Senate Republicans say they are opposed to an extension of tax cuts for middle-income families unless cuts also are extended for the wealthiest Americans. Senator Lindsey Graham says he’s in favor of extending the Bush-era tax cuts and he says there are some Democrats who also support extending the cuts for upper-income Americans, due to the fragile economy. The existing tax cuts will expire at the end of the year.
Graham told Fox News Tuesday that he’s willing to reach across the aisle to make the tax cut extension a reality.
The goal is jobs. Does tax policy affect jobs? The answer is ‘yes.’ If you raise taxes on anybody now, you’re going to hurt job growth. There are five Democrats in the Senate who want to extend the Bush tax cuts. I want to reach across the aisle with them and come up with a package that will allow us to extend all the tax cuts and quit playing class warfare.
Graham says the first rule of government should be not to cause harm, and he says raising taxes now will cause harm.
Tax policy is about the global economy. We tax way too much here. If you make a million dollars, good for you. Thirty-nine percent is too much of anyone’s money to take, 35 percent, I think is too much. So I’m not interested in raising taxes on anybody. I’m interested in creating jobs. So I’ll reach across the aisle with Democrats who want to extend the tax cuts.
Graham says the less spending on Capitol Hill, the better.
The less money we spend up here, the better our national debt situation will get. If you want to create jobs in the private sector, let’s make sure that we don’t raise capital gains taxes. If you want corporations to expand, allow people to buy stock and preferential tax rates rather than doubling the stock.
Graham says other taxes will also expire in December, not just income tax.
Capital gains taxes–a lot of people rely on that. If you increase capital gains taxes people do less business deals. And the less business deals they do the harder it is to create jobs.
Graham wants to extend tax credits for first-time home buyers, not to expand the tax code. He says increasing taxes is no way to solve the current economic problems.
Growing the government doesn’t create jobs, it just creates more debt. The stimulus bill that our Democratic friends passed missed the mark. We’ve lost two-and-a-half million jobs. If you want to stimulate the economy keep taxes low, help people who are unemployed, but eventually try to create an entrepreneurial environment in this country.
National news reports indicate that over in the House, a group of centrist Democrats will call for a short-term extension of the cuts for upper-income Americans–a move that adds to the pressure on Democratic leaders who want any extension to apply only to middle-income earners. A group of House Republicans have said they will reject any plan that wouldn’t keep the 35 percent tax rate for those earning more than $200,000 a year.