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Harry Reid, John Ensign clash as Democratic tax plans blocked

Published Saturday, Dec. 4, 2010 | 9:17 a.m.

Updated Saturday, Dec. 4, 2010 | 9:22 a.m.

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Harry Reid

Click to enlarge photo

John Ensign

WASHINGTON -- It’s back to the drawing board on taxes today after the Senate tried — and failed — to pass Democrat-drafted measures to extend tax cuts and unemployment insurance into the next year.

Majority Leader Harry Reid held the Senate in town Saturday morning to take votes on two tax proposals: an extension of tax cuts on the first $250,000 of income and an extension of tax cuts on the first $1 million of income.

Both went down on procedural votes that picked up 53 “yea” votes, but failed to gain the support of the 60 senators needed to avoid filibuster. Republicans held rank, and were joined in their opposition by a handful of Democrats.

Nevada's senators, as expected, came down about as much on opposite aides of the vote as possible.

"Democrats are fighting to protect middle-class families every way we can," Reid said. "But Republicans cannot stop protecting the people who got us into this mess long enough to do a common-sense thing like cut taxes for the middle class."

Republican John Ensign saw it differently.

"Today we witnessed that political stunts are still alive and well on the floor of the United States Senate," Ensign said. "By setting arbitrary income limits on tax relief, our nation's job creators will be forced to suffer under increased taxes; greatly limiting their ability to create jobs for the many unemployed people across our country."

The first proposal, tax cuts to $250,000, represents the president’s preferred plan; the $1 million was a compromise divined by New York Sen. Charles Schumer and supported by a group of moderates, who say the $1 million threshold will obviate disagreements over who counts as middle class by only raising taxes on millionaires and billionaires.

Republicans objected, saying that raising taxes on anybody during the midst of a recession was a recipe for killing jobs.

The fight over extending tax cuts and unemployment entitlements has grown to a fever pitch in the face of a soaring deficit. A report approved Wednesday by Obama’s bipartisan Debt Commission appointees recommended draconian cuts to social entitlement programs, hikes in taxes and other reductions in spending to bring down the country’s debt levels. Democrats and Republicans alike have called the deficit the single largest threat to national security.

But in this debate, they have very different opinions of what merits belt-tightening — and what is too important to worry about budgeting.

Democrats have been pushing a capped-at-$250,000 tax extension by saying the $700 billion they will save by not including upper income levels can go directly into debt reduction. No tax cut plan currently on the table, Republican or Democrat, contains offsets for the tax cuts it seeks to extend.

Republicans, on the other hand, have refused to approve plans that don’t offset extended unemployment insurance payments, expected to cost about $56 billion over the next year.

Democrats have been quick to point out the apparent hypocrisy in the Republicans’ proposal. “Could you please explain to me why we can extend tax cuts to those making over a million without paying for it, while extending unemployment benefits must be paid for?" Schumer asked prior to Saturday’s vote.

It’s clear though, that the seemingly intractable fight over these tax breaks is only the tip of an iceberg of a much more existential disagreement over tax policy in general.

Several lawmakers spent the hours Saturday morning prior to the vote bickering about the merits of the existing progressive tax system: with Democratic-leaning independent Bernie Sanders of Vermont asking “isn’t it enough” that the top 1 percent of the country takes home almost a quarter of the nation’s income, and Republican Lindsey Graham of South Carolina questioning the fairness of a system where nearly half of all households avoid paying any income tax at all, and the top 1 percent of wage-earners pay 40 percent of the taxes.

In light of Saturday’s failed votes, the House’s passage earlier this week of a $250,000-level tax cut bill is rendered no more relevant than a political statement, leaving the best hope for resolution on taxes and lapsed unemployment benefits in the hands of a quartet of congressional negotiators and the White House’s top financial minds. The group, formed Tuesday, has met three times this week, but has not emerged with a proposal.

Discussion: 45 comments so far...

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  1. What part of "We're broke" don't people understand? The 'gravy train' has got to come to a stop. I'm convienced the tax reduction for ALL will create jobs in the long run.
    A Tax Payer.

  2. Tax cuts for the rich has NEVER created jobs ... not in America anyway.

  3. Food for thought: You better pray your boss get's a tax break or the next 'pink slip' may be yours. Something to think about.

  4. wildwestlv, there's enough blame to go around pal. While I side with you to an extent, fact remains we're broke. I'm college educated and even spent some time on Foremaster Lane and Main St myself. I went down to the Labor Force and grabbed a convience store clerk job for a starter. Suggest the whiners "Man up" do what their grand-daddies had to do and get off their butts and grab on to anything for now and go from there instead of bitching, casting blame and looking for a free hand out. Extended unemployment benefits is merely giving a transfusion to an amputated system.

