Friday, September 24, 2010
Democrats abandoned plans to vote before Election Day on extending Bush-era tax cuts for the middle class while eliminating them for better-off Americans, spooked by protests from vulnerable incumbents and bleak prospects for passage.
With time running out to plan for 2011, the delay raises uncertainty for small businesses and individual taxpayers over their future liabilities. It also sets up a titanic battle over taxes after the election.
If returning lawmakers don't pass legislation by Dec. 31, the expiration date of the cuts, tax rates would rise not only on income, but also on estates, capital gains and dividends. Important corporate tax credits and relief from the Alternative Minimum Tax also are up for renewal.
Democratic leaders and President Barack Obama made the proposal to extend the middle-class tax breaks a centerpiece of their midterm campaign strategy. They now face the possibility their members are vulnerable to Republican charges that they have failed to prevent taxes from rising for almost everyone.
- ABC News, Senate Democrats Punt Tax Cuts To Lame-Duck
- Associated Press, Democrats Delay Vote on Extending Bush Tax Cuts
- The Atlantic, Why Senate Democrats Are Afraid of the Bush Tax Cuts
- Christian Science Monitor, Bush Tax Cuts: Democrats Punt Until After Midterm Elections
- The Huffington Post, Dems' Tax Cut Punt Doesn't Make Any Sense
- L.A. Times, Senate Democrats Delay Extension of Tax Cuts
- New York Times, Senate Democrats Delay a Vote on Bush Tax Cuts
- Newsweek, How Avoiding a Vote on Tax Cuts Will Hurt Democrats
- NPR, Democrats Snared By Republican Tax Trap
- Politico, Dems Punt Tax Vote to Lame Duck
- Wall Street Journal, The Democratic Tax Retreat
- Washington Post, Politically Savvy Senators Wanted Middle Class Tax Cut Vote