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Progressive Lawmakers Want To Make GOP 'Put Up Or Shut Up' On Bush Tax Cuts

Gop

First Posted: 11/15/10 04:42 PM ET Updated: 05/25/11 07:10 PM ET

A coalition of progressive lawmakers, labor unions, and soon-to-be-former members of Congress are demanding that the Democratic Party hold an up or down vote on a tax cut package that extends rates for the middle class while letting those for the wealthy expire.

In an interview with the Huffington Post on Monday, Rep. Mary Jo Kilroy (D-Ohio), a freshmen member of Congress who was defeated in her re-election bid, said the time had come to "draw a line in the sand" with respect to the Bush tax cuts.

One vote was needed, said the Ohio Democrat, who would, ostensibly, get to cast that vote before she leaves office. The House should use its current majority to pass permanent relief to the middle class while letting the rates for income over $250,000-a-year go back to pre-Bush levels. That would pass the burden to the Senate, at which point Republicans will have to "put up or shut up."

"You were talking about fiscal responsibility," said Kilroy. "The fiscally responsible thing to do is to allow these tax cuts for the top earners to expire... I think we have to, as Democrats fight for policies that affect and improve the lives of the vast majority of people in this country. That is to give the working class people these tax breaks. But also, the Democratic Party has to establish itself as being fiscally responsible and to challenge the republicans. They campaigned on that. They need to work with the Democrats in Congress and with the White House to be fiscally responsible and let those tax breaks expire."

"I think the path forward legislatively is for the House to essentially draw a line in the sand," she added. "Then challenge the Senate to do the same."

Kilroy isn't alone among Democrats demanding that the party commit to letting the high-end Bush tax cuts expire. Even as the White House is signaling its willingness to cut a deal extending the top brackets for an additional few years, progressive lawmakers and the AFL-CIO have begun imploring the party to partake in a veritable game of chicken. Make Republicans vote against a package that included just tax cuts for the middle class as the deadline for all rates to be reverted closes in.

"It is critical that we pass President Obama' s middle-class tax proposal without providing an even greater lift for the wealthiest Americans who don't need it," Reps. Raul Grijalva (D-Ariz.) and Lynn Woolsey (D-Cali.), the two co-chairs of the House Progressive Caucus, wrote in a letter to House Speaker Nancy Pelosi (D-Cali.) on Monday.

"[I]t makes little sense for us to add $700 billion to our national debt just to extend tax cuts to the wealthiest Americans, who are simply going to save their money instead of putting it back into our economy," Sen. Sherrod Brown (D-Ohio) told the Columbus Post Dispatch over the weekend. "I will look at all proposals on the table, but my top priority is to provide tax relief to the middle class."

The dynamics, as more than a few observers have noted, have begun resembling those that dominated the health care reform debate, when the progressive community demanded votes on its priorities (the public option), regardless of the possibility of passage. As such, it seems like wishful thinking to see the party pursuing such a path with respect to tax cut policy. Why, after all, would the White House risk having nothing pass only to see all rates go up across the board on January 1?

That said, the fact that lawmakers like Kilroy are making such overtures is significant. Those members of Congress who aren't coming back to office have little to lose by casting a vote against a tax cut deal that temporarily extends rates for the wealthy. And with some Republicans insisting that they will oppose anything short of a permanent extension or all rates, the numbers might be tight for passing a legislative compromise.

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A coalition of progressive lawmakers, labor unions, and soon-to-be-former members of Congress are demanding that the Democratic Party hold an up or down vote on a tax cut package that extends rates fo...
A coalition of progressive lawmakers, labor unions, and soon-to-be-former members of Congress are demanding that the Democratic Party hold an up or down vote on a tax cut package that extends rates fo...
 
