Today in Washington, D.C. - Sept 15, 2010 - More Democrats Oppose Obama Plan To Raise Taxes In January

The Senate resumed post-cloture consideration of the Reid-Baucus substitute amendment to the Democrats’ small business lending bill, H.R. 5297. Votes are possible today on cloture on the underlying bill and various motions on the bill.

Yesterday, 52 Senate Democrats voted to keep small businesses burdened with the onerous 1099 paperwork mandate created by the health care bill by voting down the Johanns amendment. Following that, 56 Democrats voted for an inadequate, watered-down version that wouldn’t repeal the 1099 provision and would also raise taxes on energy companies. However, both amendments needed 60 votes to be adopted, so both failed. Also, the Senate voted 61-37 to invoke cloture on the Reid-Baucus substitute amendment to the bill.

Roll Call writes today, “Rather than wasting time comparing notes on how they spent their summer vacations, Senate Democrats celebrated their first full day back at work Tuesday by fighting over whether and how to extend expiring Bush-era tax cuts. Democratic Senators and aides said their regular Tuesday lunch turned into a free-for-all over how to tackle an issue that has rarely cut in Democrats’ favor and has some Senators nervous given that the majority expects to sustain substantial losses in both chambers come Nov. 2.”

In fact, there seems to be growing bipartisan agreement that Congress should not raise taxes on any Americans in the middle of a severe recession, despite the desires of the White House. The Wall Street Journal reported yesterday, “Illustrating the tough sledding ahead in the Senate, Sen. Ben Nelson (D., Neb.), who wants to extend the tax cuts for everyone, didn’t back off his position Tuesday. ‘I favor extending all of the Bush tax cuts, every one of them,’ he said. As for letting the cuts expire just for those making more than $1 million a year, a possibility discussed recently by the Senate Democratic leaders, Mr. Nelson said, ‘My sense is that raising taxes at a time when you’re trying to stimulate economic recovery is the wrong way to go.’” On Monday, Sen. Joe Lieberman (ID-CT) said, “I don’t think it makes sense to raise any federal taxes during the uncertain economy we are struggling through. . . . [T]hat means I will do everything I can to make sure Congress extends the so-called Bush tax cuts for another year . . . . In our current economic situation, we cannot risk the economic headwinds that would be caused by tax increases. We need to keep as much money as possible in people’s pockets and business’s bank accounts.” And Fox News reports, “The growing chorus of Democrats who oppose extending only the middle class Bush tax cuts just got a bit louder. West Virginia Gov. Joe Manchin, who is seeking the Senate seat long held by the late Robert C. Byrd, just told Fox emphatically, ‘I wouldn’t raise any taxes.’”

An increasing number of House Democrats apparently agrees. According to Politico’s Huddle today, “In a one-man letter, Georgia Rep. Jim Marshall told Speaker Nancy Pelosi he wants to freeze tax rates for folks at all income levels, rather than letting them go up for top earners. ‘Simply put, we should not be raising taxes in the middle of a recession,’ he wrote. The number of House Democrats who have taken that position publicly is growing, with a letter led by Reps. Jim Matheson (Utah), Melissa Bean (Ill.), Gary Peters (Mich.) and Glenn Nye (Va.) due for delivery today. . . . A source e-mails: ‘Between the moderates’ letter and the Members who are even more aggressive in extending the upper bracket, we have over 30 bodies on the board and the speaker has to take pause if that’s the case.’”

As Roll Call notes, “[Senate Republican Leader Mitch] McConnell on Tuesday reiterated that Republicans are united against raising taxes on the rich because they believe it would affect as many as 750,000 small businesses. ‘What we ought not to be doing is raising taxes on anybody in the middle of a recession. We know that there’s bipartisan agreement with that,’ McConnell told reporters.”

On Monday, Sen. McConnell actually introduced a bill, the Tax Hike Prevention Act, to make current tax rates permanent and prevent across-the-board tax hikes come January. Explaining his bill in a speech on the Senate floor Monday, Sen. McConnell said, “Americans have had it. They’re tired of Democrat leaders in Washington pursuing the same government-driven programs that have done nothing but add to the debt and the burden of government. We can’t allow this administration to demand that small business owners in this country pay for its own fiscal recklessness. And that’s why I’m introducing legislation today that ensures that no one in this country will pay higher income taxes next year than they are right now. We can’t let the people who’ve been hit hardest by this recession and who we need to create the jobs that will get us out of it foot the bill for the Democrats’ two-year adventure in expanded government.”

Hopefully, more Democrats will join the growing bipartisan chorus speaking out against raising taxes on any Americans next year. It’s time to stop adding to the uncertainty of job creators and at the same time give assurances to all Americans that they won’t face a massive tax increase on New Year’s Day.

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