConnell of Kentucky. “In other words, we have an understanding.”
Meanwhile, Obama has Michelle waiting for lunch. He’s 30 minutes late and needs to turn the country over to former president Clinton. (ref the Obama Clinton press conference where Clinton encouraged the Pelosi commune to accept the agreement with the Republicans and the Senate).
Obama can’t even lead his own party, let alone the nation.
And, I hope Pelosi torpedoes this agreement. The Republicans gave up too much.
We can start fixing this mess in genuine, in January, when more conservative Republicans report for duty.
monarch on December 14 at 5:30 p.m.
25 percent of the tax cuts go to the top 1 percent. The Republicans really are the party of the rich.
Alfredo on December 14 at 9:05 p.m.
Darn right Hawken! Those kids worked hard to get their parents money and gosh darnit they should be able to keep every cent of it!
You’re such a…hmm, I really can’t say what I want to say here.
misjustice on December 15 at 7:37 a.m.
Well, we wouldn’t want to punish members of the lucky sperm club, like Paris Hilton, would we?
I mean, people like her just do so much for our society, punishing her, by unfairly taxing her inheritence would mean that she’d have less money to create jobs; like hair stylists, personal shoppers, maids, pool boys, gardeners, cooks, and lawyers.
misjustice on December 16 at 10:05 a.m.
God Bless the Child
Billie Holiday
Them that’s got shall get
Them that’s not shall lose
So the Bible said and it still is news
Mama may have, Papa may have
But God bless the child that’s got his own
That’s got his own
Yes, the strong gets more
While the weak ones fade
Empty pockets don’t ever make the grade
Mama may have, Papa may have
But God bless the child that’s got his own
That’s got his own
Money, you’ve got lots of friends
Crowding round the door
When you’re gone, spending ends
They don’t come no more
Rich relations give
Crust of bread and such
You can help yourself
But don’t take too much
Mama may have, Papa may have
But God bless the child that’s got his own
That’s got his own
Mama may have, Papa may have
But God bless the child that’s got his own
That’s got his own
He just worry ‘bout nothin’
Cause he’s got his own