  5. Millionaire Ensign wants to write off his hush money payments. There should be no tax cuts since both Reid, Ensign and Obama want the 2 no-win loser Wars. Time to pay down the debt.

    Who is Paris Hilton going to hire with her tax cut? another lawyer or a probation officer? rehab person??

  6. firstly don't confuse individual taxes and business taxes. they are voting on individual taxes which has nothing to do with business taxes thus creating no jobs.
    secondly, we lost jobs during these tax cuts not gained so why would keeping them create jobs?

    and lastly steve7952 if there are fewer jobs in Nevada where are these so called whiners supposed to find one? I prepare taxes and for the last two years ppl are desperate for jobs no one wants to receive an unemployment check that is 1/2 or 1/3 of their wages. when ppl call others whiners for trying to survive on unemployment I know they have no real clue as to how unemployment works or the actual massive job losses Nevada has experienced. The last two years my clients have gone from fully employed to underemployed or unemployed many have move from their houses or apartments to weeklys to staying with family to homeless. I have experienced many tears over the last two years ppl desperate wondering how they will survive. But you ppl voted in the same no Repubs with no ideas that got us in this mess. Try reading the economic report of the president during the bush years, try reading about the deregulation of the banking industry, actually look at how much is spent on the two wars (the majority of the budget) last year most americans paid 16% less in taxes. the bailouts have been paid in full try dealing in facts and maybe you'll have a clearer picture of the budget and the waste (most corporate) to blame others for trying to survive on unemployment is...

  7. blaming reid for nevada's rise in taxes? you must have voted for Guinn.I thought the legislative branch votes for tax hikes, didn't nevadans vote to raise the sales tax to hire more police? oh wait we're not dealing in facts just hate for harry

  8. "By setting arbitrary income limits our nation's job creators will be forced to suffer under increased taxes"---Senator John Ensign
    -------------------------------------------------
    Well for one thing, our nations job creators are not doing much job creating and their taxes have been cut for some time now. Also, "forced to suffer", the top 1%, making in the neighborhood of $2 million per year are going to suffer?? You have got to be kidding. What a nitwit.

  9. Well written Mr Williams. I was implying to so many jobs posted at the Labor Force and when asked, "Why arn't these jobs being filled?" The answer was always the same; "Because people are looking for big paying jobs."
    Our economics woes are a result of our voting and election delimas. As mentioned, there is enough blame to go around weither its a "R" issue or a "D" issue.

  10. Again, it will be the everyday families and individuals here in the USA that will suffer, while the top wealthy ruling class again gets a break. No talk about ENFORCING the BORDERS and dealing with ILLEGALs, no no no!

    Why can't the people of Nevada grow some courage and make their LAWMAKERS ACCOUNTABLE for over 40 years of neglect? That's right, these "lawmakers" have neglected to tax the ever so sacred brothel industry, missing billions of tax dollars that Nevadans would benefit from.

    But, as it is a matter of record, Nevada ranks bottom in the USA for thinking, er, education, er, being educated. Those who read, especially those who read newspapers and commentaries are the exception of course. We know YOU read, think, and respond, something rarely done by the "Battle Born" Nevada citizen on any kind of regular basis. Is an attitude adjustment needed here?

    Hence, one of the many reasons Nevadans suffer at the political hands of Lawmakers without any accountability for over a half century! "Someone else will do it, my opinion/vote doesn't count....yetta, yetta, yetta."

    Come on, Senator Reid, Senator Ensign, please have mercy on the silent, and even barely functioning educated majority here in Nevada, your HOME state! If you don't want to pay unemployment funds out of Washington, DC/Federal funds, let's tax the brothel industry in Nevada and pay for unemployment and other underfunded services that way!

    Cookie cutter letters written back to citizens doesn't hide your resolve and what is going on. Nevada is quite unique with the few dominant industries, and their current whining about how they are unable to pay more to help the state out. Put a fire under the current Nevada lawmakers to pass a tax on the brothel industry once and for all. Enforce our borders and deal with illegal aliens that live in the USA for decades and never become citizens. Please.

