McConnell Calls Dem Bluff on Bush Tax Rates

Today, Senate Minority Leader Mitch McConnell (R-KY) called Democrats’ bluff on the 2013 tax cliff. Speaking on the Senate floor, McConnell announced that Republicans will allow a 50-vote threshold on Democratic proposals for renewing the Bush tax rates. Democrats have repeatedly stated that they want to keep Bush’s tax rates in place. Sen. Claire McCaskill (D-MO) says, “I support extending the current exemption so that we don’t hurt family farmers.” Sen. Bob Casey (D-PA) says, “If we set the general estate tax exemption level at $3.5 million for an individual, $7 million for a couple, maybe even carve out a $5 million exemption for family farms and businesses, you could get savings just on that alone of $300 billion over 10 years.” And Sen. Bill Nelson (D-FL) says “With regard to the inheritance tax, I have always been in favor of eliminating this tax.”

 

Yet Democrats keep complaining that they can’t do anything about the Bush tax rates – and that Republicans are holding up the show – because they need 60 votes to stop a filibuster in the Senate.

 

Now Republicans have removed that excuse. Democrats can pass their tax proposals without fear – they do have a majority. This puts President Obama in a difficult position – he will either have to enshrine the Bush tax rates, or he will have to allow taxes to increase on his watch. Democrats have an easy choice now: help the economy, or please their leftist base. No doubt they’ll choose their leftist base – after all, they always have in the past.



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“Every Asian market outside Sri Lanka retreated after Federal Reserve Chairman Ben S. Bernanke yesterday said a premature withdrawal of quantitative easing would put the U.S. economic recovery at risk,” Jonathan Burgos reports. What does this say about the US and, in particular, the policies of the Federal Open Market Committee, which are pretty much identical?

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