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Jamie Dupree's Washington Insider

Posted: 7:34 p.m. Sunday, Dec. 5, 2010

Tax Fight Update 

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By Jamie Dupree

The Senate gridlocked over the future of current federal income tax rates this weekend, while negotiators continued to work on a deal that would extend all of the Bush tax rates - and more.

Democrats held two votes on Saturday, getting 53 votes on plans that would have allowed tax rates to go up for those earning more than $200,000/year for an individual and $250,000 for a family, and 53 votes on a second plan that raised the tax hike threshhold to $1 million/year.

Republicans denounced the votes as nothing more than political theater.

"Meaningless show-votes and anti-business rhetoric won't do anything to make the situation better," said Senate GOP Leader Mitch McConnell.

Democrats meanwhile weren't backing down on their rhetoric either, as Senate Majority Leader Harry Reid labeled the GOP opposition to the Democratic plans, the "height of irresponsibility."

Ten Republicans didn't even bother to show up for both votes, evidently deciding that it was better to spend the weekend at home.

Those missing the votes were Sen. Jim Bunning (R-KY), Sen. Richard Burr (R-NC), Sen. Saxby Chambliss (R-GA), Sen. John Cornyn (R-TX), Sen. Judd Gregg (R-NH), Sen. Kay Bailey Hutchison (R-TX), Sen. Jim Inhofe (R-OK), Sen. Johnny Isakson (R-GA), Sen. Jeff Sessions (R-AL) and Sen. David Vitter (R-LA).

Their absence didn't matter, because none of them were going to vote with the Democrats.  But their choice to skip town deserves at least a footnote.

In a post-vote news conference in the Capitol, Democrats led by Sen. Charles Schumer (D-NY) blistered Republicans, trying to hammer them repeatedly on the idea that the GOP is simply interested in helping the rich.

Democrats talked optimistically of getting more than a half dozen GOP Senators to switch sides and vote with them, but as I've said repeatedly in recent weeks, the momentum on this issue is running with Republicans, and not against them.

Once those votes were out of the way, talk in the corridors of the Capitol began to center more and more on the talks going on between Republicans and the White House, which would link an extension of all current tax rates to approval of a host of other items.

Down at the White House, President Obama complained about Republicans, saying "it makes no sense to hold tax cuts for the middle class hostage" to tax cuts for the rich.

But Obama acknowledged in a Saturday statement to reporters that the weekend votes simply "cannot be the end of the discussion" on the tax rate matter.

Many Democrats though are not pleased with the White House, since word is on the street that the Obama Administration is ready to extend all current rates in exchange for a series of other items, mainly a one year extension of long term jobless benefits.

All kinds of other things could be added in as well, such as extension of a series expired individual and business tax breaks known as 'tax extenders', a patch for the Alternative Minimum Tax, changes in federal estate taxes, and extension of several extra tax breaks enacted in the stimulus.

Oh yeah, and don't forget the Medicare Doc Fix, which Congress has been doing for a month here and there to prevent a 21% cut in the payment rates for doctors from Uncle Sam's Medicare program.

Democrats want a year-long Doc Fix, which would cost $19 billion.

Just one more thing to put on the ledger.  And there are more out there.

The House is not in session today.  The Senate has no votes.  That means we have 14 work days until Christmas Eve.  

There is a lot of work left to do.  And I mean, a lot of work.

And time is running out fast.

 
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