  11. ecm- unaware? just didn't discuss it. I prepare Nevada taxes, not many businesses in LV are S-corps and all mom and pops I deal with do not earn more than $250,000 or have more than 5 employees. Most ppl that are affected are individuals. The companies that hire the most workers in Nevada are casinos and constructions companies. Tax shelters have been affected by a law passed a few years ago disallowing most. I deal in facts and with the everyday ppl and businesses I serve. No one is passing on available jobs. I have been to many employment agencies and the lines are long and the places are full. place blame on the corporations that moved jobs overseas, place blame on the governor you voted in, place blame on the deregulation of the banks, but stop blaming out of work individuals and the phantom wealthy. You voted Guinn in... but never want to discuss his policies. My home state is not having this problem also known as taxachusetts. Most are educated, the economy is diverse, I don't know any one on unemployment there. Maybe instead of blame try voting someone in that has a vision for the future; diverse economy, funding education, just a thought.

  12. 2 words..........TERM LIMITS

  13. We don't cave in.

    The Republicans need to be called out for the snake oil salesmen they are.

    They are doing two things:

    (1) They are holding the middle class and below level wage earners hostage in order to appease their puppet masters...the filthy rich.

    and

    (2) They are hell bent ever since 2007 to destroy any and all Democratic opposition, and carried it over in 2008 to achieve an objective of the complete and utter destruction of President Obama and his entire administration.

    We can't afford to go back to stupid Bush Jr. years of incompetence and inefficiency and downright corruption and greed.

    We stand strong.

    We don't cave.

    Stop pointing fingers at Democrats because the Republicans can't count for crap.

    Everything they are doing is transparent. They raise hell about paying for unemployment benefits. That amounts to just about $14 billion. But they want to blow a hole in the deficit that amounts to $700 billion over 10 years because of tax cuts for the filthy rich. They scream that earmarks need to stop. That amounts to just about 18 to 20 billion dollars.

    When does this craziness stop!?!?!

    I really believe the Republicans have lost their collective minds and have put people like Glenn Beck, Rush Limbaugh and Sean Hannity in charge along with Sara Palin as their Public Relations Representative.

    Hold firm, Democrats. Because you cave in now, they'll just want more...and more....and more...and more....and more....and more.... It won't stop. And the Democrats won't be the only losers if they give in to stupid, pointless and useless Republican demands. It will be the middle class that suffers in order for the rich to get even more filthy richer. Why should we have to sell our souls, just so the Republicans suck up to clowns like Steve Wynn?

    We need to hang tough.

  14. I think a point has to be made to better describe the discussions in Washington regarding IMPACT of the Bush Tax Cuts - if they are CONTINUED.

    The "3 Bush Tax Cuts" were written during, been in force (by law), for the past 10 years. During this period, which includes Obama's 2 years in office) These tax cuts have also been PART OF the Congressional Budget every year.

    The "side-show partisian language" being used to describe the negative IMPACT of extending the Tax Cuts is FALSE. Extending the Tax Cuts would be a CONTINUATION of CURRENT, authorized, budget expenditures; NOT any NEW spending that would raise the deficit beyond what has been budgeted for.

    Yes, the PEOPLE WOULD KEEP their tax custs; and the government WOULD NOT get the money. But government would not lose anything. I see this debate as a ploy to find revenue to cut the deficit, which was increased by gov't spending.

    The reason for this non-adverse EFFECT on the Congressional Budget, is because the democratic-held Congress has FAILED TO DEFINE and ENACT A Congressional Budget FOR THIS FISCAL YEAR: 2010. It does not exist.

    So there is curently NO Congressional Budget to be affected by a CONTINUATION of the Bush Tax Cuts. When (if) such tax cuts ARE extended, the Bush Tax Cuts will just show up as a LINE ITEM in the new fiscal year Congressional Budget, WHENEVER it is passed into law.

    ON A 2nd POINT regarding WHO should get continued tax cuts - politicans seem to always talking about the "middle class" for all kinds of legislation, including tax cuts.

    Well, why does Congress think what they do ONLY affects the middle-class? The rich (upper class) build corporations, hire people to work in businesses, invest in our economy, do research (often funded internally), and still seek to make a proifit, for expansion - and to pay people a living wage, plus any benefits that may apply.

    So, if we don't want to become a model of ARGENTINA's failed economy, we should not exclude "the rich" - who own and manage all segments of our economy via business, industry, technology, environment, food supply, research, etc. - from getting the same tax breaks that any of the rest of us would want to have if we created a successful business and had to pay taxes.

    The rich got that way through innovation. Business of all kinds support the needs and integral foundation of our country. All business owners employee millions of people - and they use their income and profits to expand further - to grow bigger into become major corporations. (Like BILL GATES and Microsoft.)

    SO I suggest that we stop making false excuses to deprive ANYONE of such tax breaks, which have been deemed necessary and valuable by the past leaders of our country - and which are still necessary to continue the growth and prosperity of this nation - including during this time of recession.

