Pelosi Parts With Obama Over Bush Tax Cuts

Speaker Nancy Pelosi told reporters Thursday that she wants to see the Bush-era tax cuts for the wealthy repealed "as early as possible."

The call for repeal may place Pelosi at odds with President-elect Obama; during the campaign he called for repeal but his aides have since indicated that due to the deteriorating economy, he was leaning towards allowing them to expire.

Asked again after her press conference about the tax cuts, the Speaker said she is "urging repeal."

Pelosi noted that the Congressional Budget Office has determined that the tax cuts are the biggest contributor to the ballooning deficit. "Put me down as clearly as you possibly can as one who wants to have those tax cuts for the wealthiest Americans repealed," she said.

Pelosi said she has yet to settle on a specific threshold as to what constitutes wealthy, but said that the $250,000 income range was being considered.

First, though, the House will take up the Lilly Ledbetter Fair Pay Act tomorrow, aimed at assuring women equal pay for equal work.

Next week, it's children's health insurance. The House will vote on a package to expand the State Children's Health Insurance Program (SCHIP), which President Bush vetoed twice last session.

The stimulus package will then take priority. "We will have a bill before the President's recess," she said. "If we don't have a bill, there will be no President's recess."

House and Senate Republicans -- as well as Democratic committee chairs -- have been urging that the stimulus bill go through the normal committee process. Pelosi said that it would.

More broadly, she said that she told the Democratic caucus this morning that they need to rethink the way they approach legislation now that they are no longer in the minority or facing a Republican president. "We're thinking a political way about this," she said. "We have to think differently about this...We've been so used to an uphill fight but now we have arrived."

Claiming that polls show some 79 percent of the American people are behind Obama's stimulus plan, the Congress should "move quickly -- not hastily, but quickly," she said.

As her press conference ended, she was asked if she had any parting words for the president. She paused as the reporters laughed and finally said, "I have some. And I think I'll share them with the president privately."

Comments

[MDCambridge]

In the midst of the economic meltdown, Obama pledged to normalize tax cuts; i.e., repeal the disproportionate tax cuts for the wealthy. This is part of the reason that I voted for him. I see no reason why it should not be done sooner than later. He is pandering to the Republicans by not doing so. The honeymoon IS over.

[KarenDuncan]

I so agree with you. Promises must be kept especially for the majority of Americans.
Karen A Duncan

[RichardMcNeil]

I only make 15 dollars an hour and im not blind enough to call it disproportionate. The tax rate for the higher income people is alot more then I pay so how can you call it disproportionate? I am okay with the cuts im no Bush fan nor Obama for that matter but the wealthest already pay more then there share. The top 10 percent wage earners in the country pay 70 percent of all income tax collected. If anything they should remove things like tax deductations for children theres a ancient tax policy that needs to go. With the cost of school systems, infrastructure and programs why do people still get tax breaks for kids while the single adult will still pay more. Take a look at the current tax rate for Americans. If this was truly a land of equality wouldnt you think everyone should pay the same amount. I think you need to look at all the factors before using the words you are. Below it the tax rates. If you repeal it you would raise the higher earners to 39.6 percent. Dont get me wrong I am glad mine is low but dont think raising a rate that is already a good 10 to 15 percent higher then mine higher is a fair or good solution.


10%: from $0 to $8,025
15%: from $8,026 to $32,550
25%: from $32,551 to $78,850
28%: from $78,851 to $164,550
33%: from $164,551 to $357,700
35%: $357,701 and above

[xansam]

someone needs to remind Nancy that she was not elected PRESIDENT and that many of these failures happened on her watch because she could not get congress under control and stop Bush.

[ellwood]

Rejoice! The legislature may yet turn out to be more than simply an appendage of the executive branch. I know it will be hard for some to accept that the president is not another name for "king" after the last 8 years. Who knows, if we embrace democracy it might actually spread..

[BottomLine2008]

Oh, get a grip on reality.

Pelosi loves Obama.

[SethBLiNK]

Here's another non-issue.

Throughout the campaign, Obama said that he would not raise taxes on anybody making under $250,000, but that he would roll back the Bush Tax cuts so that those making over $250K would get an increase on their marginal rate of about 3%.

