Republicans and Democrats are once again failing to compromise – this time it’s on a major tax decision for wealthy Americans.

• During the Bush presidency, taxes were cut for pretty much everyone, at every income level. But now Congress is having a pretty heated debate about whether to renew them this month.
• Republicans want to keep the tax cuts, but Democrats believe that raising taxes on the rich (to pre-Bush levels) is the only way to reduce our giant budget deficit and fund relief for Americans suffering from the recession.
• Publicly, Democrats are fighting the extension of Bush-era tax cuts, calling them “tax cuts for millionaires.” But because opposition from Republicans is so strong, they may be forced to accept a renewal of today’s tax structure.

Facts & Figures

• Republicans once coined the emotionally-charged term “death tax” to turn public opinion against estate taxes
• Some Dems have proposed a compromise that only raises taxes on households making more than $1 million

Best Quotes

In the Democrats’ corner:

“Just as the death tax sort of put Democrats on the defensive on the estate tax, the millionaires’ tax is putting the Republicans on the defensive on tax policy. I think it is a potent issue with the public.” – New York Democratic Senator Charles Schumer

The Republican perspective:

“They are trying to create class warfare. But I don’t care who they take it from. It’s still money out of the private sector.” – South Carolina Republican Senator Jim DeMint

Tags: Congress, politics, tax cuts, taxes, wealth distribution