Obama's Jobs Bill: Harry Reid Pitches Millionaire's Tax As Another Way To Cover Costs

WASHINGTON -- In an effort to secure more votes for the president's jobs plan, Senate Democrats are considering different ways of paying for the bill, including placing a greater tax burden on people whose incomes are more than $1 million a year.

Aides on Capitol Hill tell The Huffington Post that the new proposal could be formally unveiled as early as Wednesday. One top aide cautioned that the Democratic leadership was considering several ideas to pay for the American Jobs Act and had yet to settle on a final design. Although the White House did not comment on the new proposal, an administration official confirmed that it was notified of the search for alternative pay-fors prior to the millionaire surtax idea being leaked to the press.

By shifting gears on the pay-for provisions, the Democratic leadership is acknowledging that the current measures designed to pick up the cost of the jobs bill don't have the support of the entire caucus. The Obama administration had called for the congressional super committee, already tasked with finding $1.2 trillion in deficit reduction, to find additional savings to pay for the legislation, which includes a host of tax credits and stimulative spending measures. As guidance, the White House suggested limiting itemized deductions for individuals making more than $200,000 a year, eliminating tax subsidies for certain oil and gas companies, ending tax breaks for corporate jet owners, and treating capital gains earnings as ordinary income.

Oil-state Democrats had balked at that proposal. Others worried that it would have a sharp negative effect on charitable giving.

In a caucus meeting on Tuesday, Senate Majority Leader Harry Reid (D-Nev.) entertained those concerns and offered a concession: He would replace the president's pay-for with one that put the burden on the shoulders of millionaires.

Whether the move will be enough to placate the full caucus is unclear. There are, conceivably, members who will oppose tax hikes even for the well-off. When Sen. Chuck Schumer (D-N.Y.) proposed a new tax bracket for millionaires during the debate over extending the Bush tax cuts in December 2010, the proposal failed to overcome a filibuster. Still, Reid pitched the idea -- should it be chosen -- as the one that would get the party as close to 53 votes in the Senate as possible.

That, of course, doesn't come close to guaranteeing passage. Senate Minority Leader Mitch McConnell (R-Ky.) could block a vote on the jobs act by holding on to 40 votes within his own party. And that doesn't even take into consideration the obstacles in the House, where the prospects seem utterly remote after Majority Leader Eric Cantor (R-Va.) said on Tuesday that he had no plans to bring the legislation to the floor.

Comments

[Grichde]

06:51 PM on 10/12/2011

So is this the same jobs bill that Harry Reid refused to introduce, and Mitch McConnell had to introduce?

Is this the same jobs bill that Obama couldn't get enough democrats to support?

[Independent66]

01:06 AM on 10/08/2011

Where is there any study that 1 year tax reductions will motivate any business to make a hire? If a small or medium business hires a new employee they are assuming significant incremental costs that must be covered by revenue increases. The numbers say that a new employee earning $70k would cost an extra 20% for direct benefits. That is roughly another $14k directly associated with the individual and other costs like space, equipment, services, etc. Most businesses would look to an increase in revenues of at least $150k and a lot more than that if their cost of services or goods was relatively high, like car manufacturing or computer hardware manufacturing, etc. No business will take on more costs that represent a multiple year cost for a 1 year tax break! A 100 person company might save $1-1.5k per person for 1 year. That is $100-150k once and in my example $84k every year. It's just math and the one year savings will not motivate any business to make a permeant hire!
I'm on the Board of a number of companies and we have seen our healthcare costs increase by about 10% per year for the last 2 years. Who knows if this is due to the Healthcare law or something else. I can assure you that the uncertainty for continued healthcare increases, regulatory costs and permanent tax increases are a major drag on hiring.

[exhale09]

10:09 AM on 10/07/2011

I'm amused at those Republicans who are now yelling about the "too complicated tax code"

I make a modest living, I live modestly... MY tax return is not "complicated" at all.
I don't think most average Americans tax returns are all that "complicated.

