Congress Taxes

Monday, September 13, 2010 - 8:11am

To tax or not to tax?

To tax or not to tax? That's the big question as Congress returns to work this week. Business taxes, and your taxes, are all on the table as Washington tries to figure out how to dig out of this economic downturn much faster.

Tea partiers made their voices heard this weekend, "I want the big government stopped. And the taxes - don't want the taxes,” said Mark Gerardi of New York City.

If Congress doesn't act, your taxes go up January first, $3,600 for a family making $200,000.

President Obama wants to keep the Bush tax cuts for those families, but let them expire for incomes over $250,000. "What we cannot afford to do is pass $700 billion additional dollars of tax cuts for millionaires and billionaires," says the Chairman of the Council of Economic Advisors, Austan Goolsbee.

Republicans had opposed that, but one leader may now support it. "If the only option I have is to vote for those at $250,000 and below, of course I'm going to do that," said House Minority Leader, Rep. John Boehner of Ohio.

It’s a thorny issue to decide before November’s election. The White House wants Congress to deal with the middle class now, and decide on tax cuts for the rich later. "Let's not hold them hostage while we debate whether we're going to give this very small number of people at the top a tax cut that we can't afford," said Senior Advisor to the President, David Axelrod.

What may pass in the next week, 12 billion in small business tax breaks plus 30 billion for small business loans. That stalemate was broken when one retiring republican agreed to vote for it.

Tracie Potts, NBC News.

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