Senate to Debate Bush Tax Cuts After Recess

By
Thursday, August 05, 2010 at 10:35 am

Belying the expectations of some Democrats, Senate Majority Leader Harry Reid (D-Nev.) has indicated that the Senate will not punt on the issue of the  Bush tax cuts until after midterm elections and will instead debate the matter shortly after the August recess. It’s a clear sign that Reid and the Obama administration believe that a debate about letting the tax cuts expire can serve as a proxy for a larger debate about the policies of the Bush Administration — something they’d relish in the lead-up to midterms.

Lining up the entire Democratic caucus to see the issue that way, however, might prove the biggest challenge. Moderate Democratic Senators Evan Bayh (D-Ind.) and Kent Conrad (D-N.D.) are already indicating they oppose the president:

Bayh has called on Congress to extend all of the Bush-era tax cuts, including those benefiting the wealthiest, while the economy continues to recover.

“To just go out and raise taxes with no spending restraint, particularly during a recession — [it’s] just not the right time to do that,” he said during a Wednesday appearance on MSNBC.

Bayh argued that people who fall into the highest-income tax brackets “continue to spend at a higher rate, propping up consumer demand.”

Families that earn $210,000 or more make up the top 5 percent of income earners and account for nearly 30 percent of consumer spending.

Conrad said he would support a short-term extension of the Bush tax cuts for the highest income earners.

“My reaction would be don’t cut spending, don’t raise taxes, and that would mean on anyone,” he told reporters last month, noting that experts predict continued economic weakness over the next two years.

There’s a flaw in Bayh’s argument about high income earners propping up consumer spending. While it’s true in a static sense, it has no bearing on the question of whether changes in the tax code will actually stimulate or depress their consumer spending habits. Low income earners tend to spend a majority of their paycheck and thus changes to their tax burden are generally thought to have a more direct impact on their degree of spending. High income earners, on the other hand, spend a much smaller percentage of their paycheck each month. Changes to their tax burden might alter their total take home pay but do little to significantly change their overall consumption habits.

Follow Jesse Zwick on Twitter


Comments

48 Comments

Tweets that mention Senate to Debate Bush Tax Cuts After Recess « The Washington Independent -- Topsy.com
Pingback posted August 5, 2010 @ 10:38 am

[...] This post was mentioned on Twitter by Sharon and Stephen White, WashIndependent. WashIndependent said: Senate to Debate Bush Tax Cuts After Recess – http://bit.ly/8Xh83b [...]


Senate to Debate Bush Tax Cuts After Recess – The Washington Independent | FinanceMoz.com
Pingback posted August 5, 2010 @ 11:17 am

[...] Senate to Debate Bush Tax Cuts After RecessThe Washington Independenthas indicated that the Senate will not punt on the issue of the Bush tax cuts until after midterm elections and will instead debate the matter shortly after …Battle lines being drawn in Washington over Bush-era tax cuts set to expire …Los Angeles TimesGeithner says GOP wrong, ending tax cuts for wealthy won't hurt small businessWashington PostThe people speak: Keep Bush tax cutsNew York PostDetroit Free Press -The City Wire -Politico (blog)all 735 news articles » [...]


Senate to Debate Bush Tax Cuts After Recess – The Washington Independent | BabbleFinance.com
Pingback posted August 5, 2010 @ 11:29 am

[...] Senate to Debate Bush Tax Cuts After RecessThe Washington Independenthas indicated that the Senate will not punt on the issue of the Bush tax cuts until after midterm elections and will instead debate the matter shortly after …Battle lines being drawn in Washington over Bush-era tax cuts set to expire …Los Angeles TimesGeithner says GOP wrong, ending tax cuts for wealthy won't hurt small businessWashington PostThe people speak: Keep Bush tax cutsNew York PostDetroit Free Press -The City Wire -Politico (blog)all 735 news articles » [...]


Senate to Speaking Bush Tax Cuts After Incurvature
Pingback posted August 5, 2010 @ 11:36 am

[...] READ MORE If you enjoyed this article, please consider sharing it! Tagged with: Bush Tax • Senate • Speaking  [...]


Senate to Debate Bush Tax Cuts After Recess – The Washington Independent | FinanceLogger.com
Pingback posted August 5, 2010 @ 11:43 am

[...] Senate to Debate Bush Tax Cuts After RecessThe Washington Independenthas indicated that the Senate will not punt on the issue of the Bush tax cuts until after midterm elections and will instead debate the matter shortly after …Battle lines being drawn in Washington over Bush-era tax cuts set to expire …Los Angeles TimesGeithner says GOP wrong, ending tax cuts for wealthy won't hurt small businessWashington PostThe people speak: Keep Bush tax cutsNew York PostDetroit Free Press -The City Wire -Politico (blog)all 735 news articles » [...]


