Senate Democrats Drafts One Year Tax Plan
Senate Democrats drafted a legislation regarding the proposed one year tax plan. It is currently circulated among members of the chamber. It provides cuts for individuals earning up to $200,000 as well as families earning up to $250,000.
The legislation from the Senate Democrats counters that of the House Republicans to extend all of the Bush-era tax cuts for another year. They also promise to do a comprehensive tax reform in 2013.
The Senate leaders are circulating the proposed legislation to learn whether they can gather enough votes to pass the legislation. Republicans wanted the leaders of the Democrat-controlled Senate to vote on tax cuts that would not extend tax cuts to all Americans.
The vote came two day after President Obama asked Congress to act on his middle-class tax cut proposal and was blocked by Senate Majority Leader Harry Reid who promised that they’ll get votes on tax cuts within this work period.
Senator Reid wants a vote to be done by the end of the month. The cost of the proposed legislation is around $272 billion for a year. He also tried to force Republicans to vote Wednesday But Senate Minority Leader Mitch McConnell declined because the legislation hasn’t been drafted yet.
Retiring Virginia Democratic Senator Jim Webb and Independent Senator Joe Lieberman said they will vote against the proposal. According to Lieberman, who caucuses with Democrats, the best thing Congress can do to improve the economy is to enact a comprehensive bipartisan plan that will balance the budget.
Republicans are now expecting several Democrats who face tough re-election bids to vote against the bill and will instead vote for the plan to extend cuts to all Americans, which is the more re-election friendly option. Some of the Senators like to vote against the bill are Claire McCaskill of Montana, Joe Manchin of West Virginia, Ben Nelson of Nebraska, and Bill Nelson of Florida.