U.S. lawmakers selected to negotiate with the government of Obama on the extension of all or some of the tax cuts the Bush said congressional leaders should abandon plans to hold polls until the negotiators can meet.
Sen. Max Baucus, Montana Democrat, and Rep. David Camp, a Michigan Republican, said having the votes immediately on extending lower tax rates for the first $ 250,000 of income, that President Barack Obama proposed would be premature.
Camp, who is the chairman of the House Ways and Means Committee starting in January, and Baucus, chairman of the Senate Finance Committee, was appointed yesterday as Congress delegates to the negotiations. Obama Treasury Secretary Timothy Geithner and the Office of Management and Budget, Jack Lew as representatives of the administration. Arizona Sen. Jon Kyl, Republican House No. 2, and Maryland Rep. Chris Van Hollen, Member of the House Democratic leadership, complete the group.
The negotiators held their first meeting today, the Treasury said.
"I think it's important to have that first meeting to see where we are" before the vote, Baucus said yesterday. Campo agreed, saying that "I think we should give a chance" to start talks on tax cuts.
Negotiating a
Obama appointed Lew Geithner and reached an agreement with lawmakers seeking to prevent the expiration of all 2001 and 2003 tax cuts on 31 December. Obama and many Democrats want to keep rates lower for people with an annual income of $ 200,000 or less and married couples earning no more than $ 250,000 a year. Under the president's proposal, the lower rates expire on incomes above these figures.
Republicans support extending the tax cuts permanent for all income levels.
House of Representatives, Nancy Pelosi, a California Democrat whose party lost control of the camera next month, said earlier that she was planning a vote this week on Obama's proposal.
Senate Democrats have been planning a vote on the same legislation next week, Baucus said earlier this week. Majority Leader Harry Reid, a Nevada Democrat, yesterday declined to say whether that vote would be delayed.
Democratic leaders face some pressure from his party to hold the vote as a test of mettle through Republican to oppose legislation that would keep rates lower for middle-income taxpayers.
"Myself, I'm not talking about commitment," said Sen. Jeff Merkley, a Democrat from Oregon. "I think we should go to the plant and have the vote at $ 250,000."
Seeking a vote
In the House, Massachusetts, Democrat Richard Neal said he was also eager for a vote. Neal is a challenge to Michigan Representative Sander Levin Democrat for first place in the tax-writing Ways and Means Committee.
"I think we're close to the big time," said Neal. "I think both sides want to get a vote on the table."
Van Hollen said the House may vote tomorrow even before adding that "things can change quickly around here."
Obama and Lew Geithner appointed yesterday after meeting for nearly two hours with Republican congressional leaders and Democratic White House. The president said both sides agree that it is necessary to adopt measures to extend tax cuts for middle-income families before the end of the year, though still divided on the tax rates for wealthier Americans.
"There must be some sensible common ground" to resolve differences on taxes, Obama said. Geithner said Lew appointed "to break through this impasse."
Tax Puzzle
The negotiators must deal with six pieces of a puzzle to complete their tax work. Besides the question of the extension of a reduced rate of corporation tax, which must decide whether to keep the rate of 15 per cent tax on most dividends and capital gains in the long term or bring them back to levels higher. They must also resolve a dispute than a decade on the appropriate level of tax on properties worth $ 1 million or more.
Soon expire tax breaks for parents, married couples and low-income workers are also in the mix, as is action to reverse a $ 66 billion in alternative minimum tax in place for this year. Lawmakers are scrambling to restore dozens of tax breaks associated with the company expired at the end of 2009, including a research credit claimed more than 6,000 companies.
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