Economy
11:06 am
Mon December 17, 2012

Report: McConnell, Senate Republicans Willing to Compromise on Higher Taxes

Kentucky Senator Mitch McConnell is reportedly signaling that he and fellow GOP Senators are open to a strategy that would likely lead to the expiration of the Bush-era tax cuts for the nation’s highest earners. The website Politico is reporting McConnell talked about Senate Republican strategy late last week during a dinner in Washington with lobbyists.

Sen. Mitch McConnell (R-KY)

Citing multiple sources in the room, Politico reporters say McConnell told those in attendance that Senate Republicans were looking to take a “two-bill strategy” to resolving the fiscal cliff crisis. Under such a plan, two different bills would be advanced in Congress, giving each party the chance to vote on the approach they favored, while knowing only one measure will actually be signed into law.

Poltico reports McConnell suggested he believed Senate Republicans could support a bill that renewed the Bush-era tax cuts for all but the top 2% of wage-earners, and increased taxes on capital gains and dividends from 15% to 20%. At the same time, the GOP-led House would pass a second bill that would extend the Bush tax cuts for all Americans. Such a move could possibly allow House Republicans to save face with supporters who are against raising any taxes.

According to Politico, House Speaker John Boehner has so far resisted the plan being floated by McConnell, setting up a possible inner-party squabble between House and Senate members of the GOP.