Senate to Debate Bush Tax Cuts After Recess – The Washington Independent | FinanceNox.com
Pingback posted August 5, 2010 @ 12:26 pm

[...] Senate to Debate Bush Tax Cuts After RecessThe Washington Independenthas indicated that the Senate will not punt on the issue of the Bush tax cuts until after midterm elections and will instead debate the matter shortly after …Battle lines being drawn in Washington over Bush-era tax cuts set to expire …Los Angeles TimesGeithner says GOP wrong, ending tax cuts for wealthy won't hurt small businessWashington PostThe people speak: Keep Bush tax cutsNew York PostDetroit Free Press -The City Wire -Politico (blog)all 731 news articles » [...]


Senate to Speaking Bush Tax Cuts After Incurvature | Best Breaking News
Pingback posted August 5, 2010 @ 12:38 pm

[...] READ MORE [...]


Nancy Folbre: Chickenhawk of the Tax War – Liberty Papers | FinanceLogger.com
Pingback posted August 5, 2010 @ 1:59 pm

[...] lines being drawn in Washington over Bush-era tax cuts set to expire …Los Angeles TimesSenate to Debate Bush Tax Cuts After RecessThe Washington IndependentGeithner says GOP wrong, ending tax cuts for wealthy won't hurt small [...]


Scott Tom - Online Poker | Poker
Pingback posted August 5, 2010 @ 2:19 pm

[...] Senate to Debate Bush Tax Cuts After Recess « The Washington … [...]


Senate to Debate Bush Tax Cuts After Recess – The Washington Independent « Contacto Latino News
Pingback posted August 5, 2010 @ 2:29 pm

[...] Senate to Debate Bush Tax Cuts After Recess – The Washington Independent By GN  | Published: 2010-08-05 07:42:36 [...]


The Bush tax cuts and small business – Washington Post (blog) | BabbleFinance.com
Pingback posted August 5, 2010 @ 2:41 pm

[...] lines being drawn in Washington over Bush-era tax cuts set to expire …Los Angeles TimesSenate to Debate Bush Tax Cuts After RecessThe Washington IndependentThe people speak: Keep Bush tax cutsNew York PostDetroit Free [...]


The Bush tax cuts and small business – Washington Post (blog) | FinanceGrind.com
Pingback posted August 5, 2010 @ 3:03 pm

[...] lines being drawn in Washington over Bush-era tax cuts set to expire …Los Angeles TimesSenate to Debate Bush Tax Cuts After RecessThe Washington IndependentThe people speak: Keep Bush tax cutsNew York PostDetroit Free [...]


Rasmussen Poll On Bush Tax Cut: One Of Many – Huffington Post (blog) | FinanceLogger.com
Pingback posted August 5, 2010 @ 3:07 pm

[...] lines being drawn in Washington over Bush-era tax cuts set to expire …Los Angeles TimesSenate to Debate Bush Tax Cuts After RecessThe Washington IndependentNew York Post -Detroit Free Press -Liberty Papersall 761 news [...]


Rasmussen Poll On Bush Tax Cut: One Of Many – Huffington Post (blog) | FinanceMoz.com
Pingback posted August 5, 2010 @ 3:16 pm

[...] lines being drawn in Washington over Bush-era tax cuts set to expire …Los Angeles TimesSenate to Debate Bush Tax Cuts After RecessThe Washington IndependentNew York Post -Detroit Free Press -Liberty Papersall 758 news [...]


Rasmussen Poll On Bush Tax Cut: One Of Many – Huffington Post (blog) | FinanceNox.com
Pingback posted August 5, 2010 @ 3:35 pm

[...] lines being drawn in Washington over Bush-era tax cuts set to expire …Los Angeles TimesSenate to Debate Bush Tax Cuts After RecessThe Washington IndependentNew York Post -Detroit Free Press -Liberty Papersall 754 news [...]


Senate Democrats Will Spend Recess Contrasting Parties on Economy North Capitol Street
Pingback posted August 5, 2010 @ 4:11 pm

[...] Senate to Debate Bush Tax Cuts After Recess « The Washington … [...]


Geithner Pushes Tax Boost for Wealthy – Wall Street Journal | FinanceLogger.com
Pingback posted August 5, 2010 @ 4:15 pm

[...] lines being drawn in Washington over Bush-era tax cuts set to expire …Los Angeles TimesThe Washington Independent -New York Post -Detroit Free Pressall 755 news [...]


strangely_enough
Comment posted August 5, 2010 @ 3:55 pm

Moderate Democratic Senators Evan Bayh (D-Ind.) and Kent Conrad (D-N.D.)