  15. Larry, are you telling me that you have succeed in life or are you in the other camp?

  16. Ensign voted the way his mommie and daddy would have wanted him to vote. They wrote a check for $100,000 to pay off his mistress and family. Who out there can just write a check for $100,000? Only those that can should be republicans because taht is who benefits.

  17. @ LarryVegas - I agree with you that there is a failure of many people to realize that "some people succeed in life and others don't...." But, many people - especially those disenchanted with their own circumstances - would rather rail against successful people (including "big busness"), rather than be proactive in something to improve their own lot in life - perhaps even advance to the "rich" level.

    Rich people probably don't need all the money they earn, or that their corporation receives in revenue. But, they should not be expected to "live on the edge" with higher taxation rates - just because they are rich. They took the RISKS to build a business, to FOSTER GROWTH and JOBS in our country, and I feel they have the right to their "place in the sun" - along with all the money they can earn. This is part of what made American a prosperous nation.

    And since America is based on a free enterprise system, in a capitalist society, people should realize that we could NEVER ENJOY whatever each of us wants or has - or even be able to achieve more as individuals - if the business infrastructure of our nation had not been first developed by entrepreneurs.

    Yet, it seems that so much of the population has so many personal issues, and the government tries to enact so much oversight, that we all get bogged down in the mire - in the current recession - and it becomes more difficult, more controversial - as mamy fail in their efforts to move achieve new beginnings.

    But by seeking new opportunities, we will enable ourselves to live a lifestykle that WE CHOOSE - whether such lifestyle occurs by our actions, or by default.

    In the process, we must not let over the goverment get so big (remember this nation was established) that it inhibits our ability to earn a living, and take care of our family.

    Certainly, federal and state governments are necessary to providing law, order, and appropriate regulation - but government produces nothing. That's why "We the people..." are proclaimed to be citizen-owners of this country, with the government responsible to "the people."

    Thus, over taxation - at any level - is not permissable. Americans must RETAIN the ability to "lift ourselves up by our own bootstraps." America provides the OPPORTUNITY to succeed - but does not guarantee a lifestyle. The "pursuit of happiness" requires us to get off our butt and go do something. And this includes not allowing the government to tax us - anyone - in a punitive manner.

  18. Funny, but I recall the Dumbocrats stone-walling every proposal (excepting those related to 9-11) the Bush administration offered during his 1st 6 years in office including setting a new low by filibustering federal judicial nominees. After becoming the majority in 2006, the Dumbocrats, led by Harry the Red & his cohorts Schumer & Leahy, instituted gridlock for the next 2 years. Harry the Red even went so far as to keep the Senate "in session" during its breaks so Bush could make no "recess" appointments. Now the loony left is upset with the Republicrats? They have to be kidding! Truly, they are hypocrites!

  19. We had 8 (COUNT THEM) EIGHT YEARS of JOB CREATION by the WEALTHY and look at the job situation now.

    Eight years to help the Nation and all they did was get NO BID CONTRACTS in WASHINGTON, create a BUBBLE ECONOMY based on LIARS LOANS and destroy JOBS and FINANCIAL SECURITY AT THE SAME TIME. Now they want more money to buy up the houses for resale later.

    RIGHT! The "JOB CREATORS?". Wow - sounds like gospel from the Church of Ensign.

  20. All this wrangling about tax cuts and related issues concerning taxes is so unnecessary. If Congress would pass a flat tax bill, such as the "Fair Tax" initiative, all this hulabaloo would be over. EVERYONE would know what their taxes were going to be ALL THE TIME. This would provide stability for small businesses (ALL businesses, actually) as well as individuals. We could shut down the crime syndicate known as the IRS. Experts on the issue say businesses that have moved abroad would come back to the US. This is a great conservative idea. But, will it happen? Not likely, as long as the Dems retain control of the Senate and the White House. The Dems are the REAL obstructionists.

  21. A millionaire owns where you work in New York City if King Obama get's what he wants that owner will pay out 60% out of his pay check ......... Question how any jobs will be there next week ?

    Quick answer NONE 0

  22. None of these tax schemes address the real problem.
    Take a look at railcars rolling down the tracks with all the CHINA SHIPPING containers. The planned airport expansion while bringing a few temporary construction jobs will bring more imports into Nevada from Asia. This tax plan or that tax plan does nothing to address the real problem. Americans have been sold out by Bankers, Wall-street and their bought and paid for Politicians. Nothing will change until Americans have jobs again here in U.S.A. Building more Walmarts is not the answer.

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