By Tyler Dean
The long running stand off between Republicans and Democrats over a wide range of tax cuts could see average Americans paying up to $1,600 a year. The reason for the stand off is differences of whose taxes should be cut and not cut. The Republicans continue to insist on tax cuts for the wealth. Democrats are arguing that continued tax cuts for the wealthy are not fiscally sound.
The White House said in a statement:
“So far, the only reason the middle-class tax cuts have not been extended is that Republicans in Congress continue to insist on cutting taxes once again for the wealthiest few.”
Republicans accuse Democrats of holding American taxpayers hostage to get their way. Republicans want to renew all the tax cuts for one year to give the two sides time to negotiate permanent tax changes. President Barack Obama and Democrats also want a yearlong extension, but insist they will only extend the reductions for households earning below $250,000.
“They’re ready and willing to go right off the fiscal cliff if they don’t get their way,” Senate Minority Leader Mitch McConnell, R-Ky., said.
The tax increase will effect families earning under $250,000 and will see an average increase of $1,600 a year.
Tensions will continue to grow this week as Senate is set to vote on the Democratic proposal to end tax cuts for top earners.
This is certainly not the first time that there has been a stand off in the Senate. The past four years have seen Republicans make similar threats to pressure Democrats to vote their way. Some Americans began to refer to the Republican Party as “The Party of No”, based on how many Democratic proposals they voted down.
Lately, the Republicans have leaned more towards bipartisanship, a move that some strategists believe was meant to help a Republican Presidential nominee. We will keep you updated as both parties seem to be trying to use power plays and American citizens in an effort to appear stronger than the other party.
- GOP, Democrats Restart the Fight Over Bush Tax Cuts (blogs.wsj.com)