现有税% tax rate 将会延长至明后年-temporary tax rate extension
White House, GOP look for middle ground on taxes
TopWhite House adviser David Axelrod stressed that President Barack Obamaopposes a "permanent" extension of current tax rates for individualsmaking more than $200,000 a year and married couples making more than$250,000.
But Axelrod, appearing on twoSunday television talk shows, was carefully silent on the possibilityof extending current tax rates for the short term. He said he wants toleave negotiations to Obama and members of Congress.
"Thebottom line is he wants to sit down and talk about this," Axelrod said."There is no bend on the permanent extension of tax cuts for thewealthiest Americans."
A compromisewould put off fundamental questions about taxes for the time being,virtually guaranteeing their prominence as campaign issues heading intothe 2012 presidential election. That debate also would dovetail with amore profound discussion over how to rein in deficits and reduce thenation's escalating debt.
Congressreturns this week with Democrats in control of the House and Senate fora lame-duck session that is expected to stretch into December. ButRepublican votes are essential and the GOP has additional leveragebecause it will begin the new year with Republicans in charge of theHouse and with more members in the Senate.
SenateMinority Leader Mitch McConnell has introduced legislation that wouldextend the current tax rates permanently, but on Sunday signaled anopenness to negotiate.
"I'm willing tolisten to what the president has in mind for protecting Americans fromtax increases," McConnell, R-Ky., said in a statement.
Twoprominent Republicans conceded on Sunday that the best Congress mightbe able to accomplish in the coming weeks is a short term-continuationof the current tax rates, set under President George W. Bush in 2001and 2003.
"If the president wants tocompromise on a two- or three-year extension ... if that's all we canget out of the president, and he is the president, so we'll work withhim on that," said Sen. Jim DeMint, a South Carolina Republican and aleader of his party's conservative wing.
Likewise,Sen. John McCain of Arizona, the Republican presidential contender in2008, said he could fathom a short-term extension of all the tax cuts.McCain voted against the Bush tax cuts, saying they disproportionatelybenefited wealthy Americans and did not rein spending.
"Theyshould be extended until we are out of this recession," McCain said."At such time we can look at other tax hikes. But when we're in aserious recession I cannot believe that raising taxes is a good thingon anybody."
In fact, the recessionofficially ended in June 2009, but the recovery has been markedly slow,with unemployment stuck at 9.6 percent, and in danger of sputtering.
Obama,fresh from a round of international negotiations that yielded mixedresults, will put his bargaining skills to the test again this week ata White House meeting and dinner with a bipartisan group ofcongressional leaders. Democrats will be looking for his signal on howto proceed on tax rate extensions.
SomeSenate Democrats have already been laying down their markers, however.Sen. Chuck Schumer, D-N.Y., argued for current tax rates to be extendedfor all taxpayers except those making more than $1 million. He saidsuch a limit would ensure that tax rates would remain the same for themiddle-class and "virtually all small businesses."
Schumer said millionaires and billionaires have seen their incomes rise this decade while middle-class incomes have fallen.
Meanwhile,Sen. Mark Warner, a moderate Virginia Democrat and a formerentrepreneur worth millions of dollars, has proposed letting tax ratesexpire for the top 2 percent of earners while enacting targetedbusiness tax cuts instead.
"The problemwith the two-year extension is ... extensions have a tendency to end upbecoming permanent and most economists would say giving folks like mean additional tax cut might not be the best value," he said.
Axelrod appeared on "Fox News Sunday" and NBC's "Meet thePress." McCain appeared on NBC and DeMint on Fox. Schumer spoke on CBS'"Face the Nation." Warner appeared on CNN.
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