 
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COMMUNITY PUNDITS
lodger16x 04:27 AM on 11/16/2010
A  "progressive coalition'" will be ignored by Obama and senate Dems like it has been ignored for 2 years!
Obama, Reid, etc., stand up for Wall St! And K St! And the trillion dollar Pentagon budget!
 In this age of communication, why are so many "progressives" unable to see the truth that Obama is merely a stand-in for the 3rd term of W?
Tweeting about "Jersey Shore" does not necessarily  Read More...
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HUFFPOST SUPER USER
Neufield
FRESNO - CA
04:08 PM on 11/17/2010
let the super rich pay taxes. The middle class is now living paycheck to paycheck. If things don't change for the middle class wage growth, then I believe there will be a "french style" revolution on the horizon. The rich can run, but you can't hide. Your staff will give you up in exchange for freedom.
HUFFPOST SUPER USER
softvoice
keep your eye on the prize
01:14 PM on 11/17/2010
Speaker Pelosi should have brought this to a vote before they left in October. Some of the old dinosaurs in the Democratic party, resisted because they thought it would make it harder for Democrat's to win in November. We should watch closely and see if these same dinosaurs refuse an up or down vote again. Blaming everything on President Obama while not making those old Democrat's explain themselves is a big part of our problem.
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HUFFPOST SUPER USER
spinns17
TEAMSTER
01:12 PM on 11/17/2010
wall street thinks because they are the ones that puts the food on our table .we have to eat the chit they put on it.
01:07 PM on 11/17/2010
I think they should temporarily extend all the Bush tax cuts. Balancing the budget should not be a high priority right now.
11:30 AM on 11/17/2010
Obama needs to force it ! We need an up or down vote every day and to make the repubs show up ! On Thanksgiving day, and the day after n and the day after. All days of no's. Call it the scrooge repub party charachterized by no after no after no !
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HUFFPOST SUPER USER
8020vision
Let's leave the world better than we found it...
11:23 AM on 11/17/2010
Frank Rich has a good op-ed on Income Inequality last Sunday.

I put some charts together showing last 100 years of tax rate and income data for the top 1% of earners. See it here:
http://8020vision.com/2010/11/16/when-does-the-wealth-of-a-nation-hurt-its-wellbeing/

Pre-tax income is at historic highs not seen since just before the depression.

I also include a chart on the Gini index, which analysts use to predict social unrest. We are leaving the Gini zone of developed nations and moving into the ranks of Rwanda, Mexico, etc...

Jay Kimball
8020 Vision
10:21 PM on 11/16/2010
The time has come and it is NOW!!! Ram it down the republicans throats like Bush rammed 2 wars and tax cuts for the wealthy down the throats of middle class America.... The house has nothing to lose and America has everything to gain by making the wealthy pay their fair share.The middle class has been doing that all along, the wealthy should be grateful that they have enough$$$to qualify. Note to Boehner...TRICKLE DOWN DOES NOT WORK...main street knows this because nothing has been trickling down for the past decade that these tax cuts for the wealthy have been in place..Make the wealthy pay for their keep just like the rest of us..I am sick of Boehners threats..Might as well have Rehab-Rush Limbaugh as speaker because of Boehners rhetoric..He has no intention of working with Pres Obama on anything and has said that many times......WAGE PEACE !
HUFFPOST PUNDIT
ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
06:07 PM on 11/16/2010
Congress makes laws, and this is their responsibility, the Dems still control both houses.
For once, an article doesn't make something all Obama's fault. Thanks for some honest reporting!
04:44 PM on 11/16/2010
Too little too late, but better late than never.

Where was this resolve BEFORE Election Day? Making the Republicans vote "no"--making them filibuster a vote--on tax relief for the working and middle classes would have been a stellar way to demonstrate to voters who was working for them and who was not. But there apparently was no stomach for this then. Too bad.
HUFFPOST PUNDIT
ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
06:09 PM on 11/16/2010
The voters generally prefer extending all Bush tax cuts, or none of them (like me). The Obama compromise doesn't sell well, people are just plain dumb.
03:52 PM on 11/16/2010
Companies do not pay taxes. All taxes are passed on to the consumer. A tax break for the rich is a tax break for the poor.
04:46 PM on 11/16/2010
Not in a competitive, capitalist economy. While taxes are a cost of doing business, not all of them get passed through. An no tax breaks for the rich benefit the poor. That money goes into the pocket of the rich, who--history demonstrates--rarely spend it.
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HUFFPOST SUPER USER
Sean Laney
10:49 PM on 11/16/2010
You really have no clue. Do you honestly think a tax on companies doing business is the same thing as a tax on the rich?
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HUFFPOST SUPER USER
Mark Fey
02:33 PM on 11/16/2010
*A L L* of the 2001 and 2003 tax rates should expire as planned. These bad tax policies were bad when they were passed (Remember it took Dick Cheney's vote to pass the 2003 bill 51-50) and they are bad policies now.

