Domestic Taxes

Senate Democrats will put off a vote on extending tax cuts until after the November elections, according to a senior Democratic aide. 

Jim Manley, spokesman for Majority Leader Harry Reid (D-Nev.), said Thursday night in a statement that work on legislation is on hold until a lame-duck session saying "we will come back in November and stay in session as long as it takes to get this done."

"Democrats believe we must permanently extend tax cuts for the middle class before they expire at the end of the year, and we will," Manley said. "Unfortunately, to this point we have received no cooperation from Republicans to do so. Democrats will not allow families in Nevada and across the country to suffer or be held hostage by Republicans who would rather give tax giveaways to millionaires and corporations that ship jobs overseas."

Rift between centrist and liberal Democrats derails plans for House and Senate votes to extend middle-class tax cuts.

The U.S. Chamber of Commerce on Thursday announced its opposition to Senate legislation providing a payroll tax holiday to U.S. multinational companies that shift overseas jobs to the U.S. 

The bill, Creating American Jobs and End Offshoring Act, grants a two-year payroll tax holiday for companies that take on new employees who perform services in the U.S. that were once done abroad. The Chamber deems the provision a "zero sum game" when it comes to boosting economic activity internationally. 

Poll results from the National Association of Home Builders (NAHB) show strong opposition to Congress tampering with the mortgage interest deduction.  

If the Senate can't pass an extension of the Bush-era tax cuts the House may take the lead, a Democratic leader said Thursday. 

House Majority Leader Steny Hoyer (D-Md.) said while the House is waiting to see what the Senate does, his chamber may "take over the effort" if the upper chamber can't move legislation. 

The comments came this afternoon as Senate and House Democrats were still working out a strategy on when to vote on extending, at the least, middle-class tax cuts. 

On a 237-187 vote, the House on Thursday approved a $42 billion bill to provide aid to small businesses. 

Senate Democrats on Thursday failed to reach a conclusion on how to handle the expiration of Bush-era tax cuts.

Sen. John Kerry (D-Mass.) on Thursday said time appears to have run out on getting enough support to pass an extension of the middle-class Bush-era tax cuts before the election. 

Senate Finance Chairman Max Baucus (D-Mont.) on Thursday cast some doubt on whether his chamber would vote to extend Bush-era tax cuts before November's election. 

Ways and Means Chairman Sandy Levin (D-Mich.) on Thursday said that no decision has been made on whether the House will act before the election on Senate legislation granting a payroll tax holiday to companies that shift overseas jobs to the U.S.