Van Hollen: Extension of Bush tax cuts will not be offset

Rep. Chris Van Hollen (D-Md.), the Assistant to Speaker Nancy Pelosi (D-Calif.), on Wednesday said dire budget predictions by the Congressional Budget Office will not alter Democratic plans to extend middle-class tax cuts enacted under President George W. Bush and not pay for their cost. 

"Our plan is to continue with that portion of the tax cuts that provide relief to people under $250,000," he said, adding that "not at this time" was there a plan to offset the cost of extending these provisions. 

Van Hollen also said there is currently no plan to offset the cost of protecting the middle-class from the alternative minimum tax and extending the 2009 estate tax law. 

"The economy is still climbing out of a ditch," he said, adding, "The problem is if you suck that much money out of the economy at the same time you get an anti-stimulative effect."

Van Hollen's assurance that these tax cuts would not be offset comes as the CBO predicts large budget deficits would reduce national savings, drive up interest rates, and force the nation to borrow more from foreign countries. 

Some lawmakers are thinking twice about not offsetting a two-year extension of these tax breaks since they could potentially add $250 billion to the deficit.

The congressman did not say whether these provisions would be extended for the full two years, which pay-as-you-go rules exempt from offsets, or for a shorter duration. 

"As to the timeframe, I have to take a look at it," he said.