Passing good and proper tax rates after these expire can be a good place to debate the future of the Federal budgetary process. Making foolhardy bargains with bad policies is reckless.
HUFFPOST COMMUNITY MODERATOR
koyak23
02:01 PM on 11/16/2010
That strategy will not work. The pubs will stand firm and let the tax cuts expire. Then, the very first bill passed in the new Congress will be permanent tax cuts for all. Obama will not veto, and pubs can campaign on having restored the tax cuts that Dems took away.

The better "line in the sand" is to make middle class tax cuts permanent and extend the robber baron tax cuts until June 2012. Then the Dems can claim that no one's taxes are being raised, and in 2012 the pubs have to decide whether they will campaign on extending or making tax cuts for the wealthy permanent.
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HUFFPOST SUPER USER
Mrs Norman
02:37 PM on 11/16/2010
Wrong! The Republicans will NEVER allow the middle class tax cuts and the upper class tax cuts to be separated. NEVER..
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HUFFPOST PUNDIT
Quasi Libertarian
Sometimes you get the bear, sometimes it gets you
02:53 PM on 11/16/2010
That is probably what will happen, but it will play in to the GOp's 2012 strategy.  If the 2003 tax rate remains unchanged and we see a spike in hiring then the GOP will say that keeping the 2003 tax rates were the reason and force them to be made permanent.
01:41 PM on 11/16/2010
Gives a new meaning to. "Kilroy was here."
02:17 PM on 11/16/2010
They are trying their damnest to divert attention from this---the Earmark dance---the fed cut dance-- the mandate dance---All lies !

http://www.politicsdaily.com/2010/11/15/poll-gops-house-takeover-was-rejection-of-the-democrats-not-a/
01:22 PM on 11/16/2010
No. You have to stop spending, Ms. Kilroy. Thats the responsible thing to do.
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HUFFPOST COMMUNITY MODERATOR
samidean
01:28 PM on 11/16/2010
So I guess, as opposed to your Rethug heroes, you are against extending the tax cuts for the wealthy too?
cuchulain
Occupy the Tao
01:33 PM on 11/16/2010
No. That's the insane thing to do during a weak recovery.

Stopping spending means taking money OUT of the economy. It means job loss and more people on unemployment, further straining government resources, leading to more state and local layoffs, etc. etc.

It's stupid and destructive.

The time to cut spending is when the private sector is roaring. When it can ride without training wheels, that's the time to cut government spending. Not while it's still wobbling and hoarding capital. Not while demand is too low.
04:50 PM on 11/16/2010
If the Bush tax cuts were essential to a healthy economy, then why is the economy so sick now---after ten years of the damn tax cuts!

Your logic is in great need of repair.
cuchulain
Occupy the Tao
01:19 PM on 11/16/2010
The really sad thing about this tax cut "controversy" is it's really about peanuts. Tax rates for the rich need to be increased radically, not just by 3%. And in real terms, it's not even 3%, because under the Democrats' plan, the first 250K will receive the tax cut anyway.

Low tax rates for the rich kill jobs and demand. They act as in incentive for the rich to hoard money or invest in paper, instead of production. When the top rate was 91%, the average CEO paid himself just 26 times his rank and file workforce.

With the top rate at 35%, the average CEO pays himself more than 400 times the rank and file.

When personal taxes are high, ownership has the incentive to reinvest in the business, in hiring workers, in equipment upgrades. In short, production. If you combine low personal rates with low corporate rates, there is little in the way of incentive to avoid paying higher tax through reinvestment in production.

Beyond that, it creates record levels of wage and income inequality, which kills demand.

If you're a business owner, which would you rather have?

A. 100 consumers with 10 million dollars of disposable income

or

B. 10,000 consumers with 100,000 dollars in disposable income . . .

Nine of out ten businesses would prefer B.
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HUFFPOST SUPER USER
cassie reinara
01:38 PM on 11/16/2010
Nicely put. F&F.
HUFFPOST COMMUNITY MODERATOR
koyak23
02:04 PM on 11/16/2010
a big FANNED !