Posted: Aug 1, 2012 4:50 PM
Updated: Aug 1, 2012 4:50 PM
Source: Associated Press
WASHINGTON - Democrats have lost a bid in the Republican-controlled House to increase taxes on high-income earners and on people who inherit million dollar-plus estates.
The Democratic plan, which was backed by President Barack Obama, fell to Republicans who insisted that a full package of Bush-era tax cuts be renewed when they expire at the end of the year. A vote on the Republican tax bill was expected later Wednesday.
The dueling votes on taxes were more about political messaging three months before Election Day than a genuine attempt to resolve the impasse over taxes.
The impasse threatens a fiscal stalemate that could result in higher payroll deductions for every worker starting in January. Tax cuts and a move to avert painful across-the-board spending cuts will top Congress' agenda after the elections.