Why is it necessary to call conservative Democrats “moderate,” when they seem no more moderate than Republicans?


Jblow50
Comment posted August 5, 2010 @ 5:13 pm

“Changes to their tax burden might alter their total take home pay but do little to significantly change their overall consumption habits.” Do you really believe that? I'm >250 earner and very small business owner. You just watch how fast I lock up my spending if my go up a $1 more than they already are. I'm barely hanging on to my staff as it is.


Remarks by the President on Behalf of Alexi Giannoulias North Capitol Street
Pingback posted August 5, 2010 @ 7:00 pm

[...] Senate to Debate Bush Tax Cuts After Recess « The Washington … [...]


Bored during the Gov debate? Play the Dems bingo card North Capitol Street
Pingback posted August 5, 2010 @ 7:14 pm

[...] Senate to Debate Bush Tax Cuts After Recess « The Washington … [...]


BabyBoomer
Comment posted August 5, 2010 @ 6:39 pm

Well, I'm a well below $250k 'er and if mine don't go down, perhaps a general strike would make an impression.

Why do those that can afford it, not pay, and those that can't foot the bill.

As to those tax cuts, creating jobs, how'd those last couple of years of GWB do for them????

Answer, they didn't


Grannyt53
Comment posted August 5, 2010 @ 6:44 pm

Anyone that thinks the Bush tax cuts only helped the rich hasn't read much of the data provided. The “Tax Burden of the Top 1% Now Exceeds That of the Bottom 95%” Their graph shows how the tax burden has shifted during from 1987 – 2007 from being funded by the lower-middle income working class to the top 1%. My family has always been near the bottom of the middle class. That graph shows the tax cuts the wealthy received gave them the incentive to get out and work harder generating more tax dollars. Check out the graph at
http://www.taxfoundation.org/taxdata/show/24955…


All Around The World News
Trackback posted August 5, 2010 @ 7:57 pm

Senate approves $26 billion for state aid…

We cover the same subject but your aproach is intersting….


strangely_enough
Comment posted August 5, 2010 @ 7:49 pm

Your nonsense talking points ignore the concentration of wealth in the top percentiles that has taken place in the past three decades. Of course they pay more; they've accumulated the majority of the nation's wealth.

And, “the tax cuts the wealthy received gave them the incentive to get out and work harder generating more tax dollars,” is just pathetic peasant mentality cheering on of the gutting of the middle class.


All Around The World News
Trackback posted August 5, 2010 @ 8:53 pm

With a Nod to History, Obama Says Kagan Will be an Outstanding Supreme Court Justice…

We cover the same subject but your aproach is intersting….


All Around The World News
Trackback posted August 5, 2010 @ 9:17 pm

Jobs Bill a Ploy for Democratic Votes, Republicans Say…

We cover the same subject but your aproach is intersting….


All Around The World News
Trackback posted August 5, 2010 @ 9:17 pm

Senate Approves $26B Bill to Stave Off Teacher Layoffs…

We cover the same subject but your aproach is intersting….


All Around The World News
Trackback posted August 5, 2010 @ 9:28 pm

Record Number of Americans Receiving Food Stamp Benefits…

We cover the same subject but your aproach is intersting….


GOP rivals throw verbal punches in nasty second debate North Capitol Street
Pingback posted August 5, 2010 @ 10:03 pm

[...] Senate to Debate Bush Tax Cuts After Recess « The Washington … [...]


RT@america1first “Anchor babie… | america1first.com
Pingback posted August 5, 2010 @ 10:20 pm

[...] Senate to Debate Bush Tax Cuts After Recess « The Washington … [...]


DC Guide
Trackback posted August 5, 2010 @ 11:37 pm

Honor restored for general blamed after Nixon denied authorizing Vietnam bombing…

I am writing to ask for your permission to include your posts on DCguide.com and include a link to your blog in our directory. We would include a link back to your blog fully crediting you for your work along with a profile about you listed on DCguide….


All Around The World News
Trackback posted August 5, 2010 @ 11:50 pm

Senate confirms new intelligence chief…

We cover the same subject but your aproach is intersting….


All Around The World News
Trackback posted August 5, 2010 @ 11:55 pm

Senate sends Fed nominee Diamond back to Obama…

We cover the same subject but your aproach is intersting….


