WASHINGTON (AP) — Democrats blocked a Senate vote Wednesday on President Barack Obama's plan to extend expiring tax cuts for a year for everyone but the highest-earning Americans as the two parties maneuvered to try embarrassing each other on one of the election year's foremost issues.
The move came just two days after Obama urged Congress to vote on his proposal. Democrats plan to take up the president's proposal before Congress' August recess.
Without action by lawmakers, wide-ranging tax cuts enacted a decade ago under President George W. Bush will expire on New Year's Day. That's an outcome that economists say would be a blow to the already weak economy.
Senate Minority Leader Mitch McConnell, R-Ky., proposed votes on two amendments to a small business tax cut bill the chamber is debating. One was on Obama's plan, the other on a Republican alternative that would include top earners in the extended tax reductions.
Senate Majority Leader Harry Reid, D-Nev., blocked the votes on both for now, saying the Senate would return to them after it finishes the small business tax measure. Aides said Democrats want to focus now on the small business measure, which they view as a winning issue for them, and turn later this month to Obama's plan to extend the broader tax cuts, which they see as a draw for voters.
"We'll get to the tax issues," Reid said. "That way we'll be able to talk in more detail about Gov. Romney's taxes," a reference to Democratic demands that wealthy GOP presidential challenger Mitt Romney release more of his income tax returns.
The White House voiced support for Reid's blocking action. Presidential spokesman Jay Carney called the GOP move "a gimmick."
The proposal floated by Republicans "was not the president's proposal, did not include the other middle-class tax cuts that were part of the president's proposal," Carney said. Carney said that Reid promised the Senate would have a chance to vote on Obama's most recent proposal and he would take him at his word.
Trying to take the offensive, Obama's re-election campaign released a television ad it will air in nine states where the election could be close, contrasting the middle-income tax breaks Obama has proposed with the tax cuts Romney's plan would provide for wealthy individuals and corporations. "Two plans, your choice," the announcer says.
Obama would exclude families earning over $250,000 a year from the renewed tax cuts, saying they should contribute to deficit reduction.
Republicans say by excluding those people, the plan would in effect raise taxes on many business people and stifle job creation. Republicans said Reid blocked the votes to protect vulnerable Democrats seeking re-election this fall from having to vote on Obama's plan.
Sen. Orrin Hatch, R-Utah, said Obama's proposal "is not just an economic disaster. It's a political loser and they know it."
Out of 119 million U.S. households, just 2.5 million — or 2 percent — reported making at least $250,000 in 2010, according to Census Bureau figures.
An estimated 940,000 taxpayers reporting business earnings will earn enough money to see their tax rates rise in 2013 unless lawmakers act, according to Congress' nonpartisan Joint Committee on Taxation. That is just 3.5 percent of taxpayers reporting business earnings — a figure Democrats use to show how few businesses would pay higher tax rates under Obama's plan.
The committee also estimated that those 940,000 taxpayers will account for 53 percent of the $1.3 trillion in business earnings reported in 2013 — a number Republicans cite to argue that the higher rates will hurt the economy and job creation.
Also On Black America Web:
This Week’s Celebrity Instagrams (10/15-10/21)
31 photos Launch gallery
1. Just a NY girl with BIG dreams....
1 of 31
2. HAPPY CHILDREN=QUALITY PARENTING. We don't always see eye to eye on everything and that's normal. We're human beings. But we come together and do it right for what's important, the kids. We are not enemies, we are parents. And we are parents 1st. S/O to @monyettashaw for making Mason's bday memorable. S/O to @itscrystalsmith at home taking care of our other lil' Prince. ❤️❤️❤️ THIS IS WHAT CO-PARENTING LOOKS LIKE. #Blessed #Happy #AboveTheDrama #BiggerThanUs
2 of 31
3. So happy to finally be able to share with you all that I’m the new Global Brand Ambassador for @Revlon! Follow my day on RevlonSnaps. Yay! Choose Love, Everybody! #RevlonXCiara #chooselove #ad
3 of 31
4. Glam on point!!!@makeupbymotoko & @shaylinjoneshair #easybreezy @lifetimetv #beachesmovie #january2017 😘
4 of 31
5. ✨True love ✨📸: @jessiemarrerophotography
5 of 31
6 of 31
7. Today was not easy..but by the grace of God we all got through it. Words cannot express our gratitude for all of your Prayers, Positive thoughts and Support for us throughout the years. Tommy will be missed but most certainly never forgotten...And PLEASE don't ask "Where's Martin?.." he was there too...just not in this picture. Lol! God bless you all.. #LoveConquersAll #MartinShow
7 of 31
8 of 31
9. West coast get ready for #RockyHorror. I will be live tweeting again. #letsdothetimewarpagain
9 of 31
10. #THEKEYS pre order yours now ... Available everywhere #NOV22 #WeTheBest 🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑
10 of 31
11. We about to ROCK at #KCABlackBall!! All for our life-changing effort to end 🌎 AIDS.
11 of 31
12. Today's #SNAPJACK is brought to you by @yazzthegreatest 😂😂😂💋💋💋
12 of 31
13. Damn girl you kinda old to be headed to the Go Go. You coming in at the age they leaving. LMAO
13 of 31
14. Daddy daycare B-Boxin with @acewellstucker @shopraisingace
14 of 31
15. #FBF Naviyd & URV "LIL MONSTERS"
15 of 31
16. HAPPY BIRTHDAY TO ONE OF THE BIGGEST LEGENDS IN OUR HIPHOP HISTORY! @snoopdogg CONTINUED BLESSING AND LOVE FAMILY!!!!! REAL OG!
16 of 31
17. Thank you for a beautiful night VSU! Let's do it again! #HOMECOMING
17 of 31
18. Had a great time this morning with my familia Erica, Griff & Truth!!
18 of 31
19. Check out my interview on @essence facebook live. #inmyownwords #nycpromo #day2
19 of 31
20. #She💋 #tbt #TheCoveAtTheAtlantis #DawgPawsAndAll
20 of 31
21. Bae #retailtherapy
21 of 31
22. Why me and @coryhardrict got the same pose... and notee... new mouth #naked
22 of 31
23. When my husband is my personal 'hype-man'! it kills me every time! 💜😂 #WHATNOW #lostfiles📷
23 of 31
24. Diggy Simmons
24 of 31
25. Hand full of @jacquieaiche 💙💎💍 @esnail_la 💅🏾
25 of 31
26. SuperSoulers! You can watch my interview with Carl Lentz live from my Facebook page, tomorrow at 11a ET| 8a PT. #SuperSoulSunday
26 of 31
27. 💋 .. When the friendship is easy like Sunday morning. ☀️
27 of 31
28. Sunday mornings are the best........... hugs and cuddles with my angel
28 of 31
29. #huggar16 #hellohuggars
29 of 31
30. My gym is everywhere!.. #RnBMoney #TheGeneral 📸: @twelvepastseven
30 of 31
31. Nothing I would rather be doing... Rocko setting up our movie, Romelō working on a puzzle & Laiyah singing and sharing all she's learning at school... I'm so grateful for the joy they've brought into my life ... Praying for peace , joy & love in the home of EVERY family ♥️ #HeadScarfPJSunday LOL 😂
31 of 31