It's the wealthiest Americans tax returns that are "complicated"
THEIR tax code is SO full of loopholes, deductions, and special tax shelters etc...they have to hire high dollar accountants to figure them out for them...and WHY are "their" tax returns so "complicated"?
Because the very Conservative law makers who are complaining that the tax code is a mess and "too complicated" are the ONES who COMPLICATED the tax code in the first place with their legislation to continuously create more ways for the wealthy and for Corporations to avoid paying taxes!

End the giant loopholes and ridiculous Government subsidies for the wealthy, etc. etc. etc. and establish one RATE for them to pay on their total REAL income. Period.
Presto! Their tax return becomes UNCOMPLICATED and they will begin to actually pay their fair share on their REAL income for a change. Two problems solved.

[ennis438]

10:44 AM on 10/06/2011

Old reliable Mitch will do anything possible to assure the fat cats win and the middle class and poor continue to be the slaves of the corporate welfare kings and queens. And good old Mitch will continue to rake in the dirty money from these robbers of the American way , and continue to purchase elections like he and his criminal thugs have done before.

[unionave]

12:25 AM on 10/06/2011

After GWB finished handing out tax cuts to his constituents "the elite haves and have mores" Wage earners are now paying 3 X the tax rate of the corporate investment incomes pay .

That cut in government revenue is second only to the corporate duty free agreements in revenue .
Tax cuts always bring about recessions and deficits . Mainly because the Republicans cut the amount of Federal tax money being returned back to the States . Which reduces the local money in circulation . What follows is local job loses and local tax hikes .

The Republicans then use the tax payer money to enhance the wealth gains of the wealthy in a variety of ways . Such as "Star Wars" and "war on" everything imaginable . How much are we paying for those road side terror alert signs ?

GWB not only set new records of government revenue cutting but he also left behind several debt creator operations which this President is not getting cooperation from Congress to end . Mainly because there is still wealth being gained from these operations .

[hgus]

03:15 PM on 10/05/2011

The bottom 40% of americans don't pay any taxes. The Rich pay 80% of the taxes in this country. Is that fair?

Translation

Lets raise taxes on the poor and middle class and give tax cuts to the rich. Because that would be "fair".

How else could you read that?

[The Accountant]

05:19 PM on 10/05/2011

That's an ignorant statement. They don't pay taxes because they barely make enough to live. But many are supporting themselves, living on a shoestring. They don't pay taxes because there is something called "exemption" if you do a tax return....if is barely enough to cover the bare necessities of living. Tax cutss already exist for the rich...capital gains tax rate, and many many more incentives for those that have money to reinvest into the U.S. economy. it would appear many are taking that money outside the U.S. to exploit cheap labor in other countries. So, the answer is YES, tax fairly...but take out the loopholes and special breaks for the rich. A flat tax is likely the answer...rather than trying to accomplish economic goals through tax laws, since the intent is not working out.

[hgus]

06:47 PM on 10/05/2011

My point was when the GOP says "40% of all americans pay no taxes, is that fair" what they are actually proposing is RAISING their taxes.

I agree that those who do not pay taxes are defined as a family of 4 making less than $22,400 per year in income. I agree they do not make enough money to live and I believe that they should not be taxed more.

I believe that a flat tax would do exactly that.

Herman Cain for example wants a tax rate of 9% for everyone. That would mean that the poor family making 22k would now cough up an extra $2k. (Which they cannot afford) and someone making a million would GET an extra $60,000, which they do not need. That is how a flat tax would work. It would be regressive and hurt the poor and benefit the rich.

That is not what we need.

I believe that the GOP would like to raise taxes on the 40% who pay no taxes. They say it so much, they call it "unfair" that "so many pay nothing" so how does that not translate into them wanting to raise taxes on the poor and give tax breaks to the rich?

