Lawmakers returning to Capitol Hill deal with tax issues for upcoming year
POSTED: Monday, November 29, 2010 - 3:42am
UPDATED: Monday, November 29, 2010 - 5:54am
WASHINGTON (AP) -- Jim Abrams with the Associated Press reports that Congress has more than a plateful of leftovers to deal with as lawmakers return to the Capitol on Monday.
At the top are the George W. Bush-era tax cuts that are due to expire at year's end.
President Barack Obama and many democrats want to keep them for couples earning less than a quarter of a million dollars. While republicans are bent on making them permanent for everybody.
Tax cuts apply to rates on wage income as well as to dividends and capital gains. A failure to act would mean tax increases for people at every income level.
A meeting scheduled for Tuesday at the White House, will be an early test to wait newly elected republican leaders will do in January.
Senate Majority Leader Harry Reid, the democratic leader from Nevada told the associated press that he suggested the Senate hold two votes: one on the Democratic plan confining the tax cut extension to the middle class, the other on Republican leader Mitch McConnell's plan to extend the cuts to everyone.
Provided that both parties can form an agreement will be the determining factor to taxes until the next presidential election.