Conservative Dems Reject Pelosi On Tax Cuts

U.S. House of Representatives Speaker Nancy Pelosi on Thursday affirmed her support for letting lower tax rates for wealthier Americans expire at year-end, despite opposition by several Senate Democrats who say the economy is too fragile for higher taxes.

Fiscally conservative Senate Democrats Evan Bayh, Kent Conrad and Ben Nelson all have said they believe lower tax rates for all income groups should be renewed when they expire at the end of the year.

Pelosi said that does not change her position.

"Our position has been that we support middle-income tax cuts. The tax cuts at the high end have increased the deficit enormously," she said.

Her comments are part of a broad debate over whether to renew tax cuts enacted in 2001 and 2003 under former President George W. Bush that are set to expire at year-end. President Barack Obama and many congressional Democrats want to extend the lower rates for individuals earning less than $200,000 or couples making less than $250,000, but not for those earning more.

At the center of the debate among Democrats is whether economic stimulus or deficit reduction should be the top policy priority.

About 2 to 3 percent of Americans fit into the upper income categories.

There is a guessing game going on in Washington as to when the Democrats will address the tax issue. Some believe they will wait until after the November elections to avoid being accused of raising any taxes before voters head to the polls.

Because of budget rules, lawmakers need to find off-setting revenue to fund extending the lower rates for those in upper income groups, but not for the so-called middle class and under categories.

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[First-- what budget? The democrats refused to pass one, so I guess there's no rules needed. Second-- they don't need to find 'off-setting revenue' to 'pay' for not taking our money. That's just taking it out of the other pocket (they must think we're stupid.) How about this-- use THEIR pay and benefits as the offsetting revenue!-- Editor]