White House Considering New Tax Cut Plan, Washington Post Says
The Obama administration is considering a plan that would preserve tax breaks for both the wealthy and the middle class as it faces likely Democratic losses in the Nov. 2 midterm elections, the Washington Post reported.
Administration officials are discussing “decoupling” the Bush-era tax cuts to allow permanent extension for families making less than $250,000 a year and temporary extension of cuts for those making more, the newspaper said, citing people familiar with talks at the White House and among senior congressional Democrats. The Republicans would then be under pressure to defend extending the cuts for the wealthy as they expired in a year or two.
Debate over the tax cuts will resume when lawmakers return to Washington in mid-November after elections. Forecast gains for Republicans in the House and Senate would further erode Democratic support for halting the Bush-era taxes on the wealthy while continuing the extensions for the middle class, the newspaper said.
President Barack Obama and most Democrats say they want tax cuts extended for middle-income earners and to end for the wealthiest Americans. Republicans want tax cuts extended for everyone, arguing that an increase makes little sense as the economy recovers from the worst recession since the 1930s.
To contact the reporters on this story: Bob Willis in Washington Or bwillis@bloomberg.net
To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net
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