All Around The World News
Trackback posted August 5, 2010 @ 11:56 pm

Senate votes to increase child nutrition funds…

We cover the same subject but your aproach is intersting….


Senators Break for August Recess North Capitol Street
Pingback posted August 6, 2010 @ 12:27 am

[...] Senate to Debate Bush Tax Cuts After Recess « The Washington … [...]


Obama and Bush: Partners in go… | america1first.com
Pingback posted August 6, 2010 @ 3:58 am

[...] Senate to Debate Bush Tax Cuts After Recess « The Washington … [...]


All Around The World News
Trackback posted August 6, 2010 @ 4:25 am

Senate fails to OK funds for years-old settlement with minority farmers – CNN…

We cover the same subject but your aproach is intersting….


Hostility bubbles over in 2nd Bill McCollum-Rick Scott debate North Capitol Street
Pingback posted August 6, 2010 @ 7:15 am

[...] Senate to Debate Bush Tax Cuts After Recess « The Washington … [...]


DC Guide
Trackback posted August 6, 2010 @ 8:38 am

Meet Steny Hoyer: Fifth Congressional District US House of Representatives…

I am writing to ask for your permission to include your posts on DCguide.com and include a link to your blog in our directory. We would include a link back to your blog fully crediting you for your work along with a profile about you listed on DCguide….


Tips Portal
Trackback posted August 6, 2010 @ 11:42 am

Q&A: Why are Democratic freedom fighter reps caving in to Obama Pelosi health bill threats and fear mongering?…

I found your entry interesting thus I’ve added a Trackback to it on my weblog :)…


Shelby Blocks Non-Controversial Fed Nominee North Capitol Street
Pingback posted August 6, 2010 @ 2:37 pm

[...] Senate to Debate Bush Tax Cuts After Recess « The Washington … [...]


All Around The World News
Trackback posted August 7, 2010 @ 12:34 am

Elena Kagan to be Sworn in Saturday…

We cover the same subject but your aproach is intersting….


All Around The World News
Trackback posted August 7, 2010 @ 3:47 pm

Kagan sworn in as 112th justice to Supreme Court…

We cover the same subject but your aproach is intersting….


Philip Klein, American Spectator & Adam Serwer, American Prospect North Capitol Street
Pingback posted August 8, 2010 @ 2:10 pm

[...] Senate to Debate Bush Tax Cuts After Recess « The Washington … [...]


Ccdemuth
Comment posted August 10, 2010 @ 3:30 pm

Jim Himes vs. Fairfield County

Jim Himes: For History’s Biggest Tax Hike Within Two Months of Election Day

Incumbent Democrat Congressman Jim Himes is for a tax hike that he claims will hit only “the rich”. Himes is part of the Democrat majority that will hike the top tax rate on wages by over 13% to 39.6%. He will hike the capital gains tax by a third, to 20%. Under Pelosi and Himes, the tax on dividends will more than double, to 39.6% from 15%. Meanwhile, Himes will also slash in half tax credits for children and kill relief from the marriage penalty.

Hardest Hit: Fairfield County

The hardest hit will be the 4.3 million households whose marginal tax rate will approach 40%. Himes wants to hit 12.5 million American tax payers with history’s largest tax hike in the middle of a job-killing recession. An average of 29,000 tax paying individuals and small businesses per congressional district will be hit hard by the Himes tax hikes. Who will be hit the hardest? It turns out that the district that will fare the worst will be the fourth district of Connecticut. Over 146,000 Fairfield County taxpayers, comprising over a fifth of the district’s population, are members of families that will be forced pay an additional $1.7 billion in taxes next year. That’s more than $39,000 per household.

Jim Himes’ Class Warfare: We All Will Lose

For some voters, Himes’ efforts to stick it to our most successful neighbors and employers may hold some appeal. However, Himes’ tax hikes will have some unintended consequences that the incumbent congressman may not have adequately considered. For example, the 146,000 taxpayers in Fairfield County whose taxes will rise the most are responsible for over 30% of consumer demand in the county. They are responsible for employing over 50% of small business employees. So it is important to remember that when Himes goes after 20% of taxpayers, he also is going after your customers and your employers.

Fight Back: November 2nd

Jim Himes is fighting hard in Washington, DC to redistribute your private property to his endless government programs. On November 2nd, it will be time for Fairfield County to fight back by retiring Himes.


Fairfield County Property Tax | Ohio | County Property Tax
Pingback posted October 20, 2010 @ 1:24 am

[...] Senate To Debate Bush Tax Cuts After Recess « The Washington … [...]


RSS feed for comments on this post.

Sorry, the comment form is closed at this time.