Democrats, Obama divided over whether to lock in Bush’s tax cuts

[babylonsister]

Democrats, Obama divided over whether to lock in Bush’s tax cuts
By Alexander Bolton - 09/29/10 06:00 AM ET


Senate Democrats are peeling away from President Obama over permanent extension of the middle-class tax cuts, saying that locking in low rates for the vast majority of taxpayers is an unaffordable luxury.

Several senators, including Democratic Policy Committee Chairman Byron Dorgan (N.D.), are hesitant about giving up an estimated $1.5 trillion in revenue over the next decade, when the federal deficit is unsustainable and there are no obvious spending cuts to fix it.

They say it would be smarter to pass a short-term extension of the expiring Bush tax cuts for families earning less than $250,000, then re-evaluate tax policy in a year or two when the economy is stronger.

“I think a far better approach is to extend the middle-income tax cuts for two years and then make a judgment,” said Dorgan. “There’s a lot of uncertainty about the economy and the indebtedness.”

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http://thehill.com/homenews/senate/121515-dems-obama-differ-over-locking-in-bushs-tax-cuts