House Democrats may help overrule President Barack Obama by voting to extend George W. Bush-era tax cuts on investment income beyond this year, the Associated Press reported.

Rep. John Adler (D-N.J.) is leading a group of lawmakers who've sent a letter to House Speaker Nancy Pelosi urging the extension of capital-gain and dividend tax rates, according to the wire service. Of the House Democrats, 47 have indicated support for the tax-cut extension, which would be sufficient for the Republican-led effort to win enough votes, the AP said.

The Bush-era tax cuts have been a point of contention between Obama, who wants to increase the tax rate on capital gains while supporting tax breaks for the middle-class and small businesses, and Republicans, who say ending the tax breaks would hamper the country's economic recovery. U.S. Treasury Secretary Timothy Geithner, when asked at a hearing last week about extending the cuts, was noncommittal.

Ending the tax cuts would discourage businesses from investing, while individuals would be disincentivized from saving, the House Democratic group wrote in the letter to Pelosi, according to the AP.


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Bearmaul

Why not eliminate income taxes and the IRS, impose a 23% sales tax on all durable goods, exempt food and those making less than 25 thousand dollars a year, this way if a rich person buys a Jet airplane he or she can't loophole their way out of paying taxes and people who save or invest money in America aren't taxed...Of course rich republicans and rich liberals would never go for it, they need their loopholes so the can invest in the kind of propaganda that keeps the rest of us in line...........

September 29 2010 at 1:08 PM Report abuse +1 rate up rate down Reply
2 replies to Bearmaul's comment
tallbussys

Flat tax rate can be accomplished if ALL Income is taxed at the same rate, no special rates for long term vs short term capital gains, dividends, trust funds etc..

September 29 2010 at 2:20 PM Report abuse +2 rate up rate down Reply
Trevor

When you say "exempt food and those making less than 25 thousand dollars a year", you're mixing apples and oranges. Exempting a given product (like food) implies a SALES tax. Exempting taxation for those making under a certain income threshold implies an INCOME tax. After all, you can't go to the car dealership to buy a new car and pay a tax or not pay a tax based upon a given level of buyer income that can not be verified by the dealership

September 29 2010 at 8:39 PM Report abuse +1 rate up rate down Reply
daveswrath0704

make it very easy if a company want to keep tax cut hire people if they dont hire people no tax cuts in Jan this way they cant keep it and gave it to the top 5% who dont work

September 29 2010 at 11:28 AM Report abuse -3 rate up rate down Reply
1 reply to daveswrath0704's comment
Bearmaul

Gee, What a great Idea but why not go further, why not have the goverment tell all companies how many workers they have to have and what they have to produce and how much, I'm sure there are a few Russian immigrants in this country who miss the long lines just to buy bread and toilet paper and in a few years we can go bancrupt just like the USSR did.....Boy daveswrath you sure do come up with great ideas.......

September 29 2010 at 1:01 PM Report abuse +3 rate up rate down Reply
sfamilyent

The long term capital gains tax cut should be allowed to expire - or - ordinary income tax rates should be cut to match the long term capital gains rate. Extending the long term capital gains tax cut will do nothing to create jobs or to stimulate the economy for anyone except for the wealthy and investment managers. Wrong move, Democrats.

September 29 2010 at 6:42 AM Report abuse -1 rate up rate down Reply
2 replies to sfamilyent's comment
tallbussys

The original capital is not taxed again, only the gains, same as taxing dividends.

September 29 2010 at 2:16 PM Report abuse -1 rate up rate down Reply
frank1946

Obama is trying to destroy the American Economy with Federal Debt which cannot be repaid and then Dems have control over the voters who beg for favors from the King.........in eighteen months America is insolvent ! This man is Evil I believe ! His actions appeal only to women and fools (and Democrats). He hates business, freedom and the Dollar as a store of value.........in short he wants to weaken and dismantle our future and past. Thank God we are catching on to him.

September 29 2010 at 6:33 AM Report abuse +3 rate up rate down Reply
1 reply to frank1946's comment
jblaguski

The problem is Barry has done quite a bit of damage already. But, we need ro real him in before he totally destroys our Country. It's really amazes me how anyone can be a Democrat. Someone needs to explain that to me sometime. It has to be the people freeloading off the Goverment, and the Union people and can't see past the Union Newsletter that come out every month.

September 29 2010 at 3:11 PM Report abuse +1 rate up rate down Reply
jerrym930

Obama keeps saying that the tax cuts will add to the deficit. What he is not saying is that the increased spending by he and the Democrats is equal to what the deficit increase is by extending the tax cuts. Why isn't he pushing reducing spending instead of increasing taxes? Both will reduce deficits. The reason is Democrats spend money to buy votes. The Republicans let us keep our money. The Democrats think it is their money. I wonder why they fail to understand it is called the "Public Treasury"?

September 29 2010 at 4:47 AM Report abuse +3 rate up rate down Reply
1 reply to jerrym930's comment
warrenbent

jerry, while you are certainly correct that Dem's confiscate and spend the fruits of citizens labor for the purpose of buying votes from the intellectually defenseless, you are no better than the sheeple to whom this strategy is designed to appeal if you imagine Republicans let you keep your money. In the last 100 years this country has gone from no income tax to the point where government confiscates nearly half of the fruits of the average citizens labor (this includes all taxes at all levels). During the same time, federal government spending has skyrocketed from 2% of GDP up to an astouding all time high of 25% of GDP. This has been going on under both Rep's and Dem's. In fact, under the last Republican administration average annual federal spending inceased at a whopping 7% per year. Both R's and D's exist to confiscate your freedom and turn it into their power, making each much more like the other than either are like the principles upon which our country was founded.

September 29 2010 at 9:32 AM Report abuse +3 rate up rate down Reply
punnster

Some blame Republicans for the hangup on voting on the tax cuts, but Pelosi knows she can't get it through because of not enough support from her own party because so many of them are fighting a losing battle at the polls. They don't want to commit themselves till after election.

September 29 2010 at 12:23 AM Report abuse +3 rate up rate down Reply
Foltynski Family

To little to late. Democrates will still pay. People have already seen their true colors. Vote againts the people you represent, then you shall be voted out of your seat.

September 28 2010 at 11:58 PM Report abuse +3 rate up rate down Reply
frank1946

Finally, after almost two years, the Dems are starting to THINK clearly !

September 28 2010 at 11:19 PM Report abuse -5 rate up rate down Reply
2 replies to frank1946's comment
jerrym930

No, they are simply changing their narrative to win an election. If voted back in, they will go back to what they were doing, and taxes will go up.

September 29 2010 at 4:48 AM Report abuse +6 rate up rate down Reply
dale long

if you pay federal taxes and vote democrat that is equal to a chicken voting for kentucky fried chickens col. sanders....

September 29 2010 at 4:00 PM Report abuse +1 rate up rate down Reply
Jen

Bailing like rats from a burning ship. Liberals have had their chance. Bush not good, liberals worse

September 28 2010 at 8:41 PM Report abuse +7 rate up rate down Reply
1 reply to Jen's comment
dale long

is slavery equal to socialism?....under both you are owned by someone else....how many of you like being owned? how many of you would rather not be owned? comments pls

September 29 2010 at 4:11 PM Report abuse +2 rate up rate down Reply