Another Obama Plan Receives No Democrat Support
Remember earlier this year when exactly zero Democrats voted for President Obama’s FY2013 budget? The House voted 414-0 and the Senate voted 99-0 against the President’s budget. This was the second year in a row the Senate unanimously rejected the President’s budget.
And it’s happening again.
Another of the President’s proposals will not be accepted by Senate Democrats. Two weeks ago, President Obama laid out his tax “plan” that would hike taxes on those making more than $250,000 a year – his definition of rich. He also, in his FY2013 budget, proposed hiking the tax rate on dividends, which is the money paid out to investors when a company does well.
Despite reports to the contrary, Senate Democrats have their own plan and will not introduce the plan being touted by the President and left-leaning pundits. Instead, their plan sets the top tax rate for dividends at 23.8%, nearly 20 percentage points lower than what President Obama sought, though a substantial increase from the current rate of 15%. The Senate plan also includes a top estate tax rate of 45% and a one-year alternative minimum tax (AMT) patch to prevent the tax from crushing middle-class families. And yes, they do include the tax hike on those making over $250,000 a year.
It’s becoming pretty clear that President Obama has lost the support of his party, even if they refuse to admit that. By disregarding his plan, though a bit more subtly than Senator Chuck Schumer’s (D-NY) initial rejection, Democrats are essentially thumbing their noses at the President.
Their subtle reluctance to support the President when it comes to tax policy isn’t enough, though. They are still on the wrong side of the American people. A recent Marist and McClatchy poll show that a majority of registered voters want all of the current tax rates extended, not just those for the middle class. Fifty-two percent of registered voters want the tax rates extended for everyone, compared to 43% who just want them extended for the middle class.
Democrats – especially President Obama – should pay attention.