Conservatives’ Tax Strategy: Use Economic Fears to Cut Taxes for the Wealthy

Conservatives’ Tax Strategy: Use Economic Fears to Cut Taxes for the Wealthy

Posted on October 23, 2012

 

Congressional conservatives have revealed their negotiating strategy for dealing with the fiscal cliff slope: scare the public and congressional Democrats into a deal that reduces the deficit through spending cuts alone. These fears have been blown out of proportion. A fiscal Armageddon will not happen on Jan. 1, 2013.

Senate Majority Leader Mitch McConnell (R-KY) and House Speaker John Boehner (R-OH) tipped their strategy when they responded to a speech by Sen. Chuck Schumer (D-NY), who called on Democrats to fight to retain Clinton-era income tax levels for upper-income households. Schumer urged Democrats to allow the top two income tax brackets to revert back to 36 and 39.6 percent (from their current levels – 33 and 35 percent) and to increase the capital gains tax rate to some level below 40 percent (from today’s 15 percent). Continue reading “Conservatives’ Tax Strategy: Use Economic Fears to Cut Taxes for the Wealthy”

Senate passes resolution to keep government funded

By Ramsey Cox – 09/22/12 01:04 AM ET

The Senate approved the six-month spending resolution to keep the government funded early Saturday morning.

The vote was 62-30, with 10 Republicans voting with the Democratic majority and only one Democrat, Sen. Joe Manchin (W.V.), voting against. The vote took place after the upper chamber came to an agreement on other votes, including Sen. Rand Paul’s (R-Ky.) bill to end foreign aid to Egypt, Libya, Pakistan and Yemen unless they met certain conditions.

The continuing resoluion will now go to the White House where the president is expected to sign it into law. The fundng of the government must be authorized before the new fiscal year begins on October 1.

Paul had been filibustering the Senate for days, delaying action by requiring the maximum amount of time be spent on each vote until he got a vote on his own bill, which failed, 10-81. Continue reading “Senate passes resolution to keep government funded”