Dems considering keeping Bush tax cuts

Democrats are considering a plan to delay tax hikes on the wealthy for two years because the economic recovery is slow and they fear getting crushed in November’s election.

 It could mean a big reprieve for families earning $250,000 and above annually.

 President George W. Bush’s tax cuts will expire at the end of the year unless Congress acts to delay their sunset.

 Some Democrats are now arguing forcefully that a delay is a win-win plan that would help the federal budget without hurting the economy.

 Wealthy families would not have an incentive to cut back on spending and budget writers could assume an inflow of tax funds in future years, making five- and 10-year budget projections look less scary.

 Rep. John Yarmuth (D-Ky.), a member of the Ways and Means Committee, which has jurisdiction over taxes, said some of his Democratic colleagues have discussed the idea out of fear of impeding the nation’s economic recovery.

 “I’ve heard some sentiment about raising the rate but not making it effective until 2012,” he said.

 During the 2008 presidential campaign, President Obama said he would not extend the Bush-era tax cuts for families earning more than $250,000.

 Obama promised that families earning less than $250,000 would not see their taxes increase.

 But vulnerable Democrats in Congress are worried about talk of raising taxes, even on the wealthiest families, when the national economic recovery has slowed.

 “I think the recovery is sufficiently fragile that we ought to leave tax

More here:

http://thehill.com/homenews/house/110251-tax-hikes-may-wait