Tuesday, July 10, 2012

Embattled Dems diverge From Obama on taxes

President Barack Obama’s renewed push to raise taxes on people who make more than $250,000

is facing some strong head winds: Democrats running for Congress in 2012.

Several Democrats in critical House and Senate races say they prefer raising taxes on

people who make more than $1 million, the latest example of how the president and

vulnerable Democrats are mounting diverging campaigns just four months from Election Day.

Democratic Florida Sen. Bill Nelson’s “favored” position is to permanently extend the

Bush-era tax cuts for those making less than $1 million, according to his office. Democrat

Heidi Heitkamp, the North Dakota Senate candidate, also wants to extend the tax cuts for

those making less than $1 million. Former Nebraska Sen. Bob Kerrey, who’s running again in

his home state, “believes the $250,000 limit is too low but is evaluating how specific

proposals would affect the budget,” his campaign spokesman said.

Sen. Claire McCaskill (D-Mo.) said Monday she is “open” to extending all the tax cuts for

those who earn up to $1 million if it’s part of a comprehensive deal to rein in the

deficit. Rep. Shelley Berkley (D-Nev.) supports extending tax relief for those families

earning up to $1 million, though she said she’s also “open” to all middle-class tax

relief and backs the president’s latest call.

Virginia Senate candidate Tim Kaine, the former chairman of the Democratic National

Committee, prefers a $500,000 threshold. Democratic Rep. Kathy Hochul, a top GOP target in

her upstate New York House race, wrote to House and Senate leaders on Monday asking for a

prompt vote to permanently extend tax rates for the middle class, noting that she, like

Kaine, believed it should be set at $500,000.

The clear difference with the White House underscores how Democrats on the front lines of

their congressional campaigns are not afraid to buck their party’s leader on even some of

the most high-profile issues of the election.

The divergence can be seen on other fronts as well: A handful of vulnerable Democrats are

expected to vote in favor of repealing Obama’s health care law when it comes up for a

symbolic vote Wednesday in the House. Coal-state Democrats have been openly criticizing the

president on energy policy. And several Democratic lawmakers in tough races are bowing out

of their party’s three-day convention in September, believing that physical distance from

the president during the convention may help them politically.

The mixed messages also represent a sharp shift in the tax debate in recent months. While

Obama has consistently called for tax increases on those earning more than $250,000 dating

to his 2008 campaign, Democrats in Congress have focused on raising taxes on families

earning more than $1 million.

Proponents of the so-called millionaires’ tax — led in part by New York Sen. Chuck

Schumer — believe it’s an easier pitch to make to swing voters, especially near major

cities where a $250,000 income may not stretch as far as in other parts of the country. The

argument, they argued, has effectively blunted the GOP attack that the tax increases would

hurt small businesses, though Schumer dropped his objection to the president’s latest

proposal, sources said Monday.

Obama has embraced the millionaires’ tax as well, agreeing to include it as a way to pay

for his American Jobs Act last fall and pushing the so-called Buffett rule that would

impose a minimum 30 percent tax on those earning more than $1 million.

But by renewing his call Monday to raise taxes on those earning more than $250,000 for one

year, Obama risks reopening party divisions that appeared to be smoothed over.

Sen. Joe Manchin (D-W.Va.), who supports the Buffett rule but voted in 2010 against letting

the tax cuts expire for those earning more than $250,000, said people from his state are “

tired of temporary solutions to our long-term problems.”

“While I haven’t reviewed the administration’s proposal, it’s time for both sides to

stop playing political games and instead do what the people sent us here to do: Put our

financial house in order and leave America better off for the next generation.”

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