McConnell proposes indefinite tax cut

WASHINGTON, Sept. 13 (UPI) -- Senate Minority Leader Mitch McConnell, R-Ky., Monday introduced a bill to extend indefinitely Bush-era tax cuts scheduled to expire at the end of this year.

McConnell's bill would apply to the full range of tax cuts enacted in 2001 and 2003, including cuts for the wealthiest U.S. income groups, The New York Times reported.

"Democrats spent the last two years putting government in charge of healthcare, the financial sector, car companies, insurance companies, student loans -- you name it," McConnell said on the Senate floor Monday. "Now they want the tax hike to pay for it all."

Obama Monday repeated comments he made last week that he opposes allowing tax cuts to expire on taxable income for the top 2 percent of income groups.

McConnell introduced his bill as House Republicans openly disagreed with a comment by House Minority Leader John Boehner, R-Ohio, that he would consider allowing top-bracket tax cuts to expire this year.

No member of the GOP House leadership, including Minority Whip Eric Cantor of Virginia and Republican Conference Chairman Mike Pence of Indiana, has backed Boehner's statement on CBS's "Face the Nation" Sunday that, while he prefers extending all George W. Bush-era tax cuts, he wasn't averse to extending tax cuts only for wage-earners not earning more than $200,000 or couples earning $250,000 or more.

While not openly criticizing Boehner's apparent change of heart, several GOP House leaders were uncomfortable about the fissure it caused, Politico said.

"Mr. Pence believes that there should be no tax increase on any job creator next year," said Matt Lloyd, the Indiana congressman's spokesman.

Cantor's office expressed similar sentiments, Politico said. The second-ranking House Republican said he would do "everything in my power to stop President Obama and (House) Speaker (Nancy) Pelosi from raising taxes on working families, small-business people and investors."

Unless Congress acts, nearly all the tax cuts or credits enacted in 2001 and 2003 during the Bush administration expire at the end of this year. The Christian Science Monitor said the potential changes include:

-- The rates now at 10, 25, 28, 33 and 35 percent would all rise to 15, 28, 31, 36 and 39.6 percent.

-- Indexing of the alternative minimum tax for inflation would end.

-- Taxes on capital gains and dividends would rise.

-- Married couples would go back to paying higher rates.

-- Expanded tax credits would end.