Lawmakers have been working on a deal to avoid the fiscal cliff at the end of the year, when the Bush-era tax rates expire and sequestration takes effect. Democrats have called for extending the Bush-era rates for those making less than $250,000 a year, while Republicans have said raising taxes on anyone harms the economy.
McConnell called on Senate Majority Leader Harry Reid (D-Nev.) to hold a vote on a plan proposed by Speaker John Boehner (R-Ohio), which would permanently extend the Bush tax rates for income less than $1 million. Boehner’s plan would also replace the $109 billion sequester with other budget cuts. The House will vote on that plan later Thursday.
“This president may want to soak the American people to fund his vision of a social welfare state. But we’re not going to let him do it,” McConnell said. “Later today, Republicans in the House will pass a bill that protects more than 99 percent of the American people from the tax hike Democrats want to slap them within two weeks.”
Reid has called on Boehner to allow a vote on a Senate-passed bill, the Middle Class Tax Cut Act, which would extend the tax rates for 98 percent of taxpayers, but Boehner decided Wednesday not to hold such a vote.