Since making those promises, the entire ecomony has been stood on its ear. Everything about the economy has changed radically and not for the better. Does anybody expect him not to revise his plans.

He is talking about a massive stimulus package and how it's going to work literally changes every day, but that's okay too, because we are all trying to figure this out. One thing is clear is that there will be substantial relief for those in the lower and middle brackets.

Which brings up two questions. Since we are lowering most people's taxes more than had been originally planned, does it still make sense to increase the taxes on the wealthier people. Keep in mind that most people who make more than $250K own stocks and real estate and most of them took a massive financial hit over the past few months. What does it serve to increase their taxes right now?

Also keep in mind that these tax cuts he was going to roll back expire in a year. Is it worth a battle in congress to roll back tax cuts right now that will die a natural death in 12 months anyway?

[TRichards]

This is astonishing. Pelosi rolled over for Bush more times than a tire on a cross-country trek. Now, she's going to stand up to Obama before he even moves to the White House. With friends like these . . .

I agree that the tax cuts for the super rich were a deliberate upward redistribution of wealth, but I'm with Obama on not trying to roll the cuts back before they expire -- for practical purposes. He will, as Pelosi is making clear, need Republican support. He'll never get it by taxing their masters.

[rucognizant]

Because Obama isn't threatening to sprinkle A_n_t_h_rax on the cotton candy at Disney world if she doesn't roll over!

[Dayahka]

Rich? How about $100,000? Everyone over that amount gets to pay more taxes. In fact, the level of what defines rich should be $1 over the average income for the entire country. Not only that, but a whole bundle can be saved for social security by denying social security payments to those whose retirement income is already provided by some other source--like a pension or their own earnings. How come most retirees have to struggle along on low amounts, while many people collect two or three pensions? And in addition to repealing Bush's tax cuts for the rich, Pelosi and company also need to hire an army stretching from here to the Sun to keep all the greedy fingers from grabbing from the trough--what with every podunk town and city, every governor, and probably every small business, maybe even the paper carrier lined up to get some pork. Even better, this whole entire stimulus package is one gigantic barrel of pork that should be canceled totally and completely. I mean, really, folks, Bloomberg in NYC, the Governicator of California, and everyone from sea to murky sea is lining up for some "stimulus."

[SnapShots]

Hmm. Someone seems to have woken up on the wrong side of their '201k' this morning.

[Lemastre]

For a politician hoping for reelection, applying a means test to social security pensions is probably off the table. The increasing number of voters over pensionable age mandates that, although if we raise the age enough, that might change.

[berrycooda]

Why doesn't the Congress and all the (over 400) retired Congressmen
give up part of their inflated salaries.....

Even the President got a raise a few years ago.
Does he really need to get almost a half million dollars a year...
plus perks.

We always hear how much debt America has and blame it on the
military and everything else, they need to take a good look at all the
goodies they get....insurance etc.
The retired Congressmen get more pension money than most
people working make in a year.

WE THE PEOPLE SHOULD PROTEST THEIR HUGE SALARIES FOR THE LIMITED TIME THEY SPEND WORKING AND MAKE THEM STOP GETTING 7% RAISES THAT THEY ALWAYS VOTE
FOR THEMSELVES.

[dolphindance25]

Dude have you ever even looked at the national budget?

[SeanOcali]

Lol, penny wise, pound foolish. Your intellect is astounding.

[AdV2k1]

we are getting another increase in Minimum Wage this summer.

Cutting on what you say will decrease the deficit by .00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000003%

how about cutting the war in iraq now thats big amount of money.

[thirtyninesteps]

No money there. It 's all off -budget supplementals -- pure borrowing. You knew that, right?

[rucognizant]

YOU ARE 8 YEARS TOO LATE!
I have resented EVERY DAY of bush's $1,600. per day salary for the last 8 years! Double what Clinton got!

[humble liberty]

We've got a blown tire.
Obama wants to replace it and improve the car.
Conservative democrats want to put a little air in it, as long as its not too expensive.
Republicans are debating whether to acknowledge there's a problem at all, but buying a new tire from a friend of theirs would help their decision.

[Antifascist-08]

Good one!