[clearasmud]

11:31 PM on 10/05/2011

14 million out of work.
42 million below poverty level.
Middle Class Purchasing Power is the same as in 1980.
The Top 1% own 42% of the Nations Wealth.

That is how you read that.

[hgus]

03:09 PM on 10/05/2011

Hell go for a 20% surtax on each dollar earned over a million. Then force the GOP to settle on 10%.

[gramma61]

08:53 PM on 10/05/2011

Is that on net or gross?

[hgus]

09:02 PM on 10/05/2011

I have no idea. I wan't making a % recommendation. i was more making a how to fight the issue recommendation.

The Dems have a history of starting at the bare minimum that we need then getting none of it. Im just suggesting that we fight the battle from a stronger position.

The people who support raising taxes on the rich probably don't care if you raise it 5% or 25%. Only the rich care about that. And given that support for tax increase on the rich is so incredibly high right now, and regarded as the right thing to do.. They need to win this fight.

[gisellestwocents]

03:03 PM on 10/05/2011

I predict that no congressperson who votes down the jobs act will be re-elected.

[hgus]

03:16 PM on 10/05/2011

Exactly why the GOP will not allow a vote on the jobs act. They don't want to be on the record opposing job creation.

[gisellestwocents]

02:57 PM on 10/05/2011

There will be a stealth Democratic takeover of congress in 2012 if the Republicans block job growth -- extremely manipulative and counterproductive.

[exhale09]

10:12 AM on 10/07/2011

There won't be anything "stealth" about it. You will hear a loud "giant sucking sound" of Conservatives OUT of Congress.

[cdterm47]

02:53 PM on 10/05/2011

There sat John Connor, shackled, trying to warn about the danger of the Terminator. Obama's economic initiatives reminds me of Connor's warnings. To paraphrase: "Obama is out there. Obama is designed to do one thing and do it well-- to destroy free market capitalism. Obama is coming and Obama will not stop for anything in order to accomplish his mission!!! DON'T YOU GET IT?" Then John Connor is sent to a cell to where he eventually witnesses the destruction of the "police station" by the Terminator.

[ctheleroys]

02:34 PM on 10/05/2011

"Others worried that it would have a sharp negative effect on charitable giving." ..sure. As if the 14million unemployed did not phase giving to the charities at all.

[coldsharpblade]

02:25 PM on 10/05/2011

why can't these democrats work with our president and get something done for him? oh that's right they want to get reelected

[gisellestwocents]

03:00 PM on 10/05/2011

The president is a millionaire and has a job. The jobs bill is for those who need one. Some people actually care about others.

[clearasmud]

01:51 PM on 10/05/2011

First Thing Repugs Need To Know: The Rich Are Not The Job Creaters. That Is A Myth.

All this can easily be googled and studied. It just takes a little time and reading.

[clearasmud]

01:46 PM on 10/05/2011

Repugs always vote, as a block, as they are told to vote. They are Ideologs.

Democrats, however, have brains and think. They cannot be lead around by the nose. Therefore it takes debate and discussion.

The Repugs know that too.

[Charles Queen]

01:30 PM on 10/05/2011

I'v said it before and I still say it.The rich and wealthy and cooporations etc knew this was coming long before it ever was brought to the publics attention.You can bet that they all have had their lawyers accountants etc dig thru every book there is and have safegaurded their money in ways that they government is not going to be able to tax them or do anything else to them.Thats why they stay rich and wealthy.There's always ways around any laws etc that the government may try to come up with

[The Accountant]

05:30 PM on 10/05/2011

Charles you are exactly right. I had wealthy clients for years. One of them would repeatedly call me in the middle of the night saying he was worried about his money. Saying the distribution of wealth in this country is so unbalanced - he was worried about a massive redistribution. So, indeed, he would figure out ways to protect it. Through trusts, foundations that really aren't used for intended purpose, corporations, partnerships, and the best of all GOLD held outside the bank, carefully hidden. You couldn't be more correct sir!!