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May 25, 2012

House could vote this summer on extending Bush-era tax cuts

The Republican-dominated House of Representatives is likely to vote on extending Bush-era tax cuts, which expire Dec. 31, this summer.

The plan announced Friday by Majority Leader Eric Cantor, R-Va., is likely to have strong support in the House, but stall in the Democratic-dominated Senate. President Barack Obama has said he only wants the cuts extended for most people earning less than $250,000.

The cuts would add about $3.8 trillion to deficits over the next 10 years, according to the nonpartisan Congressional Budget Office, but supporters of the extension contend the cuts will spur enough economic growth to prod the economy and keep revenues healthy.

Here's part of Cantor's Friday memo:

Very little of what we do this summer will be able to offset the harm to small businesses if the largest tax increase in American history is allowed to go into effect on January 1, 2013. In fact, the Congressional Budget Office (CBO) warned us earlier this week that this massive tax increase will likely contribute to what would “probably be judged to be a recession.” Working families and small business should not be saddled with the uncertainty of a looming tax increase as they attempt to invest and grow for the remainder of this year.

That’s why Chairman Camp (Rep. Dave Camp, R-Mich.) and the Ways and Means Committee have been working on pro-growth reform to simplify the tax code.

Knowing that comprehensive reform will take time, we must ensure that while Congress is working to bring about competitive change, government does not increase the cost of business.

Therefore, before we leave for August, I expect to schedule a vote on legislation
preventing the largest tax increase in history.  The Senate should join us in providing this very basic level of certainty prior to November.

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Tote Handbags

Yups, its so realistic.Thanks for your great post.

jthomasin

I think this issue could be a big winner for Barack. He will draw a line in the sand and stick to it this time. The public will agree and the GOP's hands will be tied.

Jerry

This is a well-known and long-expected conservative tax increase. After all, if they had done their homework in the first place, they would have made it permanent in 2001-2003. They CHOSE to not do so, figuring it would work (and thus would be made permanent because it was supposed to work--according to conservative supply-side economics). The problem: It failed. OOPS !! And now they want their PROVEN failure to be passed AGAIN? WHY ???

littlebadwolf

cantor wants to add 3.8 trillion
dollars to the national debt, but the republicrats are screaming that the current administration is spendthrift???

wake up and smell the phosgene!

pseudonymous

"Very little of what we do this summer will be able to offset the harm to small businesses if the largest tax increase in American history is allowed to go into effect on January 1, 2013."

Because businesses were in worse shape before the cuts.

How are they expecting to pay for the wars without increasing taxes?

ibsteve2u

Just out of curiosity, how long does it take before tax cuts create jobs? Seems like we've lost a awful lot of jobs since those tax cuts.

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