Ellington

Mississippi Sens. Thad Cochran and Roger Wicker will likely side with their Republican colleagues Saturday in blocking a return to pre-Bush-era tax rates for wealthy Americans that the U.S. House of Representatives passed yesterday.

The House extension, as well as the Senate proposal scheduled for a vote Saturday, would preserve tax cuts for individuals making up to $200,000 and families with incomes below $250,000 but restore higher, pre-2001 tax rates above those income levels. Wicker and Cochran signed on to a Dec. 1 letter from Senate Republicans opposing legislation that would allow any part of the Bush tax cuts to expire, which they called a "job-killing tax hike."

The House passed its extension by a 234-188 margin, voting largely along party lines. Mississippi's two lame-duck Blue Dog Democrats, 1st District Rep. Travis Childers and 4th District Rep. Gene Taylor, split on the tax cuts, with Childers voting for the extension and Taylor joining the Republicans in opposing it. Republican 3rd District Rep. Gregg Harper also voted against the extension, while Democratic 2nd District Rep. Bennie Thompson voted for it.

In January, state Sen. Alan Nunnelee, R-Tupelo, will take Childers' place, while Republican state Rep. Steven Palazzo, R-Biloxi, will succeed Taylor.

The House action was a largely symbolic vote, however, as is the Senate effort tomorrow, according to The New York Times and The Associated Press, among others. While there is bipartisan agreement on the economic value of extending tax cuts for most Americans, Congressional Democrats have largely opposed an extension of the lower rates for the wealthiest.

The Times and AP reported yesterday that President Barack Obama is willing to concede an extension on all of the Bush tax cuts, however. In return, he is seeking an extension of unemployment benefits that have kept 3 million people away from poverty during the recession, the Labor Department estimates. Republicans have blocked previous efforts to extend benefits since the Nov. 2 midterm elections, arguing that Congress should first address the country's budget deficit by cutting spending.

Mississippi Economic Policy Center Director Ed Sivak said that extending unemployment assistance and tax cuts is necessary given the national economy's instability.

"A lot of the data that we've seen recently are showing that there's going to be slow (economic) growth for the next several years," Sivak said. "I think a temporary extension of those is warranted."

Returning to higher income-tax rates, especially those for working families, would hurt economic recovery, he said.

"The economy's not quite ready for a hit like that," Sivak said.

Restoring higher rates on wealthier Americans might not be as detrimental to the economy, he added. While some research suggests that the higher tax rates would slow hiring and diminish investment, most small businesses would not see a tax increase, Sivak said.

Previous Comments

ID

161179

Comment

I wish they can explain the benefit of extending the tax cuts for the rich!? They had them for almost 10 years and the deficit is steadily increasing, while the value of the dollar is steadily decreasing? The Republicans are committing economic suicide, if we are to follow their lead on legislation.

Author

Duan C.

Date

2010-12-03T15:04:08-06:00

ID

161193

Comment

Great point, Duan C. These Republicans really have President Obama by the walls (with a B). It is so mean: So cruel! They know the position of the middle class if taxes go up during this period of unemployment numbers @ 9.8%. This is two points higher than our last quarter. What is interesting is the fact that the TEA Party folks voted for smaller government and less involvement. Are these folks crazy or are they just voting nuts? I keep telling myself that when you coninue to try to make sense of non-sense, at some point you will come to the realization that you can't because it is CRAZY. The bottom line is: "Let's get rid of Obama." The Republicans and TEA folks have no other agenda!

Author

justjess

Date

2010-12-06T10:50:02-06:00