[thirtyninesteps]

She coulda swallowed but Obama firehosed her.

[chaos4700]

Oh, /now/ Pelosi grows a spine. Better late than never, I suppose. The tax cuts should be repealed, they do nothing for the economy. Putting money in the hands of rich people just means it ends up in offshore accounts.

[IhaveaDREAMwhitegirl]

Pelosi grew a nose hair. Spines , Hummph.... pshaaaww... Huh? ...Wa Da?!....Spine...

[SnapShots]

I heard she now has one of those big rubber ball/scrotum things hanging from her back bumper.

[mattamorr]

$250,000 IS wealthy...If you live in Homer, Nebraska or Fola, West Virginia, or thousands of other rural places in America, but it isn't that much for New York City, San Francisco, L.A. and many more urban areas.
Let's start with the BIG incomes and work our way down.

[avrang]

But thats the real America! not the cafe latte drinking big cities ... so pay up!!!

[humble liberty]

Right, California and New York should go easy on the quarter-million club... because their state budgets are SO balanced.

Face it, the policies were triple fudge ice cream pizza, each part delicious but so rich it's too much. Give me a good sandwich on wheat with milk.

Every scammer and crook got huge past profits and breaks, now they want more... where's the old cash? Sucks if you blew it, thank someone you're not in prison!

[happy camper]

i don't know who you hang out with in new york or los angeles, but the vast majority of people in those cities aren't earning anywhere NEAR $250,000/year. That's wealthy all over the country, my friend.

[SeanOcali]

Laugh all you want. If you're a renter in Los Angeles, with $250,000 a year, after taxes, one couldn't afford to purchase a new home in a safe neighborhood within city limits unless you've saved up a bundle. Maybe with no kids you could buy a condo, but even still that's tough. It's a really pathetic situation here. The city literally has no middle-class. Rich people, and not rich people. That's it. Granted, $250k is the upper limit to the not-rich, but it's sad that people making $75-150k have to live like poor college students.

But the reason for this isn't over-taxation. First and foremost is the disgusting housing bubble which is still massively overinflated in LA. Secondly, transportation sucks. You can't live in the suburbs here without spending 3 hours a day commuting. If we had mass transportation or at least a freeway system that worked, middle-class folks could live in affordable places like Valencia, Newbery Park, etc. At least in New York and even SF it's semi-practical to live in the outer burbs. But in LA, forget about it.

[SnapShots]

No, $250k is not wealthy. It's very comfortable, but it's not enough to be independently wealthy, especially if living in San Francisco or New York. I make a lot less than $250k, but when I add my federal and state income taxes, Social Security and disability, I'm paying out 40% of my monthly income. I would be paying more if it weren't for my mortgage deduction. I'm not bitching about it and I don't feel I need a tax cut. The reduction in my taxes won't make much of a difference in my life and I would rather see that money be used to help us get out of this economic mess.

[BillMelater]

Agree

[BigMike75]

I'd hate to see your expense report. I guess the vast majority of the masses walking Times Square, or Sunset Blvd, walk with a quarter million dollar confidence. Is that what that is? The extreme paronoia of trying to figure out how in the heck your gonna get by on $250 000.

I don't care what geographic location you take slice out of in this country, you'll find only 2%-5% of the people make $250 000 or more annually. I guess that number isn't enough for the Yuppies raiding happy hour with their Gold card.

[HHW]

Let's start with the part of the tax code that says hedge fund and private equity people pay 15% taxes because their salaries are "capital gains." First of all, most of those big numbers that they take down are not even their own capital : they are money that their companies borrow for them. Second, this is BY FAR the highest-paid profession in America - there are probably at least 100 individuals with salaries in excess of $500mm working in this industry paying a 15% marginal rate on taxes.

[RJII]

watch house and senate democrats implode, eventhough this should be the best of times for us.
Pass stimulus first, then repeal. Also, thank God that Jeb decided not to run.

[IhaveaDREAMwhitegirl]

ZZzzzzzzz

Huh?

Whazzz......ZZZzzzzzzzzzznnnnnzzzzzzzz

[IhaveaDREAMwhitegirl]

... and then he said...
....and then she said......

Wake me up....